The European Commission's €5bn Scaleup Europe Fund has completed all legal proceedings and is ready to invest, with first deals expected in coming weeks. Run by Swedish investment firm EQT, the fund aims to ensure European scaleups can grow into world-leading companies without leaving the continent, according to Commission president Ursula von der Leyen.

EQT has a pipeline of over 100 startups and will typically lead or co-lead investments between €100m-500m. The fund is reportedly in talks to lead or co-lead a fresh funding round for French AI company Mistral, which is targeting €3bn in new capital, and has also been in discussions with Franco-German spacetech startup The Exploration Company for a round around $350m.

Existing limited partners include Novo Holdings, EIFO, Santander/Mouro Capital, APG Asset Management on behalf of Dutch pension fund ABP, Wallenberg Investments and Allianz. EQT is still fundraising the remainder of the €5bn target. The UK was reportedly in talks to invest via the British Business Bank, though the French government has pushed back.