The foundation supports deep tech companies with growth • Metaal Magazine

Every year, dozens of promising innovations remain on the shelf in the Netherlands. To break through this, DeepTechXL Fund I is established in Brabant. This fund will invest in promising high-tech startups and scale-ups in the Netherlands. ASML, Philips, Brabantse Ontwikkelings Maatschappij (BOM), TNO, PME Pensioenfonds and Invest-NL are involved in this.

Deep tech is the common name for key technologies that use the latest research to address important social issues in the areas of health, energy transition and sustainability, safety and nutrition. These key technologies must have an impact on the Sustainable Development Goals set by the UN.

Lack of knowledge and resources

The main reason why promising innovations often remain on the shelf is that deep tech startups, on average, spend more than half of their time realizing financing. This is due to a lack of specific knowledge and resources among potential investors.

According to the partners, deep tech is the driving force behind sustainable economic success and high-quality employment in the manufacturing industry. And in their eyes, the Brainport region is the technological hotspot of Holland and Northwest Europe. It informs BOM.

Investing parties

A fund team of experienced venture capital entrepreneurs enters into a special partnership with leading tech companies and organizations from the sector, knowledge institutions and regional and national investors.

For example, they want to offer promising Dutch deep tech companies a “combined financial and innovation ecosystem for successful growth and impact”.

Signal for expansion of the manufacturing industry

The fund has received investments from, among others, ASML, PME Pensioenfonds, Invest-NL, Philips, BOM and TNO. The investment from ASML, Philips and PME Pensioenfonds is an important signal that sector partners want to make a greater contribution to the expansion of the manufacturing industry in the Netherlands.

Invest-NL, BOM and TNO are among active players in (deep tech) innovation in the Netherlands. A number of Dutch family offices and the members of the foundation management themselves also participate in the foundation.

100 million euros in assets

The parties aim for a minimum of 100 million euros as assets for the new fund. In addition, the Dutch Companies Agency (RVO) provides a loan of 9 million euros, specifically for seed investments (early phase). This in connection with a Seed Capital deep tech tender of a total of 21 million euros, which RVO had issued in 2021.

DeepTechXL Fund I is expected to finance 20 early stage investments and around 15 investments in the next growth phase. Companies therefore receive financial support in various phases of their development, from (pre-) seed to Series AC.

Also other support

Because of its complexity, deep tech requires more than just financial resources. DeepTechXL is therefore more than just an investment tool.

“Together with the investing (industry) partners, the fund offers startups support in the form of knowledge, networks, technologies, licenses and business development. The fund can connect companies with a first customer, help them find the right partners in the supply chain, enter new markets or scale production. ”

DeepTechXL will collaborate intensively with venture builder HighTechXL, an existing deep-tech innovation initiative from ASML, Philips, TNO and BOM.

Management and industry partners

DeepTechXL Fund I is managed by Guus Frericks, Teska van Vuren, Ron Maurer and Ronald Meersschaert. “They combine many years of experience with a proven track record in deep tech venture building and venture capital investments.”

The foundation operates in the backyard of Brainport’s high-tech ecosystem. This consists of a cluster of knowledge institutions, tech companies, suppliers, co-investors, government organizations and more than 400 leading tech experts.

Priming effect

“DeepTechXL is a long-cherished desire of regional and industrial partners to act as a lever for the creation of new high-quality employment in the Netherlands.”

“Due to the involvement of leading tech companies, the initiative will attract enterprising tech talent,” the initiators expect.

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