Managed by Expon Capital, the Digital Tech Fund looks to support early-stage startups with the €19.4m closing of its second-generation fund.
The first two vintages of the fund led to investment in 13 startups. This was followed by the launch of another edition, announced in June 2023. Nearly a year later, on 10 June, the Digital Tech Fund reached final close with financing by the government, Société Nationale de Crédit et d’Investissements (SNCI), Banque Internationale à Luxembourg (BIL), POST Capital, Proximus, SES, the Chamber of Commerce, Cargolux, as well as a group of private investors. After the €15m mark was surpassed, the ministry of the economy increased its commitment from an initial €3m to €4m. SNCI did the same with a total investment of almost €2.3m.
“Given the success of the first generation of the Digital Tech Fund, the second generation will continue with the same strategy: the portfolio will consist of early-stage companies, which we will help grow quickly and expand across Europe,” says Alain Rodermann, Managing Partner of Expon Capital.
“The portfolio will consist of early-stage companies, which we will help grow quickly and expand across Europe.”
Alain Rodermann, Managing Partner of Expon Capital.
Government-initiated and privately-managed
The Digital Tech Fund was set-up on the initiative of the ministry of the economy. The management, on the other hand, is carried out by Expon Capital, which was selected in 2016 and has already handled previous generations of the venture. The funds will be invested in companies established less than 7 years ago in Luxembourg or aboard, which are committed to increasing their presence in Luxembourg.
“The country has fantastic talents, people currently working for large companies, often leaders in their field. Some of them have relevant insights into identifying an unmet need in their company or affecting their clients,” tells Jerome Wittamer, Managing Partner of Expon Capital. “If you combine their deep understanding with a clear vision of the most effective solution to solve the problem and the ability to realize it, it can lead to the creation of highly efficient digital solutions and sometimes very successful companies.”
The fund has already made its first investment after backing Videobot. The company, which won Luxembourg’s Startup World Cup regional final, offers an interactive video solution for medium and large enterprises. The startup has more than 100 clients worldwide, including PwC and Proximus.
