PSV Hafnium secures backing from EIF and EIFO to invest in early-stage deep tech

Danish venture fund PSV Hafnium lands DKK 185 million EIF and DKK 100 million EIFO commitments in support of deep tech focused early-stage companies targeting societal challenges. The fund is spun out of the venture house PSV’s evergreen pillar PSV Foundry, an affiliated company of DTU, Technical University of Denmark.

PSV Hafnium, the first-ever Danish venture fund dedicated solely to deep tech, has landed a DKK 185 million commitment from the European Investment Fund (EIF) and a DKK 100 million commitment from Export and Investment Fund of Denmark (EIFO) in supporting groundbreaking startups in Denmark and across the Nordic region. With a fund size cap of DKK 600 million, it aims to back science-based clean tech, health tech and next generation industrial solutions, and expects to invest in 30 companies.

The fund is committed to invest at minimum 65% in what EIF terms as ‘Climate Action and Environmental Sustainabilty’. Further, as part of the PSV venture house, and with PSV Foundry as LP in the fund, PSV Hafnium has a close link to DTU. Here the fund is close to scientific experts and innovation, benefitting from the DTU ecosystem. DTU has the past years been ranked as no. one in Europe when it comes to engineering and technology.

Deep tech is one part of the multi-faceted solution for our climate challenges. The EIF’s mission is to make sure that European businesses can access the funding they need, especially in the earliest stages of their development.

European SMEs need access to crucial capital 

“Deep tech is one part of the multi-faceted solution for our climate challenges.” said EIF Chief Executive Marjut Falkstedt. “The EIF’s mission is to make sure that European businesses can access the funding they need, especially in the earliest stages of their development. Our support for this fund will contribute to meeting this critical market need and ensuring the availability of capital for novel technologies that can have a very real impact in addressing climate and environmental challenges.”

Erik Balck Sørensen, CIO at EIFO, added that: “EIFO is committed to leveraging groundbreaking Danish deep tech research for transformative solutions. With the strong support of EIF Denmark now has its first-ever early-stage deep tech fund, designed to meet the segment’s specific need for patient, long-term working capital. The EIF’s sizeable engagement in PSV Hafnium is a recognition of the quality of Danish deep tech research and an endorsement of the PSV Hafnium management team. Through this investment, we hope to fast-track the commercialisation of the most promising deep tech research.”

The Head of the European Commission Representation to Denmark, Per Haugaard, added: “It’s crucial that we secure investments in deep tech companies across the continent, which is exactly what PSV Hafnium strives to do. EU is in a global race to reach climate neutrality and develop the technologies that will shape the global economy for decades to come.”

EIFO is committed to leveraging groundbreaking Danish deep tech research for transformative solutions. With the strong support of EIF Denmark now has its first-ever early-stage deep tech fund, designed to meet the segment’s specific need for patient, long-term working capital.

PSV Hafniums focus alligns with the research environment

At DTU, President Anders Bjarklev looks forward to having an actor like PSV Hafnium, as its investment focus on science and engineering-based technology companies closely aligns with DTU's work: “DTU's vision is to create value for society and the world through research that solves global challenges and supports inventions towards the market. Building bridges between university and venture environments is absolutely essential, which is why it has been crucial for us to support PSV Foundry and the Managing Partners in creating a fund with a 100% focus on deep tech."

The management team will combine relevant scientific skills, venture building and VC investment experience to target relevant companies in the areas of scientific based deep tech, including among others hardware, software and new materials. And with a dual carry structure the management team is incentivized to deliver on the impact promise.

 

EIFs support is instrumental

The founding and managing partners in the fund echo the excitement about the establishment of this new independent fund:

“We are incredibly happy now being able to accelerate early-stage investments in ambitious Danish and Nordic science-based technology companies. EIFs support has shown to be instrumental in ensuring that new and promising deep tech startups will see the light of day. And although we are an independently managed commercial venture fund, we are proud to be able to benefit significantly from our DTU heritage, including its fields of knowledge and expertise. The fund's portfolio companies will be deeply rooted in unique and often patented technology that will give them a global competitive advantage. Domain-wise, this portfolio will have a clear exposure to the green transition, and we are looking forward to benefit from the vast experience coming from EIF, EIFO and its portfolio of highly successful venture funds.”

The fund's portfolio companies will be deeply rooted in unique and often patented technology that will give them a global competitive advantage. Domain-wise, this portfolio will have a clear exposure to the green transition, and we are looking forward to benefit from the vast experience coming from EIF, EIFO and its portfolio of highly successful venture funds.

Investments will be pre-seed and seed stage, typically science-based technology backed by strong intellectual property, validated in a lab and/or relevant environment, as well as run by teams with strong scientific backgrounds. The fund has a broad sector focus justified by its narrow geographical scope, as the team will be mainly sourcing investment opportunities in Denmark, where the team can leverage its connections to Danish universities to access privileged deal flow and support its portfolio companies.