{"id":490282,"date":"2024-10-17T10:00:00","date_gmt":"2024-10-17T08:00:00","guid":{"rendered":"https:\/\/innovationorigins.com\/?p=490282"},"modified":"2024-10-17T10:00:00","modified_gmt":"2024-10-17T08:00:00","slug":"how-can-photonics-startups-secure-funding-make-investors-feel-fomo","status":"publish","type":"post","link":"https:\/\/ioplus.nl\/archive\/en\/how-can-photonics-startups-secure-funding-make-investors-feel-fomo\/","title":{"rendered":"How can photonics startups secure funding? ‘Make investors feel FOMO’"},"content":{"rendered":"\n

Urgency, standardization, and collaboration are key to moving Europe’s integrated photonics industry forward. That was one of the main conclusions of day one of the PIC Summit Europe<\/a>. At the photonics integrated circuits (PIC) conference hosted by PhotonDelta<\/a>, industrial and academic leaders shared their vision for the future of photonics.<\/p>\n\n\n\n

The world of photonics is going through a similar journey as artificial intelligence, a field that took decades to break through after its inception in the 1950s. \u201cLike AI, photonics experiences peaks and valleys of hype, skepticism, and gradual progress,\u201d said Laurens Weers. He is PhotonDelta’s CFO and led the panel in which investors\u2014\u00a0and one entrepreneur\u2014\u00a0spoke about challenges surrounding photonics investments and strategies for success.<\/p>\n\n\n\n

The key question was: how can companies successfully secure funding for a business model built around \u201cdeep, deeptech\u201d that has often yet to prove itself?<\/p>\n\n\n\n

The deeptech investment landscape<\/h2>\n\n\n\n

Photonics, like AI in its early years, is often dismissed as a sector that may never really break through. Yet the panel had no doubts about whether the technology would succeed. \u201cThe question is when it will happen. The sector requires long development cycles, which makes getting the right financing crucial,\u201d said Liz Duijves, VC Investor at Invest-NL<\/a>.<\/p>\n\n\n\n

So long-term financing is essential\u2014\u00a0and investors who understand that all the more so. \u201cWe look at the unique technology a company represents so that the long-term investment has intrinsic value. It is critical to find the right partners before you go to market. For us, value creation is much more important than profit,\u201d said Sander Verbrugge. He is a managing partner at Innovation Industries<\/a>, which operates a \u20ac500 million deeptech fund.<\/p>\n\n\n\n

Being honest with your investor is also important. \u201cOf course, you want to paint a nice picture to attract new investors. But you enter into a five-to-six-year relationship. In the European investment landscape, an honest story is fundamental.\u201d<\/p>\n\n\n\n

Strategic exits<\/h2>\n\n\n\n

A recurring theme in the panel was the risk involved in bringing breakthrough technologies to market. Bert Gyselinckx of imec.xpand<\/a> emphasized the importance of strategic exits for PIC companies. Deeptech investors are often more interested in a company’s vision than short-term commercial success, especially in the early stages.<\/p>\n\n\n\n

Duijves believes transitioning from an R&D-focused company to a commercial one is challenging once the technology is in place. \u201cIt’s not just about building the technology; it’s about taking it to market. Photonics companies are, logically, heavily focused on R&D. That shift requires a change of mindset and a cultural transformation within companies. Investors play a crucial role in supporting this transition phase.\u201d<\/p>\n\n\n

<\/a>
<\/div><\/div>
PIC Summit 2024 is about fading boundaries: accelerating the integration of photonics and AI for industry growth<\/div>
Urgency, standardization, and collaboration are key to advancing the Integrated photonics industry in Europe.<\/div><\/div><\/div>\n\n\n

The investor bias<\/h2>\n\n\n\n

Navigating the biases of investors and industry experts is another challenge deeptech companies face. Flo Pattiwael (PhotonVentures<\/a>): \u201cIt is difficult for investors to assess market maturity, especially when experts give conflicting opinions. A lot of technology is still in development. Our job is to bring different expert viewpoints and founders’ perspectives together and create a clear picture.\u201d<\/p>\n\n\n\n

A powerful tool, Gyselinckx said, is creating a sense of FOMO (fear of missing out). \u201cCompared to the U.S., there are fewer venture capitalists (VCs) taking big risks in Europe. When more than three investors are looking at your file, you can use that dynamic to your advantage. Get investors to have FOMO.\u201d<\/p>\n\n\n\n

There is plenty of talent in Europe, but it’s not cheap<\/h2>\n\n\n\n

The panel also addressed the importance of talent in scaling photonics companies. With hubs such as ASML, NXP, and Philips, Europe has no shortage of expertise. However, as companies grow, shifting the focus from technology to solid management is crucial. Verbrugge emphasized that while plenty of talent is available, it does not come cheap. \u201cAt some point, you have to be willing to pay for good talent. As companies mature, there is a need to bring in experienced professionals.\u201d<\/p>\n\n\n\n

The future of photonics<\/strong><\/h2>\n\n\n\n

The panel closed with a hopeful vision for photonics. It also became clear that the road to success requires patient investors and a well-developed innovation ecosystem. Pattiwael: \u201cThere are so many cool applications from smart people. We hope more investors join the ecosystem.\u201d<\/p>\n\n\n\n

In many ways, photonics today resembles the early stages of AI: slow to start but with the potential for transformative change. With the right investments, strategic planning, and a long-term focus, this industry could play a crucial role in the next wave of technological innovation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Urgency, standardization, and collaboration are key to moving Europe’s integrated photonics industry forward. That was one of the main conclusions of day one of the PIC Summit Europe. At the photonics integrated circuits (PIC) conference hosted by PhotonDelta, industrial and academic leaders shared their vision for the future of photonics. The world of photonics is […]<\/p>\n","protected":false},"author":1744,"featured_media":505662,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[83950],"tags":[86533,28208,45972,6597,84160,82082],"location":[6763],"article_type":[43139],"serie":[],"archives":[],"internal_archives":[],"reboot-archive":[79717],"class_list":["post-490282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chip","tag-imec-xpand","tag-innovation-industries-en","tag-invest-nl-en","tag-photondelta","tag-photonventures","tag-pic-summit","location-netherlands","article_type-features","reboot-archive-chip"],"blocksy_meta":[],"acf":{"subtitle":"What challenges do investors see in photonics companies and what strategies lead to success? At the PIC Summit, four leading investors gave an answer.","text_display_homepage":false},"author_meta":{"display_name":"Aafke Eppinga","author_link":"https:\/\/ioplus.nl\/archive\/author\/aafke-eppinga\/"},"featured_img":"https:\/\/ioplus.nl\/archive\/wp-content\/uploads\/2024\/10\/1729000157070.jpeg","coauthors":[],"tax_additional":{"categories":{"linked":["CHIP+<\/a>"],"unlinked":["CHIP+<\/span>"]},"tags":{"linked":["imec.xpand<\/a>","Innovation Industries<\/a>","Invest-NL<\/a>","PhotonDelta<\/a>","Photonventures<\/a>","PIC Summit<\/a>"],"unlinked":["imec.xpand<\/span>","Innovation Industries<\/span>","Invest-NL<\/span>","PhotonDelta<\/span>","Photonventures<\/span>","PIC Summit<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 1 year ago","modified":"Updated 1 year ago"},"absolute_dates":{"created":"Posted on October 17, 2024","modified":"Updated on October 17, 2024"},"absolute_dates_time":{"created":"Posted on October 17, 2024 10:00 am","modified":"Updated on October 17, 2024 10:00 am"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/490282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/users\/1744"}],"replies":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/comments?post=490282"}],"version-history":[{"count":0,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/490282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media\/505662"}],"wp:attachment":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media?parent=490282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/categories?post=490282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/tags?post=490282"},{"taxonomy":"location","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/location?post=490282"},{"taxonomy":"article_type","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/article_type?post=490282"},{"taxonomy":"serie","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/serie?post=490282"},{"taxonomy":"archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/archives?post=490282"},{"taxonomy":"internal_archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/internal_archives?post=490282"},{"taxonomy":"reboot-archive","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/reboot-archive?post=490282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}