Our Approach in Growth Stage in Europe
Growth Stage – Europe
Disruptive Capital for Disruptive Ideas
Cottonwood Technology Fund invests in Europe & Israel in patent-based, growth stage hard science and deep tech startups.
Our team screens hundreds of pitch decks and technologies per year, but we only invests in average 4 new deep tech startups per year.
Regional focus - Growth Stage Fund
Europe + Israel.
B2B Hard Science & Deep Tech (Hardware), e.g. Photonics, Optics, Micro- & Nanoelectronics, Advanced Materials, Nanotechnology, Sensor Technology, Health Sciences / Medtech, Climatetech / Energy Transition, Robotics & Advanced Manufacturing.
We do not invest in Consumer Products, Software, AI, Fintech, SaaS, Platforms, Apps, Crypto, Pharma/Drug Development.
Typically € 10M – 20M in B or C-rounds (growth stage). Minimum ticket size is € 5M.
Growth stage; revenue generating companies and huge market potential.
We invite patent-based deep tech startups in Europe and Israel in growth stage to send us their pitch deck.
- Is the technology protected by patents and difficult to duplicate?
- Is the technology advancement significant / disruptive?
- Is there a sizeable addressable market?
- Focus on B2B markets?
- Fast growing revenue forecast?
- Is the technology suitable for multiple markets and/or multiple product lines?
- Can we make high margins and do we foresee high exit possibilities?
- Cottonwood’s value-add: how do we leverage our network and is there additional value-add funding with industry-expertise available?
Access to a global network
- Corporate industry connections
- Community of founders
- Entrance to USA and Asia by our own US-office and network partners in Asia
- Access to recruiters to build outstanding teams and M&A specialist to prepare huge exits and IPO’s
Mentoring & Support
- Help with building strategic relationships
- Attract board members from our corporate network
- Act as soundboard on growth and exit strategy
- Hands-on marketing support
Support in funding growth
- Introduce our portfolio companies to own network of large corporates, strategic & financial investors and investment banks
- Support in raising next rounds, pre-IPO rounds, etc. including writing the investment decks
- Professionalize financial reporting
We have successfully built initial enterprise values by more than 5 billion with a 6.0x increase in portfolio value. As of 2022, we have made 21 investments, which raised a total additional capital of over 1.1B and realized a 14x investment leverage.