Pension funds join photonic chip maker EFFECT Photonics

EFFECT Photonics is a spin-off from the Eindhoven University of Technology. The company specializes in the development and production of photonic chips, which use light instead of electricity to transfer information. This makes the chips faster, more energy-efficient, and more compact. This follow-on round enables EFFECT Photonics to scale up both development and production and to expand production capacity.

The photonic chip industry is recognized by Invest-NL as one of the critical technologies—alongside, for example, quantum technology and AI—invested in through the Deep Tech Fund. This fund, managed by Invest-NL, totals € 250 million, with € 175 million contributed by the Ministry of Economic Affairs and Climate (EZK) and the remainder by Invest-NL itself.

René Brama, senior investment manager at Invest-NL, comments: "We are extremely satisfied with the progress and management of EFFECT Photonics, confirming that the Netherlands holds a leading position in the world of photonics. The participation of pension funds demonstrates that EFFECT Photonics has formed a robust group of investors with considerable confidence in its future."

The Invest-NL Deep Tech Fund is investing € 10 million in this round, in addition to earlier investments in 2023 and 2021.