On May 20, 2024, Expon Capital officially announced the final closing of the second generation of the Digital Tech Fund at 19.4 million euros, in which the Luxembourg Government and the Société nationale de crédit et d'investissements (SNCI) participate alongside with BIL, POST Capital, Proximus, SES, Chamber of Commerce, Cargolux as well as a group of private investors.
Expon Capital, a venture capital firm, was chosen in 2016 to manage the Digital Tech Fund, an early-stage fund newly created to support the development of the start-up ecosystem in Luxembourg.
Following the success of the first two vintages which invested in 13 start-ups, the launch of a new vintage was announced in June 2023 with the aim of continuing the fund's mission in supporting the financing needs of innovative start-ups in their early stages.
Given that the commitment from private and corporate investors have surpassed the 15 million euro mark, the Ministry of the Economy increased its commitment from initially 3 million euros in the summer of 2023 to 4 million euros and the SNCI did the same with a total investment of almost 2.3 million euros. Thus, alongside investments from BIL, POST Capital, Proximus, SES, Chamber of Commerce, Cargolux and a few private investors, this second generation of Digital Tech Fund reached the final closing of 19.4 million euros. The funds raised will be invested in innovative companies established less than 7 years ago in Luxembourg or abroad, which commit to developing their presence in Luxembourg. The fund is dedicated to companies developing digital products or services.
By continuing its efforts to support start-ups in the early-stage phase through the Digital Tech Fund, the government aims to increase the number of start-ups in the ecosystem, facilitate innovation, and finance today's best start-ups, which are tomorrow's scale-ups.
The fund has already made its first investment in the company, Videobot, which offers an interactive video solution for medium and large enterprises and revolutionizes the digital customer journey. The company already has more than 100 clients worldwide, including Proximus and PwC. Expon Capital is actively seeking investment opportunities founded by ambitious entrepreneurs.
The Minister of the Economy, SMEs, Energy, and Tourism, Lex Delles, comments: "Luxembourg aims to build a community of entrepreneurs capable of developing innovative solutions to meet current challenges. 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."
The Minister of Finance, Gilles Roth, added: "The completion of the fund-raising in the second generation of the 'Digital Tech Fund' demonstrates Luxembourg's commitment to developing the Luxembourg start-up landscape, including FinTech and artificial intelligence, and contributes to strengthening the competitiveness of the Luxembourg economy, particularly our financial sector. 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. I therefore welcome this initiative which aims to support these young companies in their innovative projects and further diversify our economy."
Alain Rodermann, Managing Partner of Expon Capital, added: "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."
Jerome Wittamer, Managing Partner of Expon Capital, added: "The country has fantastic talents, people currently working for large companies, often leaders in their field. 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 realize 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."
Press release by the Ministry of the Economy