Nine companies in the fields of Quantum, Semiconductors, and Photonics, supported by the European Innovation Council (EIC), presented their innovative solutions at a recent ePitching session. The event, which took place on 25 September, garnered the attention of 19 investors from leading venture capital firms. The initiative was part of the EIC Investor Readiness and Outreach Programme which is one of the EIC’s Business Acceleration Services (BAS).
Unveil the selected companies that showcased their ideas in this session
Among the innovative solutions showcased were Equal1, presenting compact quantum computers that can be integrated into existing data center infrastructure. FERROELECTRIC MEMORY GMBH (FMC), introducing their non-volatile ferroelectric memory technology, offering high-speed performance and low cost for AI memory applications. INNATERA NANOSYSTEMS BV, presenting energy-efficient microprocessors that mimic the brain's sensory perception mechanisms. LuxQuanta Technologies SL, showcasing their advanced quantum cryptography solutions for optical communication infrastructure. NewPhotonics Ltd, presenting disruptive photonics chip technology for energy-efficient data centers. QuantumDiamonds GmbH, showcasing their cutting-edge quantum sensing technologies for semiconductor manufacturing. SAS UPMEM, presenting their Processing In Memory (PIM) chips for efficient Generative AI compute. SIPEARL, designing next-generation microprocessors for high-performance computing and AI-focused data centers, and WIDMO Spectral Technologies, specializing in advanced subsurface tomography using spectral ground penetrating radar (SGPR) for various applications.
Expanding Horizons in Advanced Technologies
Meet Sumeet Kumar CEO at Innatera Nanosystems BV, headquartered in Rijswijk (Netherland). Innatera Nanosystems BV developed a groundbreaking chip that integrates powerful AI capabilities directly into sensors. With a focus on meeting the increasing demand for applications involving human-machine interaction and automation, which rely on complex sensors and generate vast amounts of data, their objective is to provide small battery-powered devices with efficient processing and intelligence capabilities for effective data handling.
Sumeet Kumar expressed great satisfaction with the event, as it surpassed expectations and provided valuable opportunities. He highlighted the presence of a wide range of Deep Tech investors who were not only relevant to their business but also actively involved in Deep Tech investments. Sumeet stated, "That is a very positive thing that I found inside of the event." The interactions and follow-ups with the investors were positive and in line with their goals.
Sumeet was confident that the event's exposure and visibility would lead to new opportunities for their semiconductor company, particularly in fundraising. He noted that the event offered targeted visibility to the desired investors, and the initial conversations, feedback, and follow-up indicated a positive trajectory and a promising outcome.
According to him, raising private capital for deep tech companies can be challenging, but support from public entities like the EIC can make the process simpler. He stated, "Access to capital is always simpler when public investors are involved and they definitely provide strategic benefit. Especially around semiconductors, this is contributing to building a strong local ecosystem that will further encourage more capital influx into the domain". Sumeet emphasized the importance of public support in creating sovereign deep-tech capabilities that will eventually allow local companies to achieve global impact. He also highlighted the benefits of instruments like the EIC Accelerator, which provide both equity and non-diluted financing.
Vanessa Diaz, the CEO at LuxQuanta based in Barcelona (Spain) highlights their innovation, affirming that LuxQuanta provides a plug-and-play quantum key distribution (QKD) solution for secure communication, easily installable in existing optical fiber infrastructure. By integrating optical components into a photonic integrated chip, they aim to reduce production costs and make their solution more affordable.
Vanesa Diaz describes her experience with the e-pitching sessions and the support from the EIC accelerator, expressing, "The EIC accelerator is an enormous help not only on the funding side, but also on the visibility side, so being featured as one of the winners gives you enormous improves even further your reputation and solidifies the work that you've done... It's brilliant. I mean, it's a half-hour session and then you just saved yourself weeks of work."
Furthermore, she praises the support they received in crafting their pitching session, reducing years of work into a three-minute presentation. She mentions that the session was dynamic, and the investors showed genuine interest, asking relevant questions.
Vanesa recognizes the significance of public support in relation to private capital. She affirms that with the backing of the EIC accelerator, the funding round is reduced in size and their prospects of obtaining private investment are enhanced.
Exploring Quantum Frontiers: Insights on Investing in Quantum Technologies
Kris Kaczmarek is an investor at 2XN, a quantum-focused venture fund. They invest both in companies developing quantum technologies and those that are able to leverage quantum tech to gain an unfair advantage in their respective industries. Kris has a background in quantum academia and industry, specifically in quantum computing, having been part of the management team at ORCA Computing before moving to VC.
Kris Kaczmarek explains his decision to attend the event, stating, "The selection of startups was very good. It allowed us to compare different approaches to solving some of the same problems and improve our understanding of where quantum offers a real edge."
He also mentions the value of networking and learning about what's happening in the European deeptech ecosystem. While not all startups at the event fitted their quantum investment thesis, he saw potential opportunities for collaboration. As for the EIC portfolio, Kris mentions that winning EIC grants and equity is a useful proof point on a startups’s technology and their ability to execute. He sees the EIC as a platform for companies to showcase their milestones and achievements, which is very helpful to investors.
In terms of venture capital's role in developing the quantum technology ecosystem, Kris emphasizes that VC funding is not a substitute for research funding. VC is best suited for boosting commercial capabilities and scaling companies, while public funding plays a crucial role in testing expensive and complex technologies. Beyond funding, VCs can provide support, expertise, and connections to help companies fill any gaps in their organization and succeed in the market.
He reflects on the event, stating, "It was a great event. It was interesting to see where classical computing companies and other deeptechs are in relation to quantum tech and discover new opportunities that weren't on our radar before."
Olivier Tonneau, a partner and Co-founder at Quantonation, provided an overview of his investment fund. Quantonation is an early-stage firm focused on investing in quantum technologies across all segments. Olivier mentions that they have a portfolio of over 30 companies and are presently in the process of raising a new fund.
Olivier shares why he chose to attend the event, expressing that "We are quite familiar with all the EIC schemes... It's always interesting for us to use that to get in touch with new companies... and have nice sourcing and investment opportunities."
Olivier discusses the significance of the EIC portfolio, remarking that, "Being a recipient of an EIC grant is really the mark of a very serious and well-thought project." He praises the well-built and articulated program that contributes to building a comprehensive quantum ecosystem in Europe.
In terms of investment criteria, Olivier mentions the importance of quality science, a strong team, and a well-planned technological roadmap. He emphasizes the need to transform scientific experiments into products and challenges associated with each stage of development.
Overall, he expresses satisfaction with the event, "It's a very efficient use of our time... It allows us to have new investment opportunities and discover companies we may not have known before." He mentions their plan to systematically screen all EIC recipients in the future for potential investment opportunities.
The selected EIC Fund companies had the opportunity to pitch to a jury of investors from the Atlatic Labs, Amadeus Capital Partners, Cycle Group, Deeptech Equity NL, DTCF - DeepTech & Climate Fonds, Elaia, EuroUS Ventures, Goldman Sachs, IFC - International Finance Corporation, IMEC, LIFTT, Matterwave, MIG Capital, Photon Ventures, Privelege Ventures, Quantonation, Redstone, Samsung Venture, Sopra Steria, TRUMPF Venture, Vektor Partners, and World Fund.
About the EIC Investor Readiness and Outreach Programme
This opportunity is brought to you by the EIC Investment Readiness and Outreach Programme, which is expanding the EIC’s Business Acceleration Services (BAS). The programme aims to enhance the investor readiness of EIC Accelerator innovators, providing them with the necessary tools and knowledge to attract investment and scale their ventures. Once ready, the programme also provides introductions to the best investors in their sector, namely through ePitchings and Investor Days.
DISCLAIMER: This information is provided in the interest of knowledge sharing and should not be interpreted as the official view of the European Commission, or any other organisation.