Collin Arocho
11 January

A little more than a year after announcing the creation of its third investment fund, Cottonwood Technology and its Fund III has come into full bloom. The (pre)seed-stage deeptech and hard science investor has surpassed its 75-million-dollar goal at its recent closing. In all, the fund has attracted support from more than forty limited partners from the US, Germany, Switzerland and the Benelux region, including from the Netherlands Enterprise Agency (RVO) and Fund II investors like KPN Ventures and Caterpillar Ventures.

Seed investment

Cottonwood makes impact investments in companies with patent-based disruptive technologies with the potential to set new industry standards and capture industry leadership positions over time. Fund III will focus on businesses originating across the Southwest USA and Northwest Europe, regions that include numerous national laboratories, major research universities and research centers but get little attention from the traditional venture community. Current investments include companies active in photonics, micro and nanoelectronics, advanced materials, nanotechnology, health sciences, sustainable energy, advanced manufacturing and robotics.

Alain le Loux, general partner of Cottonwood Technology Fund III in Europe, points to new investments in potential global tech leaders such as Sencure (biometric sensor chips), MPower Technology (space-based solar power) and Circular Genomics (circular RNAs for neurological disorders). Fund III is also participating in the fast-growing Fund II portfolio companies Bayotech (distributed hydrogen production) and Infinitum Electric (disruptive electric motors). It joined the latest C-rounds of both companies.