What’s Scaleup Europe, the $5.7B fund that just backed satellite company ICEYE?

As for EQT, it described the initiative as a “big moment for Europe.” “Europe has proven its ability to create successful early-stage technology companies, the challenge is now to scale those businesses into becoming global leaders while maintaining their European roots,” EQT CEO and managing partner Per Franzén commented in a statement.

Notably, the Commission has given the fund manager some leeway as to where to invest — with a mandate “including but not limited to deep tech, life sciences, clean tech, advanced manufacturing, and digital technologies.” For EQT, this will overlap with the likes of AI, biotech, energy, robotics, semiconductors, and space — as shown by ICEYE.

With ties to the Wallenberg family, which was initially listed as a potential anchor investor of the fund, EQT was arguably a front runner to run Scaleup Europe. With more than $300 million in assets under management, it will also be tasked with helping the fund reach its total fundraising target — starting with a “significant commitment” of its own capital. 

It is unclear how much capital Scaleup Europe has raised so far, but its first closing was anchored by a €1 billion investment from the Commission (approximately $1.15 billion) investing alongside institutional investors from all across Europe, credited as “founding investors.”

According to public information, these founding investors include German insurance giant Allianz; APG, representing Dutch pension fund ABP; Spanish bank-affiliated funds CriteriaCaixa and Santander-owned Mouro Capital; Italy’s Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo; and Denmark’s EIFO and Novo Holdings.

Scaleup Europe’s fundraising is expected to extend into 2027, with a second fundraising round described as potentially open to non-European investors, as long as these are aligned with Scaleup Europe’s objectives. 

This might be a necessary compromise to raise the kind of capital Scaleup Europe is seeking. According to reports, the Commission suggested it could eventually expand to €25 billion ($28.9 billion). If it does, it would start belonging to the same category as Asian and U.S. growth funds. 

As it stands, Scaleup Europe’s €5 billion target already makes it an outlier in the EU — VC firms in continental Europe typically manage millions, rarely billions. But with the EIF’s European Tech Champions Initiative actively backing growth-stage VC firms as a fund-of-funds, this could quickly change. In other words, Scaleup Europe may soon just be there to fill the gap.