The early 20th century was a remarkable era in physical science, characterised by groundbreaking discoveries that reshaped our understanding of reality. The emergence of quantum mechanics and the exploration of the atom not only transformed our perception of the universe but also ignited a technological renaissance that altered the course of human progress.
At the heart of this revolution stood Copenhagen, a hub of innovation and academic excellence. It was here, in the fertile grounds of atomic research, that the element hafnium was first discovered in 1922. Since then, hafnium has become integral to modern technology, contributing to aerospace, electronics, nuclear engineering, and more. Its story exemplifies achievement and underscores Copenhagen’s enduring scientific legacy.
Today, we find ourselves on the brink of a new industrial era, driven by rapid advancements across various natural science disciplines. This wave of knowledge holds the potential to revolutionize society once again, making solutions to global challenges more critical than ever.
It’s with roots in this scientific legacy that we announce the first close of PSV Hafnium, an independent VC fund in the PSV Venture House. The fund has closed at DKK 385 million, including a DKK 185 million commitment from cornerstone investors EIF and EIFO, alongside a strong group of other LPs. The fund size is capped to DKK 600 million and aims to support around 30 companies at fund closure.
With a belief in deep technology for deep impact, the PSV Hafnium fund is designed to unlock the promise of new frontiers in deep tech. Anchored in PSVs long-lasting partnership with DTU (The Technical University of Denmark), PSV Hafnium is perfectly positioned to leverage the rich scientific resources and deep tech potential of the Nordic ecosystem. The fund will be fully dedicated to pioneering impactful solutions, by taking early bets on visionary founders at the intersection of science, engineering and technology. Founders in this space hold the potential to tackle the most vital societal challenges and significantly enhance human livelihoods and planetary welfare. Committed to creating a better world, the fund prioritizes impact and ethics in all endeavors.
As Marjut Falkstedt, CEO of EIF, who is a cornerstone investor in the fund, highlights, “Deep tech is a crucial part of the multifaceted solution to our climate challenges. The EIF’s mission is to ensure that SMEs across Europe can access the necessary funding, particularly in the pre-seed and seed stages. The EIF’s support for this fund will help meet a critical market need and ensure the availability of capital for innovative deep technologies addressing climate and environmental challenges.”
Deep tech as an investment area is on the rise. The surge in deep tech investing is supported by reports from LakeStar, Walden Catalyst, and Dealroom.co in 2023, highlighting that deep tech startups are more likely to reach unicorn status and demonstrate greater capital efficiency than many traditional tech startups. Additionally, a McKinsey report indicates that while European deep tech unicorns require an average of €151 million in funding, tech unicorns require €243 million. We now have the data to dispel myths surrounding deep tech, particularly in the Nordics where PSV Hafnium operates.
Deep tech is thriving, with 2023 witnessing a 20% share of total venture capital investments—an increase of 10% compared to a decade ago. This growth is promising not only for startups and investors but also for our planet and society. However, we remain vigilant; despite positive trends, European GPs face significant challenges as the US and China continue to lead in deep tech investment.
To become a strong force within early investments in breakthrough technologies, specialized venture funds are required who understand the unique challenges and opportunities of deep tech. As noted in BCG’s 2023 report, “An Investor’s Guide to Deep Tech,” investors who grasp these opportunities are well-positioned to diversify their portfolios. The partner team of PSV Hafnium is uniquely positioned to contribute to the deep tech journey, bringing together rich experience from investments in high-tech areas and scientific disciplines.
Investing in early stage deep tech inherently involves technical risk. Evaluations should emphasize market potential and readiness level, including a focus on First-of-a-Kind (FOAK) manufacturing. While a bold vision and substantial intellectual property are important, early stage companies should not become overly fixated on IP. Founders should prioritize demonstrating early customer interest and market need alongside their vision. PSV Hafnium’s experience shows that the right team—especially top-tier R&D talent—is the most crucial factor in advancing a company. This aligns with the strengths that the foundation at DTU provides, since this gives direct access to some of the world’s most promising talent pools.
At PSV Hafnium, these insights inspire us to push the boundaries of what’s possible. We invite those who share our passion for scientific breakthroughs, global challenges, and deep-tech innovations to join us on this exciting journey.
