EU in talks with backers for $5.8 billion tech fund

The fund has an initial goal of $5.8 billion, and has received commitments for $3.49 billion

The European Union is in discussions with the first anchor investors for a fund that will back companies on the continent working on quantum computing, artificial intelligence, and other strategic technologies.

Denmark’s EIFO sovereign wealth fund, Spain’s Criteria Caixa SA and the Novo Nordisk Foundation are in talks to invest in the Scaleup Europe Fund, people familiar with the matter said.

The fund has an initial goal of €5 billion ($5.8 billion), and has received commitments for €3 billion ($3.49 billion), the people said. A further €1 billion ($1.16 billion) is earmarked from the EU’s accelerator, the European Innovation Council.

The European Commission, the EU’s executive arm, eventually hopes to raise €25 billion ($29.10 billion), a spokesperson said.

The commission will hold a meeting on Tuesday with prospective backers, the people said.

The EU’s lending arm, the European Investment Bank will attend Tuesday’s meeting and is still assessing whether to participate, a spokesperson for the bank said.

The public-private fund will focus on investment rounds of more than €100 million ($116.42 million), according to an internal commission document seen by Bloomberg News.

Europe has struggled to prevent some of its most promising deep technology companies from selling to overseas buyers or moving to the US. Advanced Micro Devices Inc agreed to buy Finnish artificial intelligence lab Silo AI for $665 million last year, while Apple Inc acquired French AI company Datakalab in 2023.

Fund recipients will be required to maintain their headquarters and core operations in Europe and the fund will focus on “strategic and enabling technologies” including robotics, advanced materials, clean energy, robotics and biotech, according to the document. The commission plans to appoint an external fund manager by January 2026.