apg asset management invests €75 million in future technologies
APG Asset Management is investing €75 million in Innovation Industries Fund III to support deep tech start-ups and scale-ups, primarily within the Netherlands.
Investment Focus and Goals
The primary focus of APG Asset Management’s investment is to foster the growth of deep tech companies, particularly those involved in industrial, medical, food, and agricultural technology. This €75 million investment, made on behalf of pension fund clients ABP and bpfBOUW, aims to ensure that at least 70% of the funds are directed towards Dutch tech companies, including those based in the Eindhoven region. By targeting these sectors, APG hopes to drive innovation and address pressing global challenges such as climate change and biodiversity loss.
Deep Tech Impact
Deep tech start-ups and scale-ups are at the forefront of developing groundbreaking solutions. One notable example highlighted by Carlos Garcia Rivas, a private equity investor at APG, involves a company working on a technique that allows light switches or small devices to harvest energy from their environment, such as movement, light, or temperature differences. These innovative technologies not only push the boundaries of what is possible but also contribute significantly to the Dutch tech ecosystem.
Commitment to the Dutch Tech Ecosystem
APG Asset Management’s commitment to investing in local companies is a strategic move to bolster the Dutch tech ecosystem. By filling the financing gap for start-ups and scale-ups, APG is enabling these companies to scale up their operations and bring their innovations to market. This initiative aligns with the broader ambitions of their pension fund clients to make impactful investments that can drive long-term growth and sustainability.
Risk and Reporting
While the potential for these investments is significant, there are inherent risks, particularly in scaling up production for deep tech companies with new technologies. APG acknowledges this risk but emphasizes the importance of supporting these ventures. To mitigate some of these risks, APG aims to improve reporting methods and impact measurement frameworks, ensuring they remain well-informed about the performance of their investments. This approach not only enhances transparency but also helps in making more informed investment decisions.
Future Prospects
Looking ahead, APG Asset Management has high expectations for the direction of these companies. However, as Carlos Garcia Rivas notes, the path to success is uncertain. Despite this uncertainty, the strategic investment in Innovation Industries Fund III signifies a robust commitment to nurturing future technological advancements. By backing these innovative companies, APG is not only contributing to the Dutch tech ecosystem but also paving the way for transformative solutions that can address some of the world’s most pressing challenges.