- EIF has committed EUR 45m in OTB Fund II, which is expected to raise €150 million.
- The commitment from EIF will enable the Fund to continue their investments in the deep technologies sector.
- This agreement is supported by the InvestEU programme.
OTB Ventures, the leading venture capital firm investing in early growth technology businesses announced the launch of the new OTB Fund II. The already launched fund, to which the European Investment Fund (EIF) committed €45 million, is expected to raise €150 million. The new capital will be used by OTB Ventures to directly invest in tech companies developing innovative scientific breakthroughs across four key sectors: enterprise artificial intelligence (AI) automation, space technology, fintech and cybersecurity, with special attention to climatetech solutions.
Prof. Teresa Czerwinska, Vice-President of the European Investment Bank, responsible for all operations under InvestEU, said: “The InvestEU brings much needed financing to support European businesses, boost innovation, deliver new infrastructure projects, and improve environment protection in the European Union. Financing available under InvestEU will help European companies maintain and create jobs, boost economic and social growth, and maintain global competitiveness of the EU economy. Through partnerships like the one with OTB Ventures, the EIB Group will ensure companies across Europe can benefit from InvestEU, accelerate the technological transition in EU countries, and ensure the EU can maintain its position as the global leader in innovation. This will be a solid foundation for sustainable growth and development across the EU which makes InvestEU an investment into a prosperous future for next generation of Europeans.”
Alain Godard, European Investment Fund Chief Executive, said: “European Investment Fund, as a partner of the InvestEU, together with European Commission and European Investment Bank, stands ready to foster innovation, build new markets, strengthen competitiveness and boost jobs and growth. OTB Ventures has built a strong position in the deeptech and InvestEU support will allow for further dynamic development of this sector.”
Paolo Gentiloni, Commissioner for Economy, said: “The InvestEU programme is playing an important role across Europe in mobilising the finance that businesses need to innovate, expand and create jobs. This agreement demonstrates how InvestEU can help Europe remain at the forefront of research and technology. This is of particular importance as we invest to secure the green and digital transitions.”
Adam Niewinski, co-founder and Managing Partner of OTB Ventures, commented: “We are proud to become the first venture capital company to be supported by the new InvestEU initiative. This funding is a tremendous recognition of the quality of work OTB Ventures has undertaken for many years to place deeptech at the heart of its business model. We believe that deeptech is the new frontier of global competition where Europe can actually play a leading role. OTB Ventures will continue to play an active role in further strengthening the sustainable competitive edge of European deeptech ecosystem based on its large talent pool”.
Marcin Hejka, co-founder and Managing Partner of OTB Ventures, commented: “We are thrilled to collaborate with the European Commission and the EIB, sharing our unmatched industry expertise and counsel. Europe's deeptech sector is thriving and is increasingly being appreciated by investors. OTB Fund II has the goal to accompany the process of developing technology to reach market maturity. We are very excited to partner with the exceptional founders working in Europe early on in their entrepreneurial journey”.
Background information
The InvestEU programme provides the European Union with crucial long-term financing by mobilising significant public and private funds to support a sustainable recovery. It helps to generate additional investments in line with key European priorities, such as the European Green Deal, the digital transition and support for SMEs. 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. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
The European Investment Bank (EIB) finances projects in four priority areas — infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs).
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
OTB Ventures is a leading venture capital firm focused on DeepTech in Europe with a unique access to Central and Eastern Europe (CEE) talent pool, investing in early growth, post-product, high-tech start-ups that are developing disruptive technologies. The company’s partners have each over 20 years of entrepreneurial and international venture capital experience, and a proven track record in supporting the expansion of start-ups across international markets. OTB Ventures believes that maintaining dialogue with founders is essential for them to effectively support them. The firm provides guidance, mentorship and advice, as well as strategic support and in-depth market knowledge. OTB Ventures utilizes our industry, financial and personal networks - backed by our strong market reputation as a fair and founder-friendly investor. The company is constantly searching for the next opportunity - and encourage ambitious, driven disruptors to reach out and get in touch with them. OTB Ventures currently have offices in Amsterdam (Netherlands) and Warsaw (Poland).