PMT (Pensioenfonds Metaal en Techniek) and PME (Pensioenfonds van de Metalektro), on Friday, March 22, announced that they are jointly investing €100M in Dutch deep-tech scale-ups.
Deep-tech refers to advanced technologies that offer solutions to complex societal problems in healthcare, agriculture, energy, and manufacturing. The unique aspect of deep-tech is the integration of innovative, complex technology into these sectors, promising a more sustainable and impactful future.
This investment is being made through a new fund called the “Strategic Partners Fund,” managed by Innovation Industries, the Dutch deep-tech investor in which PME has already invested €175M in previous financing rounds.
€20M in EFFECT Photonics
The Strategic Partners Fund has announced an investment of €20M in EFFECT Photonics, a photonics company based in Eindhoven.
EFFECT Photonics is a spin-off from the Eindhoven University of Technology that specialises in crafting photonic chips that leverage light, not electricity, to transfer information.
The company offers compact integrated solutions using its proprietary technologies—Digital Signal Processing, Forward Error Correction, and Ultra-pure Light Sources.
This investment will enable EFFECT Photonics to expand its activities and further strengthen its position as a leading player in the field of photonics.
Besides Innovation Industries, the Eindhoven-based company also raised funding from Invest-NL Deep Tech Fund and other existing investors
Why Strategic Partners Fund?
Deep tech companies often face challenges in securing financing for their final growth spurt.
These companies tend to have a high degree of technical complexity and longer timelines for market acceptance, which means there is often insufficient capital available in the market.
And here’s where PME and PMT have come up with this initiative in partnership with Innovation Industries.
The pension funds each invest €50M in the Strategic Partners Fund.
These investments promote sustainable development in the Netherlands by attracting talent and creating high-quality jobs.
Marcel Andringa, executive director of balance sheet and asset management PME says, “The Strategic Partners Fund is the next building block in our innovation strategy. PME believes it is important to invest in deep-tech scale-ups from the Netherlands because they have to compete against competitors with deep international pockets. In this way, we know how to retain and strengthen our future makers. They are essential for the competitiveness of the Netherlands. Venture capital is important for the deep tech sector to help these companies come to fruition.”
So far, PMT and PME have already jointly committed €425M to Innovation Industries to invest in start-ups and scale-ups.
PMT: Third largest fund in the Netherlands
Pensioenfonds Metaal en Techniek (PMT) is the largest market pension fund in the Netherlands.
The fund provides services to over 34,000 companies with nearly 420,000 employees accruing a pension.
In addition, the fund also serves participants who no longer accrue a pension with the fund but previously did (around 700,000) and those who are already receiving benefits (220,000).
The total number of participants in the fund is more than 1.3 million. PMT has assets worth over €75B, making it the third-largest fund in the Netherlands in terms of size.
Hartwig Liersch, director of investments at PMT, says, “Deeptech scale-ups create new jobs and generate value for society in addition to economic growth. Due to the complexity and innovative nature of the products, deep-tech companies have higher capital requirements, making financing, especially in the crucial later phase a major challenge. By investing in precisely this phase with the Strategic Partners Fund, we seek to stimulate long-term Dutch technological progress and innovation. Good for our sector and for our participants”
PME: Pension fund for people in metal & tech
PME is the pension fund for people who work in the metal and technology industry, which is one of the drivers of sustainable economic growth, employment, and prosperity in the Netherlands.
The sector employs some 170,000 workers at about 1,400 companies.
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