OTB Ventures, a leading early-growth investor in European DeepTech startups, has announced the successful closing of its significantly oversubscribed Fund 2, reaching a total of $185 million. This substantial fundraise signifies a major vote of confidence in Europe’s burgeoning DeepTech ecosystem and positions OTB Ventures at the forefront of its growth.
In a relative news, last month, we reported about Delft deeptech CarbonX which secured €10M for sustainable alternative to graphite.
The Fund 2 builds upon the proven success of OTB’s first fund, which has already delivered impressive results. “This achievement comes despite the market still being somewhat challenging,” said Adam Niewiński, co-Founder and Managing Partner of OTB Ventures. “It builds on the proven success of Fund 1, and our new fund empowers us to further our mission of supporting disruptive DeepTech startups that are leveraging Europe’s outstanding tech talent pool – the biggest natural resource that our continent can offer.”
Investing in Europe’s DeepTech powerhouse
The new fund will target four core sectors critical to Europe’s technological advancement: SpaceTech, Enterprise Automation & AI, Cybersecurity, and FinTech Infrastructure. Mirroring the successful strategy of Fund 1, Fund 2 will primarily focus on Series A investments, providing crucial growth capital to promising startups with validated concepts. However, recognizing the importance of nurturing early-stage innovation, the fund allocates a new 10% to seed funding, allowing OTB to support ventures at their inception. Additionally, over half the capital is reserved for follow-on investments, ensuring continued support for top-performing companies within the OTB portfolio.
This strategic approach has already yielded positive results. Since its first close in November 2022, OTB has made nine strategic investments from Fund 2 across its target sectors. These investments include a Series A investment in KYP.ai, a productivity and task mining platform, reflecting OTB’s focus on fostering enterprise automation solutions. Additionally, seed investments in AI enterprise automation startup akirolabs and enterprise database enrichment company Veridion showcase OTB’s commitment to supporting foundational technologies that enhance business operations.
A recent seed investment in SEMRON, a Dresden-based startup that produces AI chips with the highest compute density, marks a growing focus for OTB Ventures in the critical field of semiconductor technology. “DeepTech is in our blood and has been our core strategy since we founded OTB in 2017,” remarked Marcin Hejka, co-Founder and Managing Partner of OTB Ventures. “This milestone not only marks a significant achievement for our firm but also reaffirms our dedication to fostering innovation and entrepreneurship.”
Strategic partnerships propel growth
The success of Fund 2 is further enhanced by a consortium of prominent investors. The European Investment Fund (EIF), Isomer Capital, and the NATO Innovation Fund (NIF) are among the key backers, demonstrating a collective belief in OTB’s vision and expertise. Notably, the partnership with NIF highlights OTB’s commitment to supporting the development of “dual-use” disruptive technologies with both civilian and defence applications.
“OTB and the NATO Innovation Fund share a passion for deep tech dual-use technologies, investing into ambitious founders to secure an enduring future for the Alliance’s one billion citizens,” stated Andrea Traversone, Managing Partner of NIF. “Our first 1 billion flagship fund invests at the intersection of deep tech, defence, security, and resilience, with themes including energy, quantum computing, autonomy, climate, industrials, space, and biotechnology. OTB fully aligns with our mission.”
A catalyst for Europe’s DeepTech future
OTB Ventures’ impressive fundraise and strategic partnerships solidify their position as a frontrunner in Europe’s DeepTech landscape. With a laser focus on emerging technologies, a proven track record of success, and a commitment to fostering innovation at all stages, OTB’s Fund 2 is poised to play a vital role in shaping Europe’s DeepTech future. As Marcin Hejka emphasises, “This is our largest fund yet… DeepTech is in our blood… This milestone reaffirms our dedication to fostering innovation and entrepreneurship.” With OTB Ventures at the helm, Europe’s DeepTech ecosystem is well-positioned for a period of significant growth and global impact.
