EQT AB says its new technology-focused initiative will help address Europe’s persistent difficulty in scaling startups into global technology leaders, as policymakers and investors seek to retain high-growth companies within the region, according to a report by Bloomberg.
Chief executive Per Franzen said the fund is designed to support Europe’s most promising growth-stage technology firms and improve the region’s track record in producing large-scale tech champions.
The comments come after EQT was selected by the European Commission to manage a €5bn “Scaleup Europe Fund,” which will target privately held technology companies from Series B funding onwards.
The initiative aims to strengthen Europe’s late-stage venture ecosystem at a time when many successful companies have historically either been acquired by foreign buyers or moved their listings to overseas markets.
EQT has argued that Europe continues to lag behind the United States in producing $10bn+ technology companies, with only a small number of such firms emerging in Europe compared with hundreds in the US over recent decades.
The firm also estimates that a significant volume of European tech value has been lost to foreign markets over the past decade, as companies scaled or exited outside the region. It says reversing that trend will require deeper pools of late-stage capital and more coordinated institutional support.
Founding investors in the new vehicle include APG Asset Management, Mouro Capital and Novo Holdings, alongside commitments from EU-linked capital and EQT’s own balance sheet.
