PSV Hafnium, based in Lyngby, Denmark, has launched a venture fund focused on early-stage deep tech investments. The fund, with a cap of €80.4 million, targets science-based solutions in clean tech, health tech, and next-generation industrial technologies. This strategic move by PSV Hafnium underscores its commitment to nurturing innovative tech companies at the forefront of addressing global challenges. The fund’s creation is strengthened by significant investments from the European Investment Fund (EIF) and the Export and Investment Fund of Denmark (EIFO), reinforcing its financial foundation and potential impact on the tech landscape.
What is the focus of the fund?
The fund aims to provide pre-seed and seed-stage investments to companies that demonstrate strong intellectual property and have validated their technologies in relevant environments. With a broad sector focus, the fund is primarily sourcing opportunities within Denmark but remains open to other regions. A significant portion of the investment, at least 65%, is earmarked for initiatives in “Climate Action and Environmental Sustainability,” as defined by the EIF. Currently, PSV Hafnium has already invested in four startups, showcasing its active engagement in promoting deep tech solutions.
How does the fund leverage existing partnerships?
Operating within the PSV venture house, the fund benefits from close ties with DTU (Technical University of Denmark), a leading institution in engineering and technology. This partnership provides the fund with direct access to scientific experts and innovation, enhancing its ability to support promising ventures. Anders Bjarklev, President of DTU, emphasized the importance of bridging the gap between university research and the venture environment to create societal value and address global challenges.
In earlier discussions about Denmark’s innovation ecosystem, other reports have highlighted the strategic importance of partnerships between academic institutions and venture funds. DTU’s consistent ranking as a top engineering university in Europe has been a consistent point of emphasis in promoting Denmark’s role in fostering technological advancements. These collaborations have historically paved the way for robust tech ecosystems capable of addressing complex global issues.
The EIF and EIFO play a crucial role in supporting this venture by providing financial backing. The EIF aims to improve access to finance for European SMEs through equity and debt financing instruments. Meanwhile, EIFO, as Denmark’s national bank and export credit agency, invests in startups and funds globally, enhancing Danish companies’ financial capabilities. The combined efforts of these entities are vital in supporting Denmark’s first-ever early-stage deep tech fund.
As emphasized by Erik Balck Sørensen, CIO at EIFO, this fund is designed to meet the unique needs of the deep tech sector by providing patient, long-term capital. The EIF’s commitment to PSV Hafnium reflects confidence in Danish deep tech research and the fund’s management team. The goal is to accelerate the commercialization of impactful research, bringing transformative solutions to market.
By offering a substantial financial platform, PSV Hafnium is poised to make significant contributions to critical areas like clean tech and health tech. This initiative represents a strategic step towards harnessing innovative research for practical and commercial applications, potentially setting a precedent for similar endeavors in other regions. The fund’s launch marks a pivotal moment in deep tech financing, signaling a promising future for technological advancement and investment in sustainable solutions.
