EU’s new tech fund picks Finnish satellite firm ICEYE as first investment

The European Union's new €5 billion technology fund made its first move on Wednesday, investing in Finnish satellite company ICEYE as part of a broader effort to prevent Europe's most promising tech firms from seeking capital in the United States or China.

EQT, the Stockholm-based private equity firm appointed to manage the Scaleup Europe Fund, announced it co-led ICEYE's €1 billion Series F funding round alongside General Atlantic. The round values ICEYE at more than €10 billion.morningstar+3

Fund Takes Shape

The European Commission completed the legal steps to establish the fund on Tuesday, 4 August, allowing EQT to begin making investment decisions independently and on market terms. The fund was first announced by Commission President Ursula von der Leyen during her 2025 State of the Union address as a response to Europe's persistent "scaleup gap" — the shortage of large growth-stage funding that has pushed companies to relocate abroad.euobserver+2

"Our first investment reflects exactly what the Scaleup Europe Fund was created to support: ambitious European founders building globally competitive companies in strategically important technologies," said Victor Englesson, EQT partner and co-head of the fund.morningstar

The fund will prioritize artificial intelligence, quantum technologies, biotechnology and clean tech. Its founding investor group includes Novo Holdings, EIFO, CriteriaCaixa, Santander Banco Santander, S.A. ↘ 1.19% via Mouro Capital, APG Asset Management on behalf of Dutch pension fund ABP, Wallenberg Investments, Allianz, and the European Commission itself. Fundraising will continue toward the €5 billion target.brusselstimes+1

Why ICEYE

ICEYE manufactures and operates synthetic aperture radar satellites serving customers in defense and intelligence, environmental monitoring, insurance and emergency management. The company raised €450 million in primary funding as part of the Series F round, which was first disclosed in June. ICEYE plans to launch 25 satellites in 2026 and more than 50 in 2027, targeting annual production capacity of 100 satellites by 2028.iceye+3

Questions About Fit

As Bloomberg reported, the investment is part of the EU's push to cultivate startups working on strategic technologies. Yet EQT's core business remains buyouts of mature, cash-generating companies rather than venture investing, and its growth-stage arm manages roughly €2 billion — a fraction of the firm's total assets. Whether the fund fulfills its deep-tech ambitions will depend on the investments that follow.bloomberg+1