Netherlands’ startup Astrape Networks raises €7.9M to tackle AI data traffic jams in data centres

Eindhoven-based Astrape Networks, a Dutch deeptech startup focused on improving short-distance data network performance, has completed a €7.9M seed round. This includes a €2.5M grant from the European Innovation Council (EIC). 

The round was co-led by PhotonVentures, Join Capital, and Brabant Development Agency (BOM), with participation from Shift Invest, an impact-driven Dutch VC.

Ewit Roos, General Partner at PhotonVentures, says, “Astrape is solving one of the most urgent bottlenecks in the AI revolution: the data traffic jams crippling modern data centers. Their solution not only boosts performance but also slashes energy consumption — significantly reducing the carbon footprint of AI infrastructure at scale.”

A high-performance networking solution

Astrape Networks was established in 2022 as a spin-off from Eindhoven University of Technology and incubated by HighTechXL. The company focuses on improving datacenter networking by integrating optical and electronic switching. 

Astrape Networks’ technology allows networks to manage 50 per cent more traffic with fewer servers, increases utilisation rates, expands hop capacity, and scales to support over 16 million GPUs/xPUs per network, while reducing energy usage by 60 per cent. 

The company’s solutions target the growing datacenter market, which is expected to reach $624B by 2029, driven by cloud computing, AI, and real-time data processing.

Francesco Pessolano, CEO and co-founder of Astrape Networks, says, “The explosive growth of AI and HPC applications has pushed datacenters to their limits. Our network solutions  optimise server-to-server communication and load balancing, dramatically improving datacenter efficiency and sustainability.”

The leadership team at Astrape includes CEO Francesco Pessolano, who has experience in business development and strategic partnerships; CTO Marco Camilli, a specialist in computer networking with a background in both entrepreneurship and corporate roles, overseeing the company’s core networking technology; and Prof. Nicola Calabretta, an expert in optical communication from TU Eindhoven, responsible for Astrape’s optical technology.

Astrape’s patented innovations focus on technology for multi-tenant datacentres and hyperscalers like AWS and Azure.

Prior to the current round, the company raised €1.6M in pre-seed funding in 2023.

Capital utilisation

The latest funding will support Astrape’s efforts to improve datacenter efficiency, which is critical for the growth of AI and high-performance computing (HPC) infrastructure in Europe.

Sebastian von Ribbentrop, co-founder of Join Capital, says, “Astrape’s unique technology addresses a critical challenge in strategic infrastructure,  specifically in data centres and data communications. We’re proud to support this group of entrepreneurs who have successfully demonstrated the solution’s feasibility in the lab.”

Ivana Sersic Vollenbroek, Senior Investment Manager at Brabant Development Agency (BOM), adds, “Astrape’s technology is a game changer for data centres. Their solution makes data centres more efficient in terms of energy usage, but also the utilisation of the current infrastructure.”

“We see Astrape as a valuable addition to the strong photonic ecosystem of suppliers and application developers in the Netherlands.”