Strategic investors and co-initiators of the fund include ASML, Philips, Brabantse Ontwikkelings Maatschappij (BOM) and the research institute TNO. PME Pension Fund and Invest-NL will also invest in the fund. DeepTechXL Fund I targets a minimum fund size of EUR 100 million. The fund also received a €9 million loan from the Dutch government institute RVO (Rijksdienst voor Ondernemend Nederland), specifically earmarked for start-up investments.
Deep-tech is a category of advanced enabling technologies developed in research facilities to address major societal challenges as defined by the UN Sustainable Development Goals in the fields of health, energy transition and sustainability, safety and food. Deep technological innovation enables long-term sustainable economic success and creates high value-added jobs in advanced high-tech manufacturing.
The Brainport region is the technology hotspot of the Netherlands and North West Europe. Yet many tech startups spend an average of more than 50% of their time raising seed money, as many existing investors lack the specific knowledge to assess technology potential for future business impact. As a result, every year dozens of promising high-tech proposals remain unexplored in the Netherlands.
The fund’s team, made up of experienced venture capitalists, engages in a unique strategic collaboration with leading technology companies in the sector, regional and national investors and Dutch research institutes, with the aim of ‘offering promising cutting-edge technology companies access to the combined financial innovation ecosystem to drive innovation. , accelerate growth and have a positive impact.
The fund received investments from ASML, PME Pension Fund, Invest-NL, Philips, BOM and TNO. The investments of ASML, Philips and PME Pension Fund are an important signal from the Dutch industry partners and their firm commitments to make significant contributions to strengthening the Dutch high-tech manufacturing industry. Invest-NL, BOM and TNO are already among the most active players in deep technological innovation in the Netherlands. In addition to the industrial sector and impact investors, Dutch family offices and the fund manager itself also participate in the fund.
Specifically for seed investments, DeepTechXL received a €9 million loan from the RVO 2021 “Seed Capital Deep Tech” tender of €21 million in total.
DeepTechXL Fund I plans to make approximately 20 seed investments and 15 follow-on investments to fund growth. As such, the fund aims to provide life-cycle financing and support to promising cutting-edge technology companies.
Due to the inherently complex nature of building high-tech companies, access to finance alone is not enough. Therefore, DeepTechXL aims to be much more than just an investment vehicle. Working with industry investing partners, the fund provides high-tech startups and scale-ups with access to knowledge, network, technology, licensing and business development support. The fund aims to introduce launch customers, find supply chain partners, help enter new markets and expand manufacturing. DeepTechXL originated from and will work closely with HighTechXL, the prestigious builder of high-tech companies also backed by ASML, Philips, TNO and BOM.
The fund operates from the High Tech Campus Eindhoven amid Brainport’s high-tech ecosystem, a unique and highly concentrated cluster of knowledge institutes, technology companies, supply chain partners, co- investors and hundreds of technology experts providing active support. DeepTechXL is a long-standing desire of regional players and partners in the sector to provide a leverage effect in the creation of sustainable jobs with high added value. With the involvement of leading tech companies, the initiative will help attract entrepreneurial tech talent.
“Through continuous investment in long-term innovation, ASML plays an active role in building the sustainable competitive advantage of our unique Brainport ecosystem. The fact that DeepTechXL can intensively leverage the strong knowledge base and experience in cutting-edge technology in the region makes this stand out. In this way, we establish the much-needed combination of access to knowledge, talent and funding for promising cutting-edge technology startups and scale-ups. in the Netherlands,” said Peter Wennink, President and CEO of ASML.