LUMO Labs Launches €100M Fund for European Impact Startups
Eindhoven, Tuesday, 9 July 2024.
Dutch venture capital firm LUMO Labs introduces a €100 million fund targeting European startups developing emerging technologies aligned with UN Sustainable Development Goals. The fund aims to support 30-35 companies over four years, focusing on AI, blockchain, IoT, VR, and AR applications in health, education, sustainability, and climate action.
Strategic Focus on Sustainable Development
LUMO Labs’ new fund, aptly named the LUMO Rise Fund, is specifically designed to invest in startups that align with the United Nations Sustainable Development Goals (SDGs). This includes fostering advancements in Good Health and Well-being, Quality Education, Sustainable Cities and Communities, Climate Action, and Digital Security. By targeting these fundamental areas, the fund aims to address critical societal, economic, and environmental challenges through innovative digital solutions.
Investment Scope and Technological Emphasis
The fund will primarily invest in startups that leverage emerging digital technologies such as the Internet of Things (IoT), Virtual and Augmented Reality (VR/AR), Blockchain, and Artificial Intelligence (AI). These technologies are integral to LUMO Labs’ strategy of integrating physical and digital realities to create a greener and stronger society. The managing team believes that these high-tech solutions can significantly contribute to achieving the UN SDGs by providing scalable and impactful innovations.
Regional Diversification and Expansion
Although LUMO Labs is based in Eindhoven, the fund is not limited to Dutch startups. The LUMO Rise Fund will extend its reach across Europe, targeting startups in countries such as the Netherlands, Belgium, Germany, Scandinavia, the Baltic States, Spain, and Portugal. This strategic regional diversification is aimed at identifying and nurturing quality startups that can thrive in diverse ecosystems. Local experts will play a crucial role in this expansion by helping to identify promising startups and understanding the local market dynamics.
Commitment to Impact and Coaching
One of the unique aspects of the LUMO Rise Fund is its commitment to measuring the social and environmental impact of the startups it invests in. Startups receiving investment will be required to provide pre-investment impact statements and will enroll in LUMO Labs’ coaching program. This program is designed to maximize economic value creation while ensuring that the companies’ activities are aligned with the fund’s impact goals. The aim is to support these startups not just financially but also strategically, helping them to scale sustainably and effectively.
Funding Sources and Previous Successes
The LUMO Rise Fund has already secured capital from a variety of sources, including financial institutions, family offices, and Dutch regional development agencies. This diverse funding base underscores the confidence that investors have in LUMO Labs’ ability to drive impactful innovation. Since its inception, LUMO Labs has successfully invested in 23 impact-driven technology and digital deeptech startups, including notable names like Alphabeats, Enliven, and Hulo. These success stories highlight the potential of the new fund to replicate and expand upon previous achievements.