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.

 

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Regional focus - Growth Stage Fund

Europe + Israel.

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Sector focus

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.

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Ticket size

Typically € 10M – 20M in B or C-rounds (growth stage). Minimum ticket size is € 5M.

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Stage

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.

Please submit your pitch deck here

Criteria:

  • 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

Succeed

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.

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