Eindhoven-based EFFECT Photonics, a company that develops highly integrated optics solutions, announced that it has secured $38M (nearly €34.95M) in a Series D round of funding.
The investment was led by Innovation Industries Strategic Partners Fund, backed by Dutch pension funds PMT and PME, along with co-investor Invest-NL Deep Tech Fund and participation from other existing investors.
René Brama, senior investment manager at Invest-NL, says, “We are extremely satisfied with the progress and management of EFFECT Photonics, confirming that the Netherlands holds a leading position in the world of photonics.”
“The participation of pension funds demonstrates that EFFECT Photonics has formed a robust group of investors with considerable confidence in its future.”
Capital utilisation
The infusion of funds will accelerate the progress and market introduction of EFFECT Photonics’ solutions, facilitating the scaling of production to cater to increasing customer requirements.
With a primary focus on enhancing its integrated product portfolio, EFFECT Photonics aims to significantly reduce the costs, size, and power consumption of high-speed fibre optics communication solutions.
Roberto Marcoccia, CEO of EFFECT Photonics, says, “We extend our thanks to Innovation Industries Strategic Partners Fund and our existing investors for their continued confidence in EFFECT Photonics’ mission and products.”
“Investor excitement marks the culmination of a dynamic year of advancements across every facet of our business, reinforcing the market momentum we’ve established in the rapidly growing coherent transceiver market.”
An independent photonic semiconductor company
Founded in 2010 by Dr. Boudewijn Docter and Tim Koene-Ong, 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.
EFFECT Photonics’ focus is on affordability, scalability, and reliability to meet the challenges of 5G, access-ready coherent solutions, and cloud and cloud edge services.
The company’s headquarters are in Eindhoven, the Netherlands. It also maintains offices in the UK, the US, and Taiwan, bolstered by an extensive network of sales partners.
Brief about Invest-NL
Invest-NL is an Amsterdam-based private company financed with public funds. It aims to make the Netherlands more sustainable and innovative. The government (Ministry of Finance) is the company’s shareholder, but Invest-NL decides which companies it will or will not finance.
The Invest-NL Deep Tech Fund invested €10M in EFFECT Photonics’ funding round, supplementing its previous investments in 2023 and 2021.
Invest-NL claims to identify the photonic chip industry as a pivotal technology, alongside sectors like quantum technology and AI. These technologies are supported through the Deep Tech Fund, managed by Invest-NL, with a total investment pool of €250M.
The Ministry of Economic Affairs and Climate (EZK) have contributed €175M, with Invest-NL providing the remainder, to fuel innovation and growth in these strategic areas.
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