Managed by Luxembourg-based VC Expon Capital, the Digital Tech Fund looks to support early-stage startups with the €19.4m closing of its second-generation fund in which the Luxembourg Government participates alongside private investors. Funds will be invested in innovative companies dedicated to developing digital products or services. The startups should be established less than seven years ago, in Luxembourg or abroad, and commit developing a presence in the grand duchy.

By continuing its efforts to support start-ups in the early-stage phase through the Digital Tech Fund, the government aims to increase the number of start-ups in the ecosystem, facilitate innovation, and finance today’s best start-ups, which are tomorrow’s scale-ups. Some key sectors are cybersecurity, fintech and regtech, big data, digital health, digital learning or the internet of things.

The portfolio will consist of early-stage companies, which we will help grow quickly and expand across Europe.

Lex Delles, Minster of Economy. “The Digital Tech Fund is a key financing instrument. It allows companies at an early stage of their development to access capital when they often do not have access to traditional sources of financing.”

Alain Rodermann, Managing Partner of Expon Capital: “Given the success of the first generation of the Digital Tech Fund, the second generation will continue with the same strategy: the portfolio will consist of early-stage companies, which we will help grow quickly and expand across Europe.”

Jerome Wittamer, Managing Partner of Expon Capital, added: “The country has fantastic talents, people currently working for large companies, often leaders in their field. Some of them have relevant insights into identifying an unmet need in their company or affecting their clients. If you combine their deep understanding with a clear vision of the most effective solution to solve the problem and the ability to realize it, it can lead to the creation of highly efficient digital solutions and sometimes very successful companies. Our door is wide open to these entrepreneurs.”

Press release: Luxembourg Ministry of Finance