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First Momentum focuses on helping the deeptech sector
The German venture capital firm First Momentum has closed its fund at €35 million. This achievement has opened up new investment opportunities.
The First Momentum fund focuses on the promising deeptech sector. This accounts for 44% of all investments in the technology sector. Despite the high level of interest in deeptech, many startups struggle to raise capital. It is particularly challenging to secure funding at the pre-seed stage, as investors find it difficult to evaluate the scope of projects.
First Momentum’s goal is to support startups in the early stages of development. Starting as a student initiative, the company has become one of the leading players in the European venture capital market. The current fund is the firm’s second, the first having had a capital of €4m. The successful closing of the second fund demonstrates a high level of investor confidence in the team’s strategy and expertise. First Momentum focuses on funding sophisticated technology startups engaged in research and development activities. The company relies on highly innovative projects with long-term potential.
For its second fund, First Momentum has revised its approach to capital allocation:
- Around 35 startups will receive funding, 20 of which have already secured funding.
- The preliminary investment cheques will range in size from €20,000 to €1 million.
- Investors in the fund include family offices, industrial companies, and public institution funds.
First Momentum does not disclose the names of its investors. However, support from the industrial sector demonstrates their interest in developments. They recognise innovation as a vital component of sustainable development within the global market.
Investing relevance
Fundraising for the fund began in 2022, which coincided with a global crisis. Geopolitical uncertainty, rising inflation, and other issues reduced investment activity. The situation gradually stabilised, but only temporarily. The new US tariff policy has jeopardised cross-border flows into the technology industry. Tensions are growing among venture capital firms that focus on capital-intensive technologies with a slow commercialisation process. Furthermore, the development and operation of such projects are closely linked to international cooperation and supply chains.
To maintain stability, First Momentum is focusing its efforts on sustainable sectors. These include industrial automation, energy storage technologies, and grid infrastructure. Against the backdrop of changes in global economic processes, these sectors are becoming increasingly relevant.
Its activities focus on a long-term strategy to support innovative projects that combine scientific research and advanced technologies.