Cottonwood Technology Fund recently announced the first close of its fourth fund, amounting to €80M, aimed at supporting early-stage, IP-driven deep tech startups in the Southwest US and Northwest Europe. Following a report that stated the decline of startups and investment challenges in Dutch tech, the fund seeks to address these issues by providing needed capital. General Partner Alain le Loux explained that the fund's size is an intentional decision based on learned experiences, optimizing their investment strategy in hard tech and B2B sectors.
The announcement of Cottonwood's Fund IV comes amid the State of Dutch Tech report's findings, which revealed challenges and stagnation in early-stage investments in Dutch startups.
Le Loux emphasizes that their €80M fund size is deliberately chosen. This amount allows for a balanced approach between initial investments and proactive follow-ups.
Cottonwood's commitment to investing in hard tech startups stems from their belief that northwest Europe particularly faces a significant need for seed stage capital.
The firm aims to raise €30M in the next year, continuing its focus on supporting disruptive innovations in the B2B space.
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