Effect Photonics can further scale up its production thanks to a 20 million euro investment. Behind the investment are the pension funds PME and PMT.
Dutch-based Effect Photonics has attracted an investment that will allow it to scale up its production further. The company is focused on technological developments in photonics, mainly on developments in networks for tele- and data communication.
Scaling up is difficult for start-ups
Scaling up is often difficult for start-ups specializing in deep technology. At that point, the start-up has already obtained investment money to make the initial development. Investment funds to support that first phase of development are plentiful. Fewer funds are focused on the subsequent phase, where money is needed to scale production.
Pension funds PME and PMT focus specifically on this phase. They confirm the need for deep-tech companies to raise capital. This is partly because of the products’ complexity and innovative nature. Yet the competitive landscape dominated by international companies also plays an important role.
Deep-tech companies have a harder time persuading investors to put down a lot of capital for scaling up. This is because of the risky nature of the investment. The PME pension fund expects a good return on this investment.
2 days ago
