May this year the American Tier-1 VC firm Cottonwood Technology Fund announced the establishment of its European Fund, Cottonwood Euro Technology Fund (CETF). CETF had raised an initial investment fund of €10 million to invest in early stage high-tech startups. Ray Quintana, Netherland’s lead General Partner at CETF, said back then to StartupJuncture that the sweet spot of their investments lies between 2 and 3 million euro’s, but investments can range form as low as 500K to up to 5 million. Upgrading the fund to presumably €30 million by the end of this year is postponed to ‘1st half next year.’
In the meantime CETF has added a number of interesting partners to its team. CETF announced last week that the three partners of The Source and Job Elders would be joining CETF as ‘special limited partners.’ As a serial entrepreneur Elders founded five MEMS companies. He was previously also the executive director of the Enschede Innovation Fund.
The Source is a company founded by Maurits van Oranje and serial entrepreneur Felix van der Houwen. Maurits van Oranje is a cousin of King Willem Alexander. The Source focuses on supporting startups and established companies with a turnover of 1-150 million euro to grow rapidly. In 2011, serial entrepreneur Michel van Honk joined the company.
“In Cottonwood we have found a kindred spirit in understanding the mechanics involved in taking a great idea to a great product and a great company. We are excited to join forces with them and bring a comprehensive approach to supporting companies at the earliest stages”, says Van Oranje.
The role of special limited partners is to support CETF management in the selection of portfolio investments and subsequently provide these companies the strategic and operational expertise and know-how they need to grow fast.
“It is humbling and an honor to receive the endorsement and support of two very prominent business leaders in The Netherlands so early in the founding of our European Fund,” says Quintana in the announcement of the partnership. “Their success in the Dutch ecosystem and global marketplace, their experience coaching and managing businesses at all stages and their ability to help connect Cottonwood and our companies to the best resources available will be invaluable to insure the success of our European operations.”
Photo Credit: Adnergje