- Since 2000, just six out of 14 Danish-founded unicorns have stayed in Denmark or Europe. The others moved abroad, mostly to the US, to find late-stage funding.
- EIFO, Denmark’s national promotional bank, has invested €200 million in the new Scaleup Europe Fund as the only national promotional bank among the anchor investors. It joins eight other founding investors, including the European Commission, which has committed €1 billion, Novo Holdings, Allianz, and APG.
- The €5 billion fund is managed by EQT, which has previously supported companies like Wolt, Einride, and Nothing. It plans to invest in 30 to 40 top European growth-stage tech companies, with the first investment expected in autumn 2026.
Europe is good at creating startups, but it struggles to keep them.
Out of 14 Danish-founded unicorns since 2000, only six remained in Denmark or Europe. The rest mostly moved to the US, where late-stage funding is easier to obtain, investment rounds are larger, and investors are willing to provide more capital.
Scaleup Europe Fund, the €5 billion fund, hopes to keep the next wave of high-growth companies in Europe.
Today, EIFO, Denmark’s national promotional bank and export credit agency, committed €200 million to the Scaleup Europe Fund, making it the only state-backed anchor investor. The fund is part of the European Innovation Council (EIC) Fund and is managed by Swedish investment firm EQT, which managed €269 billion in assets as of March 31, 2026.
The European Commission is also a founding investor and has committed €1 billion to the fund, the largest single commitment among the founding investors. The Commission participates on equal terms with private investors and has a corresponding representation in the fund’s governance structure.
The fund plans to invest in 30 to 40 promising European growth-stage tech companies, with the first investment expected in autumn 2026.
Why does Europe keep losing its top companies?
The fund aims to address a well-known capital shortage in Europe. For example, DeepMind was sold to Google in 2014 for what Google’s former CFO called “a steal.” ARM was bought by SoftBank in 2016 for £24 billion.
Since 2019, US buyers have picked up almost $24 billion in European spinouts, more than local buyers. Many European companies do well up to Series B or C, but then struggle to raise more than €100 million to compete globally. This funding gap pushes companies to seek capital abroad or slow their growth, and securing capital outside Europe often means relocating the company.
The Scaleup Europe Fund is designed to address this problem. It will invest in companies working in areas like artificial intelligence, quantum technology, robotics, energy tech, space, biotech, medtech, and agritech.
EQT plans another fundraising round in the second half of 2026, allowing more investors to join while maintaining a strong European focus.
Why is EIFO the only state backer
EIFO has done more than just invest money. Over the past year, it helped design the fund, led the process to choose EQT as manager, and set the investment criteria. This means the fund is set up for commercial success from the beginning, rather than being changed later to fit policy goals.
Peder Lundquist, EIFO’s chief executive, says the commitment reflects a structural problem that has cost Europe dearly.
“Europe clearly needs stronger capital in the later growth stages if we are to retain our most promising companies on the continent. With the Scaleup Europe Fund, we are helping address a critical gap and ensuring that more of these companies stay in Denmark and Europe,” he notes.
Erik Balck Sørensen, EIFO’s chief investment officer, emphasised that commercial viability was essential in the fund’s design.
“We have been closely involved in shaping the fund’s framework, and it has been essential for us to ensure a commercially viable model that can attract the strongest European companies. At the same time, we’ve had a clear focus on ensuring the fund also benefits Denmark. We’re therefore pleased that it targets several areas of Danish strength,” he adds.
Balck Sørensen expects one or more Danish companies to receive support
EQT’s track record and the expectations it brings
EQT is a seasoned manager. Its venture arm, EQT Ventures, has helped over 140 founding teams and backed unicorns like Wolt, Einride, Handshake, Nothing, and Sana.
The Scaleup Europe Fund will focus on later-stage companies from Series B onwards, with investments much larger than EQT Ventures’ usual €1 million- € 50 million range. This strong track record gives EQT credibility and raises expectations for results.
Christian Sinding, who chairs the fund’s investment committee at EQT, notes, “Europe has the talent, the technology and the ambition to produce the next generation of global tech leaders. What has been missing is the capital and conviction to back them at scale and speed. With the Scaleup Europe Fund, we are here to change that.”
Along with EIFO, the founding investors include the European Commission, Novo Holdings, Germany’s Allianz, APG Asset Management for the Dutch pension fund ABP, Spain’s CriteriaCaixa and Santander, and several Italian foundations, including Fondazione Compagnia San Paolo, Intesa Sanpaolo, and Fondazione Cariplo.
This mix is intentional, so the fund is seen as pan-European rather than serving just one country’s interests.
It’s fair to ask if €5 billion can really change late-stage funding in Europe. The US venture market often invests much more in a single quarter, and public-private funds sometimes struggle when politics gets involved. Still, the Scaleup Europe Fund isn’t trying to match US investment levels.
Its goal is to make sure the next Spotify, Klarna, or Zendesk can choose to grow in Europe. Right now, many companies don’t have that choice.
