Groundbreaking ideas that help change society for the better. Future Tech Ventures in Groningen gives young but promising startups a financial boost.
The Groningen-Eindhoven startup Avoxt is working on a new type of electrolyzer. This electrolyzer contains no membranes. The advantage of such a membrane-free electrolyzer is that it can significantly reduce the production costs of hydrogen. Avoxt is the latest investment by Future Tech Ventures in Groningen. This new investment fund stems from the investment vehicles of UMCG (Triade), RUG (RUG Ventures), Investment Fund Groningen, and NOM.
The four organizations wanted to do more for newly founded startups, says fund manager Niek Huizenga. “Each of them occasionally invested in early-stage startups individually. Sometimes, this didn’t happen, causing highly innovative ideas to remain shelved.” This was the criticism frequently voiced by Prince Constantijn, special envoy for Techleap, regarding Dutch universities. In his view, the vast amount of knowledge within universities was not translating into sufficient value for society.
NOM, Triade, RUG Ventures, and Investment Fund Groningen joined forces with Future Tech Ventures. This strengthened the early financing of companies working on promising ideas or technologies.
Future Tech Ventures is well-funded. The fund holds €20 million (€10 million from the founders and €10 million from the Joint Transition Fund). Its goal is to fund fifty newly established companies over five years, helping them grow.
The demand for such funding was high. News about the fund had been circulating for some time, says Huizenga. “When we finally launched in September last year, we immediately had a list of 100 potential investments.”
The fund invests a maximum of €350,000 per company. However, not everyone with an idea is automatically guaranteed funding, explains investment manager Kyra Weaver.
The first requirement is that a company already exists—investment in mere projects is not an option. Additionally, the company must still be in the development phase, meaning it cannot yet be generating commercial revenue.
There must also be a clear connection to Groningen or Emmen (the JTF region). “We actively seek companies throughout the northern provinces, but their impact—such as job creation—must be in Groningen or Emmen. It is also essential that the company is working on something truly innovative.”
Future Tech Ventures invests at a stage when startups are further developing their technology. Huizenga explains, “We assess whether the technology has significant potential and whether the market is interested.”
A key part of this assessment is also the interest of potential follow-up investors. “We aim to support a company’s future development. With our investment, we want to help the company reach a phase where the next investor sees it as a worthwhile opportunity.”
Nine promising startups have already received funding from Future Tech Ventures. “Another ten are currently in the pipeline,” says Weaver.
Despite thorough preliminary research, investing remains a risk. These startups are still in their infancy. Of the fifty investments Future Tech Ventures aims to make, some will not reach the finish line.
“But we want to get innovation off the ground, and that means taking the leap sometimes,” says Huizenga. “Every company we support must have the ambition to grow and make an impact. But the reality is that some won’t make it. That’s a risk we accept within our fund. We give young companies the chance to start.”
How big is the problem that these companies are solving? Is their solution truly effective? And is the team capable of solving it?
Nine startups have successfully passed this test and are now supported by Future Tech Ventures. They have the potential to make an impact. Impact? Imagine saving thousands of children’s lives each year.
Some examples:
SeaO2: Developing technology to remove CO₂ from oceans—and indirectly, from the air. The captured CO₂ can either be stored or recycled.
Balto: Provides personalized support to patients in adhering to doctor-prescribed therapies.
Fused Button Battery: Every year, thousands of children worldwide die after swallowing button cell batteries. Fused Button Battery has developed technology to make these batteries safer.
IoniQS: IoniQS technology can recover lithium from wastewater, reducing the need for mining this critical resource and conserving water.
