Cottonwood Technology Fund, a venture capital firm focused on deep tech and hard science startups, has announced the €25 million first close of its fourth fund (Fund IV).
The fund is backed by Caterpillar Ventures, The Merrion Oil & Gas Family, Dutch regional investor NOM, Netherlands Enterprise Agency (RVO), and over 20 other entrepreneurs and family offices.
Expanding Deep-Tech Investments in Europe & the U.S.
Fund IV, targeting a total of €80 million, will continue Cottonwood’s mission to support early-stage B2B startups specializing in hardware technologies across industries like:
- Advanced materials & nanotechnology
- Microelectronics & photonics
- Quantum computing
- Medical technology
- Clean energy solutions
Alain le Loux, General Partner at Cottonwood Technology Fund, emphasized the importance of investing in European deep tech:
“There is an equally disruptive innovation ecosystem in northwest Europe with an even greater need for seed-stage capital than the U.S. Our transatlantic presence helps bring cutting-edge technologies between both continents.”
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Funding Pre-Seed to Early-Stage Hard Tech Startups
Cottonwood typically invests €1M to €3M per round, focusing on startups addressing major global challenges. Previous investments include:
- Skorpios Technologies (semiconductor tech)
- Sarcos Robotics (industrial robotics)
- BayoTech (hydrogen production)
- Infinitum Electric (energy-efficient motors)
- Orange Quantum Systems (quantum computing)
Cottonwood’s Dave Blivin, Founder & Managing Partner, highlighted the fund’s role in closing the gap for deep-tech funding:
“While many VCs have shifted to software over the last 15 years, early-stage hard tech remains an untapped opportunity for disruptive innovation. These companies take longer to scale, so we value the patient support of our investors.”
With €25M secured and a final target of €80M, Cottonwood Technology Fund IV aims to propel the next generation of deep-tech startups, fostering breakthrough innovations across Europe and the U.S..
