Swedish investment firm EQT, appointed to manage the European Union’s €5 billion ScaleUp Fund this week, has expressed interest in investing the fund into UK startups, according to its CEO speaking to Sifted.eu. Currently, the fund does not have the mandate to invest in the UK, but EQT is seeking to change this to support British companies.
The EU’s ScaleUp Fund, valued at €5 billion, was established to back high-growth startups across Europe. EQT’s CEO highlighted the firm’s desire to extend investments beyond the EU’s current geographic restrictions, which exclude the UK. The appointment of EQT to manage the fund marks a significant step in deploying these resources, with the firm aiming to leverage its expertise to identify promising scaleups. The UK, despite Brexit, remains a major innovation hub, and EQT’s interest signals a potential shift in investment flows.
This development matters as it could open up a substantial new source of capital for UK startups, which have faced challenges in accessing EU funding post-Brexit. The ScaleUp Fund is one of the largest dedicated European funds targeting scaleups, and EQT’s involvement brings experienced management to the initiative. Expanding the fund’s remit to include the UK could enhance cross-border collaboration and strengthen the European startup ecosystem amid ongoing economic and political shifts.
Looking ahead, EQT will likely engage with EU regulators and policymakers to seek approval for investing in UK companies. The timeline for any mandate change remains unclear, but stakeholders will be watching closely for updates. Meanwhile, EQT’s management of the ScaleUp Fund will proceed, focusing on deploying capital across eligible European startups as per current rules.