25-11-2020

Cottonwood Technology Fund opens third high-tech fund

Cottonwood Technology Fund opens third high-tech fund

The Dutch-American venture capital fund Cottonwood Technology Fund raised € 25 million for its third fund. This first close of Fund III has been raised by multinationals and high net worth individuals. The fund’s capital will be increased to € 75 million over the next 12 months.

High-tech and hardware
Cottonwood invests at a very early stage in high-tech and hardware startups that have patented, disruptive technology with the potential to break through worldwide. Focus areas include photonics, robotics, sensor and nanotechnology, renewable energy, advanced materials and medical technology. There is still a shortage of funding for high-tech in the Netherlands. With its third fund, Cottonwood wants to underline the importance of high-tech for the Dutch economy and employment and hopes that its funding for high-tech startups will lead to replication.

Active in the Netherlands since 2014
Cottonwood was founded in 2010 in the United States by venture capital veteran Dave Blivin. For its second fund, Cottonwood opened its European headquarters in 2014, located at Kennispark Twente in Enschede. For its third fund, Cottonwood again raised millions in the United States to be invested in Dutch start-ups.

Venture capital fund on two continents
We are delighted with the support of our current investors in Fund II. In spite of the corona crisis they have joined Fund III together with 10 new investors from the Netherlands. More than 6 years after opening our office in the Netherlands, we see the advantages of a venture capital fund active on two continents. We bring technologies from the United States to Europe and vice versa. All our investments have been focused on global growth from the start,” said Dave Blivin, Managing Director.

The Cottonwood brand is experiencing strong growth. Like many other regions of the world, the Netherlands has highly innovative start-ups based on technical breakthrough innovations that are struggling to raise the capital they need to build a first prototype, attract the attention of first customers and find investors for the next round. Cottonwood’s willingness to take on this challenge from the earliest phase is crucial for the high-tech ecosystem,” says Alain le Loux, General Partner and responsible for the European headquarters in the Netherlands.

About Cottonwood Technology Fund
The Dutch-American Cottonwood Technology Fund is recognized, by the independent Preqin, as a top-performing early-stage venture capital fund. Cottonwood is one of the few investors in the Netherlands willing to invest in startups without sales and finished products. Cottonwood invests in high-tech and hardware startups with patented, disruptive technology. Focus areas include robotics, photonics, sensor and nanotechnology, renewable energy, advanced materials and medical technology. Current and past investments include SoundEnergy, OPNT, Eurekite, ClearFlightSolutions, Skorpios Technologies, BayoTech, FibeRio (acquired by Clarcor), xF Technologies, Sarcos Robotics, Respira Therapeutics, Infinitum Electric, TriLumina, and Exagen (Nasdaq listing: XGN). For more information: www.cottonwood.vc.

Contact

PO Box 217
7500 AE Enschede
info@kennispark.nl

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Hengelosestraat 500
7521 AN Enschede
info@kennispark.nl

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