Expon Capital officially announced the final closing of the second generation of the Digital Tech Fund on 20 May 2024, said a from the economy ministry published on 10 June. The Luxembourg government, the Société nationale de crédit et d’investissements (SNCI), Banque Internationale à Luxembourg, Post Capital, Proximus, SES, the Chamber of Commerce, Cargolux and a group of private investors participated. The fund, which closed at €19.4m, aims to support the development of the grand duchy’s startup ecosystem.

“Given the success of the first generation of the Digital Tech Fund, the second generation will continue with the same strategy: the portfolio will consist of early-stage companies, which we will help grow quickly and expand across Europe,” commented Expon Capital managing partner Alain Rodermann.

The first two vintages invested in 13 startups and a new vintage was announced in 2023. Funds will be invested in innovative companies dedicated to developing digital products or services. The startups should be established less than seven years ago, in Luxembourg or abroad, and commit developing a presence in the grand duchy.

“Luxembourg aims to build a community of entrepreneurs capable of developing innovative solutions to meet current challenges,” said economy and SMEs minister (DP). “The Digital Tech Fund is a key financing instrument in this context. It allows companies at an early stage of their development to access capital when they often do not have access to traditional sources of financing.”

Videobot, which offers an interactive video solution for companies, is an example of a company in which the fund has already invested. Other firms that have benefitted from the Digital Tech Fund include Cascade, Market Leap, Accelex, Passbolt, Next Gate Tech, Salonkee, Hydrosat and Wizata. Expon Capital’s investment strategy, however, is “sector-agnostic.” Some key sectors are cybersecurity, fintech and regtech, big data, digital health, digital learning or the internet of things.

The closing of the Digital Tech Fund also allows the country to strengthen its competitiveness by committing more resources to the startup landscape. “More than 200 fintech companies currently established in Luxembourg offer our financial institutions new growth opportunities, whether by improving their efficiency or creating new sources of revenue,” noted finance minister (CSV).

“The country has fantastic talents, people currently working for large companies, often leaders in their field,” said , managing partner at Expon Capital, in the press release. “Some of them have relevant insights into identifying an unmet need in their company or affecting their clients. If you combine their deep understanding with a clear vision of the most effective solution to solve the problem and the ability to realise it, it can lead to the creation of highly efficient digital solutions and sometimes very successful companies. Our door is wide open to these entrepreneurs.”