US-based hardware technology startup community Hardware Club has achieved the first close of its inaugural fund, with contract manufacturing services provider Foxconn contributing to the €25m ($28m) fundraising effort.
French state-owned investment bank Bpifrance also supplied capital, as did financial services firm Crédit Mutuel Arkéa, venture captal firm Mistletoe and undisclosed additional backers.
Hardware Club Fund 1 will support seed-stage hardware startups, with a particular focus on France-based businesses. It will in particular seek out opportunities in smart home technology, healthcare technology, connected transport and smart buildings.
The vehicle will invest between €150,000 and €1.5m per deal and the initial capital is expected to last until 2025.
Hardware Club operates offices in San Francisco, Paris and Tokyo. It welcomes applications from hardware companies at all stages, giving members free access to resources such as strategic partners and distributors.
The community’s partners include Foxconn, e-commerce group Amazon, high-end consumer products retailer Harrods, electronics manufacturer Pegatron and retail chains Target and Fnac.
In order to be eligible for investment, a startup will need to be or become a Hardware Club member. The club’s membership currently stands at more than 260 companies across 30 countries, and the fund is expected to back between 10 and 15 businesses per year.
Hardware Club’s 10-strong portfolio so far includes polaroid technology producer Prynt, home robot developer Keecker, personal cloud provider Lima and augmented reality game developer Reach Robotics.