TLDR:
- EFFECT Photonics raised $38 million in a Series D funding round led by Innovation Industries.
- The co-founder of Innovation Industries, Nard Sintenie, discussed the state of the investment climate in the Netherlands and the funding challenges for deep-tech startups.
Yesterday, EFFECT Photonics announced that it raised a Series D funding round of $38 million, with Innovation Industries leading the investment. Innovation Industries is an Amsterdam-based European venture capital fund focusing on impactful deep-tech innovations in sustainability and scalability. Nard Sintenie, the co-founder of the fund, expressed optimism about the Dutch investment climate for deep-tech startups, pointing out that funding for promising start-ups is no longer an issue due to initiatives like BOM and the Dutch government. Despite this progress, Sintenie highlighted the need for more funds like Innovation Industries to support scale-up deep-tech companies that require substantial investments before generating significant revenue.
Sintenie emphasized the importance of valuing young deep-tech companies based on their technology rather than their sales and profits. He cited examples of successful deep-tech companies like EFFECT Photonics and Smart Photonics that have benefited from early-stage investments. Sintenie also discussed the challenges faced by innovative firms like Dynaxion, which went bankrupt due to a lack of financing for a pivotal prototype. He called for more flexible financing options and a stronger ecosystem around deep-tech sectors to facilitate large-scale investments and the emergence of deep-tech unicorns in Europe.
Collaboration between organizations like Innovation Industries and BOM is crucial in supporting younger deep-tech companies and fostering innovation in the Netherlands. By providing expertise and funding, these entities can help accelerate the growth of deep-tech startups and contribute to the development of a thriving ecosystem for technology innovation.
