Twente Technology Fund
TTF is a specialist fund, targeting companies that are developing commercially promising products and technologies in attractive sectors like Clean Technology, Nanotechnology, ICT and Biomedical Technology.
TTF focuses on seed and early stage companies, but also on pre-seed commercially viable academic projects. The investment size can be up to €2 million per company. In order to provide the necessary financial backing to the company over time and to safeguard the economic and relative interest in the companies, TTF spreads its total investment in each portfolio company over the different (investment) rounds.
TTF invests between € 2-3 million in total per company. This total investment is invested in different investment rounds over a period of two-five years. TTF’s first investment in a portfolio company typically ranges from € 0.5-1 million. After the first investment round, TTF continues to financially support the company by participating in its Series A round with an investment typically between € 0.75-1.5 million and – if applicable – in its Series B round with an investment between € 1-1.5 million. By (co-) investing in follow-up rounds TTF keeps a grip on the conditions in these rounds and prevents (unnecessary) dilution in these portfolio enterprises.
The benefits of this early funding means that emerging breakthroughs in research and technology businesses can be sustained by sufficient venture capital. This is necessary to optimize their chances of success and ultimately provide revenue to TTF’s investors and the research groups involved. Once these companies are established with seed funding, TTF seeks to work with other traditional venture capital companies to partner in the effort to advance these technologies.
TTF’s most interesting ‘asset’ is its special relationship with the University of Twente, itself a cornerstone investor in TTF. Although the Fund operates fully independently, it collaborates closely with the University of Twente in sourcing, creating and financing the universities most promising technologies and know-how. The University institutes and their spin-offs provide excellent investment opportunities in different areas of technology, in particular in the fields of Nanotechnology, Clean Technology, ICT and Biomedical Technology. By combining the resources of the research institutes and the Twente Technology Fund, the Fund is able to facilitate the transfer of technology to the private sector.
The management of TTF is well experienced in guiding and supporting the management teams of its portfolio companies. The management of TTF holds active board positions to further support the portfolio companies post investment.
TTF’s main goal is to generate return for its investors. The effects of its operations, however, are much broader, catalyzing high tech business activities and economic development of the Twente region as a whole. The creation and high-growth of these new spin-out companies benefits local economic development and create many new jobs in the region.