The VCs that could run the EU’s €5bn Scaleup Europe Fund

2026-02-06 · Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Economic Analysis & Policy, Venture Capital · Depth: Intermediate, short

Summary

The European Innovation Council (EIC) is seeking venture capital (VC) fund managers to oversee the new €5 billion Scaleup Europe Fund, which aims to invest €3 billion into deeptech startups. This initiative is part of Europe's broader effort to foster a robust deeptech ecosystem, focusing on areas like quantum computing, AI, cybersecurity, and space. The EIC requires applicants to have managed at least €500 million across two funds, with a preference for managers who have previously deployed capital from the EIC Fund. Notable European VCs like Balderton, Index, Northzone, and Atomico have surpassed the €1 billion fund mark, but managers meeting the EIC's specific criteria, including a track record with EIC co-investments, are less common. The fund seeks to back 80-100 companies, with 20-30 receiving direct EIC co-investments.

Key takeaway

For investors considering participation in European deeptech funding initiatives, you should evaluate your firm's alignment with the EIC's stringent criteria, particularly the €500 million AUM and prior EIC co-investment experience. This fund represents a significant opportunity to deploy capital into high-growth deeptech sectors, but only well-established managers with a proven track record will qualify. Ensure your portfolio strategy emphasizes long-term growth in areas like AI and quantum computing to meet the fund's objectives.

Key insights

Europe's EIC is launching a €5 billion Scaleup Fund to boost deeptech, seeking experienced VC managers.

Principles

• Deeptech investment requires patient capital.
• VCs need significant capital under management.
• EIC prioritizes co-investment experience.

Method

The EIC is selecting VC fund managers based on criteria including managing over €500 million across two funds and a history of EIC co-investments, aiming to deploy €3 billion into deeptech startups.

In practice

• Target deeptech sectors like AI and quantum.
• Build a track record with EIC co-investments.
• Focus on managing substantial fund sizes.

Topics

• European Innovation Council
• Venture Capital Funds
• Deeptech Investment
• AI Investment
• Quantum Technology

Best for: Investor, Entrepreneur, Policy Maker

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.