What’s Scaleup Europe, the $5.7B fund that just backed satellite company ICEYE?

Published 11 August 2026 · europe

Forget the European summer lull: startups can’t afford to stay still, and Brussels is following suit. In the middle of peak vacation time, the European

Forget the European summer lull: startups can’t afford to stay still, and Brussels is following suit. In the middle of peak vacation time, the European Commission announced that the Scaleup Europe Fund was fully operational, with investments “expected in the coming weeks.” But its first deal was actually made public the very next day. ICEYE, a Finnish satellite intelligence company now valued above $11 billion, is the first startup backed by this unique public-private vehicle, which co-led its Series F. Similar deals should follow soon; Scaleup Europe plans to deploy €5 billion ($5.7 billion) into growth-stage startups based in the EU or partnering countries and operating in strategic sectors. “Space-based intelligence is becoming critical infrastructure for governments, and the Scaleup Europe Fund exists so companies like ours don’t have to leave Europe to compete globally,” ICEYE CEO Rafal Modrzewski (pictured above) wrote on LinkedIn. Even in less critical sectors, helping Europe build scaleups and keep them is key for its competitiveness and tech sovereignty — and that’s also the fund’s raison d’être. With the conviction that Europe misses out when its deep tech talent lacks late-stage funding or only finds it abroad, the Commission took the matter into its own hands, but it also partnered up.

Unlike other programs that are managed directly by European institutions and handing out public monies, Scaleup Europe is backed by private investors and run by Swedish asset manager EQT, which was selected via an open call to “experienced fund managers.” Other candidates reportedly included Eurazeo, Northzone and Vitruvian Partners, with Atomico as final challenger. While it has offices across Europe, the firm may have been hindered by having its headquarters in London. But having pointed out the growth funding gap for years, still described Scaleup Europe as “urgent and necessary” when EQT was announced as the winner. As for EQT, it described the initiative as a “big moment for Europe.” “Europe has proven its ability to create successful early-stage technology companies, the challenge is now to scale those businesses into becoming global leaders while maintaining their European roots,” EQT CEO and managing partner Per Franzén commented in a statement. Notably, the Commission has given the fund manager some leeway as to where to invest — with a mandate “including but not limited to deep tech, life sciences, clean tech, advanced manufacturing, and digital technologies.” For EQT, this will overlap with the likes of AI, biotech, energy, robotics, semiconductors and space — as shown by ICEYE.