What’s Scaleup Europe, the $5.7B fund that just backed satellite company ICEYE?
The European Commission has launched the $5.7 billion Scaleup Europe Fund, managed by EQT, to provide growth-stage funding for EU-based startups. The fund's first investment is in Finnish satellite intelligence company ICEYE, aiming to bolster European tech sovereignty.
Why it matters
This initiative represents a strategic effort by the EU to prevent deep-tech talent and companies from migrating to the US or elsewhere due to a lack of late-stage capital.
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 .
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