innovation industries raises €500 million for deeptech investment fund
Dutch venture capital fund Innovation Industries has raised €500 million to support deeptech startups in the Benelux and Germany, focusing on groundbreaking technologies.
Significance of the Fund
The €500 million raised by Innovation Industries for its third fund is a substantial boost for deeptech startups, which typically require significant capital due to the complexity and extended development timelines of their products. Deeptech ventures often encompass advanced fields such as artificial intelligence, quantum computing, and advanced materials, which necessitate long-term investments and sustained support.
Geographical Focus
Innovation Industries will direct this funding towards startups in the Benelux region (Belgium, Netherlands, Luxembourg) and Germany. This strategic focus aims to foster technological advancements within these regions, leveraging their robust research infrastructures and burgeoning tech ecosystems. The addition of an office in Munich, announced by partner Chris Sonnenberg, further emphasizes the fund’s commitment to strengthening its European presence and identifying top technology firms.
Investor Confidence
The fund has garnered support from a diverse group of institutional investors, including major Dutch pension funds such as PME, PMT, ABP, and BPM Bouw. Other notable investors include financial institutions like ABN Amro, Athora Netherlands, Rabobank, and regional development agencies such as Oost NL and Brabantse Ontwikkelingsmaatschappij. Their involvement underscores a shared long-term vision for the Dutch and European deeptech ecosystem, combining financial returns with societal impact.
Strategic Collaborations
Innovation Industries maintains close collaborations with technical universities and research institutes, including all major Dutch technical universities and TNO. These partnerships are crucial for identifying and nurturing high-potential startups. Additionally, the fund’s involvement in significant industry projects, such as the collaboration between ASML and TU Eindhoven on semiconductor research, highlights its role in driving forward critical technological innovations.
Future Outlook
With around €900 million in capital under management, Innovation Industries is poised to act as a magnet for groundbreaking technologies across Europe. The fund is not only focused on financial returns but also on addressing societal challenges such as energy supply, healthcare, and sustainability. As partner Harm de Vries noted, the support from pension funds and other investors reinforces the importance of long-term sustainable investments in the deeptech sector.