European deep-tech startups, known for their intensive development demands and substantial capital requirements, have received a financial boost with the establishment of a new investment fund by venture capital entity imec.xpand, securing a substantial €300 million. This fund is earmarked for trailblazing sectors such as artificial intelligence, photonics, and medical diagnostic biotechnology.
Tom Vanhoutte, a partner at imec.xpand, emphasizes that the fund is not solely about financial support; it’s a strategic move to nurture companies poised to dominate the forthcoming technological evolution. Imec.xpand has previously backed transformative ventures, focusing on areas including semiconductors and nanotechnology. Collaborating with Imec, the prominent semiconductor research hub in Leuven, Belgium, the fund has cemented its reputation for fostering innovation.
The bulk of the investment for imec.xpand’s latest fund has been sourced from Quaestor Wealth Care, a Roeselare-based asset management firm. Quaestor pools wealth from affluent individuals into a collective investment vehicle, thereby enabling contributions from investors who might not meet the criteria for direct fund investment. This symbiotic approach benefits both the investors and the fund, according to the founders of imec.xpand.
In its second funding round, imec.xpand continues the momentum from a previous round seven years prior, which amassed €116 million and led to investments in 23 high-tech firms. These investments include stakes in companies close to the Leuven research institute’s ecosystem, with two of them — PsiQuantum in the US and potentially Celestial AI — achieving unicorn status, signifying valuations exceeding €1 billion.
Turning its attention to the Dutch market, imec.xpand is particularly interested in the Eindhoven area. It has already planted seeds of growth in companies like Axelera AI and Scil, with Onera also on the list, revolutionizing sleep problem diagnosis. With a new outpost in Amsterdam’s financial district, the Zuidas, imec.xpand is poised to expand its influence in the Netherlands.
