New venture fund PSV Hafnium secures backing from EIF and EIFO to invest in early-stage deep tech in Denmark and the Nordics

• The transaction on behalf of EIF, backed by the European Union’s InvestEU programme, is aimed at Denmark and the wider Nordic countries.
• EIFO’s engagement reflects its commitment to paving the way for the commercialization of Danish deep tech research.
• With a fund size cap of DKK 600 million, PSV Hafnium aims to support around 30 companies at fund closure.

Luxembourg/Brussels/Copenhagen, 11 October 2024: 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.” 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.”

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.

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.”

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.

 Background information

The European Investment Fund (EIF): The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. With the InvestEU mandate, European institutions – led by European Commission and EIB Group – aim to mobilise more than EUR 372 billion of public and private investments to finance sustainable investment, innovation and job creation throughout Europe over the period 2021-2027.

PSV Hafnium is a new Danish DKK 600 million deep tech early-stage VC-fund. The fund takes early bets on scientists, engineers and entrepreneurs in deep tech across Denmark and the Nordics. With a comprehensive understanding of the startup journey, and roots at DTU, the management team patiently helps founders scale unproven technological breakthroughs into impactful global solutions. At present PSV Hafnium has invested in four deep tech startups.

PSV: The Venture House PSV (formerly PreSeed Ventures) was born out of DTU over 20 years ago and continues to be based at the university. As a venture house, PSV’s mission is to clear the path for founders who build companies that matter. The hybrid setup, comprising PSV Foundry, PSV Lab, and the two unique venture funds, PSV Tech and PSV Hafnium, sets them free from adhering to a singular method. Rather they rethink existing ways and models to maximise their impact beyond any individual firm or investment.

PSV Foundry: With an evergreen investment approach, PSV Foundry circulates returns into closing funding gaps of the startup ecosystem.

The Export and Investment Fund of Denmark (EIFO): EIFO is the national promotional bank and export credit agency of Denmark combined in one financial institution. Active in over 100 countries, and with a total business volume of more than EUR 20 billion, EIFO provides financial solutions for Danish companies and their global partners, while also investing in startups and funds. We exist to open doors for Danish global business, accelerate the green transition, promote new technologies and develop the Danish defense industry. With our willingness to take risks in financing, EIFO paves the way for those who dare to think bigger.

Press contacts:

 EIB Group: Tim Smit | +352 691 28 64 23 | t.smit@eib.org

European Commission: Ignazio Cocchiere | +32 2 29 82261 | ignazio.cocchiere@ec.europa.eu

PSV Hafnium: Anders Kjær | Tel: +45 7199 9404 | ak@psv.xyz

EIFO: Jon Arskog | Tel: +45 2252 9648  | joar@eifo.dk