EU launches €5 billion Scaleup Europe fund, backs Finnish satellite firm ICEYE

In the middle of the European summer lull, the European Commission declared the Scaleup Europe Fund fully operational and slated investments for the coming weeks. The fund’s first public transaction was a co-lead in ICEYE’s Series F round, bringing a Finnish satellite-imagery company valued above $11 billion into its portfolio. Managed by EQT after a competitive selection process, the €5 billion vehicle targets growth-stage firms in strategic areas like deep tech, clean tech, life sciences and digital technologies, with the goal of keeping European deep-tech talent at home.

The Commission anchored the fund with a €1 billion commitment, and a slate of European institutional investors such as Allianz, APG, CriteriaCaixa, Mouro Capital, Intesa Sanpaolo and Novo Holdings joined as founding investors. EQT will contribute a “significant commitment” of its own capital and is tasked with raising the remainder, with a second fundraising round planned through 2027 that may welcome non-European partners. The initiative reflects Brussels’ push for tech sovereignty and aims to fill the late-stage financing gap that has driven many startups abroad.