The EU handed Swedish investor EQT a mandate to run its €5bn Scaleup Europe Fund, Europe's largest tech-focused fund. The selection capped a closely watched contest among the continent's top firms. Backing 100-plus companies across early and growth stages, the fund aims to channel capital into high-potential startups before they reach scale.

Scaleup Europe Fund targets tech companies across sectors from fintech to healthtech. By tapping EQT Growth, the EU signals intent to build a competitive European venture ecosystem rather than rely on US capital. The fund's size dwarfs most regional competitors, giving EQT significant influence over which startups secure backing.

EQT will deploy capital into companies that meet strict growth benchmarks. With the EU pushing for strategic autonomy in tech, this fund positions European startups for larger rounds. Expect the first investments to flow within months as EQT finalizes its pipeline.