The government of Luxembourg launched a corporate-backed seed fund yesterday aimed at local startups in the digital economy sector.
The vehicle, dubbed Digital Tech Fund, will be managed by Expon Capital and forms part of the government’s $21m Digital Lëtzebuerg initiative launched in December 2015.
Apart from the government, the fund has also attracted commitments from Post Capital, the investment arm of mail and telecommunications firm Post, and High Capital, the corporate venturing unit for IT and business engineering company BHS Services.
Telecoms firm Proximus, satellite company SES, financial services firm Banque Internationale à Luxembourg, law firm Arendt & Medernach and public-law banking institution Société Nationale de Crédit et d’Investissement have also backed the fund.
Digital Tech Fund will target companies that have been operational for less than seven years and have reached at least proof-of-concept stage. It will focus on sectors including cybersecurity, fintech, big data, digital health, telecoms, satellite services and the internet of things.
The fund will also support the commercialisation of publicly funded research and the creation of spinouts, particularly for research conducted at University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust.
Étienne Schneider, deputy prime minister and minister of the economy, said: “In meeting the financing needs of startups in their launch phase, the Digital Tech Fund rounds off the national ecosystem for promoting the development of innovative companies in the field of ICT.
“Augmenting the existing financing instruments and government support measures, the various support regimes of the Ministry of the Economy or the Luxembourg Future Fund, the Digital Tech Fund further enhances Luxembourg’s appeal for startups and will help attract new innovative businesses.”