The Scaleup Europe Fund was established by the European Commission alongside a group of European investors and is managed by EQT. With a target size of €5 billion, the fund is designed to address Europe’s shortage of growth capital for advanced technology companies.
Founded in Finland in 2014, ICEYE owns and operates one of the world’s largest and most advanced synthetic aperture radar satellite constellations. The company provides end-to-end sovereign space systems to seven European governments.
ICEYE has significant operations in Finland, Poland, Spain and Greece. It has also expanded its European footprint by establishing new entities in Germany and Portugal.
The company recently delivered a fully operational sovereign satellite capability to Poland less than 12 months after contract signing. EQT said the delivery established a new benchmark for deployment speed.
“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, Partner at EQT and Co-Head of the Scaleup Europe Fund. “ICEYE has already established itself as a category leader, and we’re excited to partner with Rafał and the team as they continue scaling from Europe to the world.”
“Europe has the talent, technology and ambition to build globally leading companies in strategically important industries. Our own journey reflects that,” said Rafał Modrzewski, Co-founder & CEO, ICEYE.
“My co-founder Pekka Laurila and I met as students on an Erasmus exchange, received our first funding through Horizon 2020, and we are grateful for the European Commission’s role in initiating the Scaleup Europe Fund. We are pleased to welcome EQT as a long-term partner through the fund, as we continue to expand our sovereign intelligence capabilities from Europe for customers across Europe and globally,” Modrzewski said.
The fund plans to invest in artificial intelligence, quantum computing, dual-use technologies, clean energy, space, biotechnology and medical innovation. Its strategy is to help European technology companies expand globally while remaining anchored in Europe.
“When Europe invests in its innovators, Europe invests in its future. This is the goal of our Scaleup Europe Fund: it will ensure our scale-ups can find what they need right here in Europe to grow into world-leading companies,” European Commission President Ursula von der Leyen said.
“To turn European innovation into our competitive edge,” von der Leyen added. ICEYE is the first company selected under the fund’s mandate to support strategically important European technologies.
The financing will support ICEYE’s continued expansion in sovereign intelligence and satellite-based monitoring. The transaction remains subject to customary regulatory approvals and other closing conditions.
