Europe’s leading universities and research centers generate breakthrough innovations and promising entrepreneurs. But the continent’s shortage of growth capital has compelled some of its best startup talent and inventions to leave for Silicon Valley.
The European Commission’s ambitious €5 billion ($5.9 billion) Scaleup Europe Fund aims to be an antidote: a reserve of capital for growth-stage companies in strategically important deep tech sectors, including AI, quantum computing, dual use technologies, clean energy, space technology, biotech and medical innovation.
The EC has selected Swedish private equity firm EQT to manage the fund.
“This is a significant milestone for Europe at a critical moment,” said Per Franzén of EQT, which beat out London-based Atomico in the hotly contested mandate. “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.”
The EC is anchoring the fund. Novo Holdings, the Export and Investment Fund of Denmark, CriteriaCaixa, Santander and Mouro Capital, Netherlands-based APG Asset Management and Allianz also invested. I
f it reaches its target, it will be among Europe’s largest ever private funds.
Self-reliance
Several years of energy crises and security threats have forced Europe to confront its self-sufficiency. The 27-country European Union is overly dependent on imported energy, foreign-controlled supply chains and overseas technologies, Berlin-based venture capital firm World Fund warned in a report last month.
The Scaleup Europe Fund “is proof of what Europe can achieve when we align our resources,” said Ekaterina Zaharieva, Europe’s commissioner for startups, research and innovation.
EQT was reportedly chosen over private equity peers Atomico, Eurazeo and Vitruvian to manage the fund. The Stockholm-based firm has €269 billion ($312 billion) in assets under management. It will make “a significant commitment” of its own capital in the fund.
