A new fund is to invest in promising, high-tech, Dutch start-ups and scale-ups. It is about DeepTechXL Fund I, which specifically focuses on Brabant. The investment fund aims for a fund capital of at least EUR 100 million.
ASML, Philips, Brabantse Ontwikkelings Maatschappij (BOM) and TNO, among others, as well as PME Pensioenfonds and Invest-NL are investing in DeepTechXL Fund I. The fund will receive a €9 million loan from Rijksdienst voor Ondernemend Nederland (RVO). This loan is specifically intended for seed investments.
Deep tech
Deep tech is a term that describes key technologies that use state-of-the-art research to solve key societal issues in the areas of health, energy transition and sustainability, safety and nutrition. This involves research that has an impact on the Sustainable Development Goals set by the UN.
The Brainport region is a major tech hotspot in the Netherlands and north-western Europe. However, that does not mean that attracting funding is easy for deep tech start-ups in this region. On average, they spend more than half of their time securing funding. Especially a lack of knowledge and resources among potential investors is an obstacle here. As a result, dozens of promising innovations remain on the shelf in the Netherlands every year, the parties involved report.
Fund helps companies grow
DeepTechXL Fund I works with a fund team consisting of experienced venture capital entrepreneurs. They partner with tech companies and organisations from the sector, knowledge institutions as well as regional and national investors. In this way, the parties aim to provide promising Dutch deep tech companies with a combined financial and innovation ecosystem that helps them grow.
The fund's participants are diverse. They include ASML, PME Pensioenfonds, Invest-NL, Philips, BOM and TNO. A number of Dutch family offices and members of the fund management themselves also participate in DeepTechXL Fund I. Guus Frericks, Teska van Vuren, Ron Maurer and Ronald Meersschaert head the investment fund.
More than an investment vehicle
DeepTechXL Fund I is expected to fund 20 early-stage ('seed') investments. Some 15 investments are likely to be targeted at companies in the next growth phase. They will receive financial support at different stages of their development, from (pre-)seed to Series A-C.
The parties involved emphasise that DeepTechXL is more than just an investment vehicle. Indeed, due to its complexity, Deep tech requires more than just financial resources, according to the parties. The fund therefore also offers support to start-ups in the form of knowledge, network, technologies, licences and business development. For instance, the fund can connect companies with a first customer. Or help find the right partner in the supply chain. But also think about entering new markets and scaling up production. DeepTechXL will work intensively with venture builder HighTechXL, an existing deep tech innovation initiative of ASML, Philips, TNO and BOM.
Author: Wouter Hoeffnagel
