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.
We are interested in technologies that are in the nascent stages of development, but also in the established mid-market high tech companies. Nurturing technologies that are still in the laboratory is a common practice at Innovation Industries. Nevertheless we don't rule out later stage companies.
We concentrate on innovation in life sciences, physical sciences (physics and chemistry), information technology, and in areas where the converge technology. Our technology specializations include semiconductors, acoustics, pharmaceuticals, medical devices, advanced materials, clean technology innovations, photonics, security, diagnostic and drug discovery platforms, nano- and microtechnologies. These specializations are reflected in our portfolio companies.
In addition to our specializations we are foremost multidisciplinary as are universities. Many, if not most, of the ideas emerging from universities involve two or more basic disciplines. We call this technology convergence and they represent an increasing proportion of our investments.
The Twente Technology Fund invests in the Dutch region of 'Twente'
We are very active investors, which we believe is a requirement to be successful as an investor. We have a special competence in building companies from start-up, often from research originating in academic and research laboratory settings. Our practice is to play an active and supportive board role from the time of initial investment to divestment.
We have served as interim management on numerous occasions to (re) organize a company, consolidate intellectual property and other assets, and catalyse initial management teams around an opportunity. We also cultivate a cross-section of business relationships with our strategic and financial partners that can be useful to our portfolio companies.
We are responsible investors. At the core of everything we do is the promise to provide hands-on guidance and financing to technology ventures that have, or will have, a positive impact on society. All of the companies which we form and in which we invest involve this kind of forward edge science and technology.
We believe in strong syndicates constructed from the earliest round of investment. We raise enough funds to stay through three to four investment rounds. Our syndicate partners for portfolio co-investment rank in the top tier of venture investors, and we have close access to leading technologists for diligence review and advisory services.
We concentrate on bringing to market disruptive innovations in life sciences, physical sciences (physics and chemistry), and information technology, and specialize in the spaces where they converge.
Visit our complete portfolio
