imec.xpand Announces €300m Second Semiconductor Fund

Imec.xpand, a venture capital fund focusing on semiconductor and nanotech startups in Europe, has successfully raised €300 million for its second fund. The fund is dedicated to investing in promising startups and supporting existing companies as they scale up.

Tom Vanhoutte, co-founder and partner at imec.xpand, shared insights on the fund's strategy, stating, "Today we have made seven investments and we expect to make 25. With the second fund, we aim to appeal to larger investors by providing sufficient capital for growth." The fund has the capacity to invest up to €45 million in a single company, although typical investments are expected to be around €30 million.

The first imec.xpand fund, launched in 2017 with the backing of imec, has been a success story. Investing in 23 companies, it has facilitated nearly €1.5 billion in financing and produced two unicorns. The current round, starting with €150 million in 2022 and now totaling €300 million, demonstrates the fund's continued commitment to supporting deeptech startups.

Imec.xpand's investment strategy extends beyond Europe, focusing on global semiconductor startups. Vanhoutte emphasized the importance of collaboration with key players in the US and Taiwan semiconductor hubs. By leveraging networks and partnerships, the fund aims to foster success for European startups in the competitive semiconductor industry.

Providing a substantial stake early on is crucial to imec.xpand's investment approach, aiming to avoid dilution in subsequent funding rounds. Vanhoutte highlighted the fund's involvement in Celestial AI, an early investor in a seed round that has since raised $200 million. Other portfolio companies, such as PsiQuantum and Swave Photonics, showcase the fund's commitment to cutting-edge technologies.

Looking ahead, Vanhoutte expressed optimism about the future of semiconductor startups in Europe. He emphasized the importance of nurturing successful companies to drive technological innovation and create a thriving ecosystem. Imec.xpand's mission goes beyond funding startups; it aims to build companies that will lead the next wave of technological transformation.