EU launches multi-billion fund to boost deeptech scaleups

The European Commission has launched the Scaleup Europe Fund, a multi-billion euro investment vehicle aimed at supporting the growth of promising European deeptech startups and scaleups. This new fund will be privately managed and co-financed to lead major investment rounds, aiming to strengthen Europe's competitiveness in the global tech landscape.

The fund is part of the Commission's broader Startup and Scaleup Strategy, which seeks to make Europe a more attractive destination for launching and scaling innovative, technology-driven companies. Despite an increase in startup formation in the past few years, Europe has struggled to scale these businesses, given the limited access to capital founders have compared to their American counterparts.

European Commission President Ursula von der Leyen said in a statement: "Europe has the ideas and the talent to build the most innovative companies in the world. But as they scale up, we need to ensure they have the means to grow, attract investment, and thrive right here at home. High-quality jobs and Europe's overall competitiveness depend on it. The Scaleup Europe Fund is an essential part of our work to make sure the best of Europe can choose Europe."

Boosting deeptech scaleups

Alongside the Commission and the European Investment Bank (EIB) the group of potential founding investors in the Fund include Novo Holdings, EIFO (Export and Investment Fund of Denmark), CriteriaCaixa, Santander/Mouro Capital, Fondazione Compagnia San Paolo/ Intesa Sanpaolo/Fondazione Cariplo, APG Asset Management, acting on behalf of Dutch pension fund ABP, Wallenberg Investments, and BGK (Bank Gospodarstwa Krajowego).

The goal is cleat to everyone: unlocking the potential of Europe scaleups, while promoting European tech leadership. Investors will work in contact with the Commission to set and capitalize the fund. The Scaleup Europe Fund will focus on growth capital and late-stage investments, financing companies operating in domains such as AI, energy technologies, and medtech. The fund will operate as a market-based, privately managed and privately co-financed growth fund investing in major European-led investment rounds.

Europe's startup and scaleup strategy

The EU's broader Startup and Scaleup Strategy, adopted on May 27, 2025, which aims to position startups and scaleups at the core of the EU’s competitiveness agenda. This strategy seeks to 'Choose Europe' by creating improved conditions for startups and scaleups, empowering them to leverage new geopolitical opportunities and minimizing incentives to relocate outside the EU.

The strategy rests on five pillars: fostering innovation-friendly regulation, improving financing options, accelerating market uptake and expansion, attracting and retaining top talent, and facilitating access to essential infrastructure. Commissioner for Startups, Research, and Innovation, Ekaterina Zaharieva, emphasized, back then, that the fund will operate on market-based and profit-based principles, acknowledging that public funds alone cannot bridge the existing financial gap.