The Scaleup Europe Fund Sets Out to Secure Europe’s Technological Sovereignty

The European Commission has announced the full launch of the $5.7 billion (€5 billion) Scaleup Europe fund, with the first investments expected in the coming weeks. According to ixbt.com, the initiative marks an important step toward supporting growth-stage startups in the European Union and preventing them from moving abroad. Techcrunch.com reports on this.

The fund’s first deal was announced on the day of its launch and was concluded with ICEYE, a Finnish company specializing in satellite reconnaissance. Currently valued at more than $11 billion, the startup became the first company to receive Scaleup Europe support in its Series F round. ICEYE CEO Rafal Modrzewski emphasized that space technologies are becoming critical infrastructure for governments and noted that the fund would ensure companies do not have to leave Europe to compete globally.

A step toward preserving Europe’s technological sovereignty

Strengthening Europe’s economic and technological independence is one of the fund’s main objectives. Although the region has no difficulty nurturing talented young people and creating successful technology companies at an early stage, the late-stage funding needed to turn them into global leaders often has to be sought abroad. For this reason, the European Commission created this major public-private partnership fund to close the gap.

Unlike programs managed by traditional European institutions, Scaleup Europe is backed by private investors and managed by the asset management company Shrivedman EQT, selected through an open tender. Leading investment firms such as Eurazeo, Northzone, Vitruvian Partners and Atomico had also competed for the mandate.

Future directions and funding volume

EQT CEO Per Franzen said the initiative was of historic importance for Europe. According to him, the main task is to turn successful early-stage businesses into global leaders while preserving their European roots. The Commission has granted the fund manager broad powers to invest in the following strategic areas:

• Deep technologies (Deep tech)
• Life sciences and biotechnology
• Clean technologies and energy
• Advanced manufacturing, robotics and semiconductors
• Digital technologies and the space industry

It is currently unclear how much capital Scaleup Europe has raised, but its initial close was completed with a €1 billion investment from the European Commission (approximately $1.15 billion), along with support from institutional co-investors recruited from across Europe. With more than $300 million in assets under management, EQT will continue guiding the fund toward its final fundraising targets by investing a substantial share of its own capital.