Bilthoven, Netherlands-based Value Creation Capital (VCC), a firm that funds software and managed service companies, announced that it has launched two new investment funds focused on high-growth startups and scale-ups within the fields of High-Tech and AI.
The VCC Deep Tech Fund will back scale-ups with a target size of €50M. The VCC Deep Tech Seed Fund will back seed/(early) scale-ups with a fund size of €10M.
The family offices and tech entrepreneurs in Value Creation Financing’s network provide the majority of the venture capital. Additional investors include TNO Tech Transfer Holding, Oost NL, and Innovatiefonds Overijssel (IFO).
Pauline Albers, investment manager Oost NL Fund Investments, says, “Smart AI solutions are needed for a better, more sustainable and healthier life. We believe the new fund will accelerate the growth of startups and scale-ups working with High-Tech and AI. Oost NL is a partner of the NLAIC and as quartermaster of AI hub Oost-Nederland combined with University of Twente and Radboud University Nijmegen are an important source of VCC investments.”
Brief about the Funds
VCC will focus on a combination of High-Tech and Artificial Intelligence (AI). Within Deep Tech, the firm focuses on major themes, namely Integrated Optics/Photonics/Nano technology, Medical Instrumentation & Analysis, Industry 4.0, Governance Risk Compliance & Cyber Security, as well as Quantum Computing infrastructure.
In recent years, VCC has built an “impressive” Deep Tech portfolio with companies, including Optics11, Fizyr, SenseGlove, UReason, Amsterdam Scientic Instruments (ASI), Confocal, and InProcess LSP. The firm aims to capture the opportunities in this segment by being able to ‘invest through’ from (early) Scale-Up to Growth.
VCC Deep Tech Seed Fund and the VCC Deep Tech (Scale Up) Fund are VCC’s third and fourth funds alongside Security of Things Fund (2016) and TechNano Fund (2015).
Why invest in AI & High-Tech?
According to VCC, smart machines, whether virtual or physical, will become more advanced and capable of acting on their own. And thereby support professionals and scientists in very important public issues such as developing new (personalised) medicines, fulfilling tasks when labour is scarce and increasing our safety.
Companies developing novel ground-breaking technologies can be found in the Deep Tech industry. As a result, the industry is far less susceptible to economic cycles than other industries.
The Netherlands has a significant foothold in Deep Tech thanks to its Technical & Beta Universities, prominent institutes such TNO, AMOLF, NIKEF, ICAI, and Mesa+, and a High-Tech sector centred around university cities. With its resources and contacts, VCC hopes to further encourage entrepreneurship in these fields.
Willem van den Berg, managing partner at VCC, says, “Right now, we see a huge growth of the tech sector where AI has a driving role. We have already built a portfolio of around 15 companies in this domain with strong growth and huge market opportunities. The NL Deep Tech sector has particularly good investment opportunities.”
About Value Creation Capital
VCC was founded in 2005 by serial entrepreneurs from the ICT industry. They started numerous innovative ICT companies, developed them and finally sold them successfully.
VCC (co-)funds software and managed service companies. The firm has backed more than 40 companies so far, out of which 17 of them have been successfully sold. VCC distinguishes itself by applying its methodology of value creation with active management support.