Scaleup Europe Fund Backs ICEYE in Inaugural $5.7 Billion Deal
Managed by EQT and anchored by the European Commission, the fund targets deep tech and space sectors to bolster European tech sovereignty.
The Scaleup Europe Fund, a public-private investment vehicle with a target of €5 billion ($5.7 billion), has executed its first investment by co-leading the Series F funding round for Finnish satellite intelligence company ICEYE. The deal, announced shortly after the fund was declared fully operational, positions ICEYE, now valued above $11 billion, as the inaugural startup backed by the initiative.
The fund is managed by Swedish asset manager EQT and receives backing from the European Commission. Its primary mandate is to support growth-stage startups in strategic sectors such as deep tech, life sciences, clean tech, and space-based intelligence. The objective is to address the late-stage funding gap for European talent, ensuring companies do not need to relocate to compete globally and thereby enhancing European tech sovereignty.
ICEYE CEO Rafal Modrzewski highlighted the strategic importance of the investment, noting that space-based intelligence is becoming critical infrastructure for governments. He stated that the fund ensures companies like his can remain in Europe while scaling to meet global demands. EQT CEO Per Franzén described the initiative as a significant moment for the continent, emphasising the challenge of scaling early-stage successes into global leaders while maintaining European roots.
The European Commission provided a €1 billion ($1.15 billion) anchor investment alongside a group of institutional founding investors. These include German insurer Allianz, Dutch pension fund ABP represented by APG, Spanish entities CriteriaCaixa and Mouro Capital, Italian funds Fondazione Compagnia San Paolo, Intesa Sanpaolo, and Fondazione Cariplo, as well as Danish investors EIFO and Novo Holdings. EQT also committed its own capital to help reach the fundraising target.
EQT was selected through an open call, beating competitors including Eurazeo, Northzone, Vitruvian Partners, and Atomico. The firm will manage the fund’s investments, which overlap with its existing focus on AI, biotech, energy, robotics, semiconductors, and space. Fundraising is expected to continue into 2027, with a second round potentially open to non-European investors aligned with the fund’s objectives. The European Commission has suggested the fund could eventually expand to €25 billion ($28.9 billion).
