Imec.xpand, a venture capital fund specializing in chips and nanotechnology, has announced the launch of a new $320 million fund aimed at driving innovation in semiconductors and nanotechnology. Based in Leuven, Belgium, this specialized fund collaborates closely with Imec, an R&D hub in nanoelectronics.
The fund will focus on startups that have the potential to significantly disrupt their respective industries. According to Tom Vanhoutte, a partner at Imec.xpand, the goal is to propel semiconductor innovation beyond traditional applications and foster the development of technologies that are a decade ahead of their time. "We are an independent fund that invests only where we can meaningfully contribute to a company's success," Vanhoutte explained. "We aim to elevate these companies and remain significant shareholders throughout their funding journeys."
Imec.xpand supports startups at all stages globally, striving to transform semiconductor and nanotechnology innovations into market-ready solutions. The team's expertise is complemented by access to Imec’s extensive research resources. The fund prioritizes investments in breakthrough technologies including artificial intelligence (AI), machine learning (ML), augmented reality/virtual reality (AR/VR), and photonics. In the life sciences sector, opportunities focused on cell therapy, sequencing, and neuromodulation are of particular interest, as these innovations promise to revolutionize medical diagnostics and treatments.
Vanhoutte noted a keen interest in areas such as AI, biotech semiconductors, and quantum computing. For example, computational advancements in DNA or protein sequencing often depend on semiconductor innovations. The fund’s investment strategy ranges from $15 million upwards. "We embrace technology risk that some VCs shy away from due to their lack of technical expertise," Vanhoutte added.
Imec.xpand emphasizes not just funding startups but also fostering companies that will lead the next wave of technological transformation. "This fund is committed to enhancing the semiconductor industry by empowering startups to expedite bringing innovative technologies to market. Our venture capital approach, combined with a robust international network, facilitates growth amid the global competition for semiconductor leadership," Vanhoutte stated.
Since its inception in 2017, the first Imec.xpand fund has gained robust support from Imec and attracted a dedicated base of international financial and strategic investors. The fund has established a strong track record, investing in 23 companies that collectively secured nearly $1.6 billion in funding, including two unicorns.
Imec.xpand portfolio companies are distinguished by their unique technologies, granting them a competitive edge in global markets. Notable investments include Celestial AI, which raised $175 million to advance its optical compute and memory fabric solution for AI infrastructure, PsiQuantum, a leader in developing practical quantum computers, and Swave Photonics, known for its innovative holographic extended reality chip technology.
"We are in search of globally disruptive companies," Vanhoutte asserted. Imec.xpand’s unique combination of independent management, global outreach, semiconductor-specific focus, and extensive support from Imec differentiates it from other venture capital initiatives.
While the fund avoids investments in China due to geopolitical tensions and regulatory restrictions, it remains open to opportunities worldwide that involve chip technology. Vanhoutte emphasized the importance of collaboration in the development of technology roadmaps, as startups often require specialized expertise to realize their more ambitious projects.
The fund applies technical expertise during due diligence and to assist startups in their early stages, allowing for greater technological risk-taking. "That’s what enables us to navigate technology risks more effectively than others," Vanhoutte noted.
Imec.xpand continues to invest in deep technology research and innovations in holographic technology, maintaining a global focus while acknowledging the strong technical talent in Europe, where government involvement in funding is often more prominent than in the U.S. "We’ve recently seen few U.S. companies with significant government backing," Vanhoutte concluded.
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