The Scaleup Europe Fund has announced its first investment, backing Finnish satellite intelligence company ICEYE. This marks the initial deal for the public-private fund, which aims to deploy €5 billion ($5.7 billion) into growth-stage startups based in the EU or partnering countries.
ICEYE, now valued above $11 billion, received support from the fund as it co-led its Series F. Rafal Modrzewski, CEO of ICEYE, stated that space-based intelligence is becoming critical infrastructure for governments, and the fund allows companies like theirs to compete globally without leaving Europe.
The European Commission established the fund to address a perceived lack of late-stage funding for deep tech talent in Europe. Swedish asset manager EQT, selected through an open call, is responsible for running the fund. EQT CEO and managing partner Per Franzén described the initiative as a "big moment for Europe," aiming to help European technology companies scale into global leaders while retaining their European roots.
The fund's mandate includes sectors such as deep tech, life sciences, clean tech, advanced manufacturing, and digital technologies. Its first closing was anchored by a €1 billion (approximately $1.15 billion) investment from the Commission, alongside institutional investors from across Europe, including German insurance giant Allianz and Dutch pension fund ABP.