search

The equity investment new fund, which succeeds the existing Luxembourg Future Fund that has reached the end of its active investment period, was presented by the Ministry of Finance, the Ministry of the Economy, Société nationale de crédit et d’investissement (SNCI) and the European Investment Fund (EIF). The launch of LFF 2 highlights the successful cooperation between SNCI and EIF aiming to stimulate the diversification and sustainable development of the Luxembourg economy via funding activities.

This complementarity helps focus investments in innovative technologies that will generate a sustainable and positive impact in key sectors like finance and climate technologies.

Launch of the equity investment fund Luxembourg Future Fund 2“With the launch of the LFF 2, we will pursue a unique partnership that is built on the EIF’s deep expertise of managing public policy focused investment initiatives and the SNCI’s as well as the knowledge of the Luxembourg economy of both the Ministry of Finance and the Ministry of the Economy,” said Minister of Finance Yuriko Backes. “This complementarity helps focus investments in innovative technologies that will generate a sustainable and positive impact in key sectors like finance and climate technologies, thus contributing to the further diversification of our economy.”

Equity investment in climate, fintech, cyber, energy, life sciences and space

Like LFF 1, LFF 2 will target a risk-adjusted financial returns whilst simultaneously stimulating the diversification and sustainable development of the Luxembourgish economy with investments across a range of sectors including climate technologies, fintech, cybersecurity, energy resilience, life science and medical technologies, as well as new space technologies.

LFF 2 will provide an important tool in driving forward the diversification of the Luxembourg economy and the development of its strategic sectors by cooperating with the private sector in pursuit of sustainable innovation.

“From a public policy perspective, LFF 2 will provide an important tool in driving forward the diversification of the Luxembourg economy and the development of its strategic sectors by cooperating with the private sector in pursuit of sustainable innovation here in Luxembourg,” Minister of the Economy Franz Fayot pointed out.

Wider scope for investment

LFF 1 has established itself as a catalyst for international start-ups and investment funds willing to establish their presence in Luxembourg. Its portfolio includes, for example, space data analytics company Spire Global, space monitoring company NorthStar and financial services firm Cyberhedge. In line with the existing LFF 1 initiative, investments under LFF 2 will continue to take place in the form of fund commitments and/or co-investments. However, compared to LFF 1 the investment scope has been broadened and will now:

  • Include investment funds and businesses already established in Luxembourg, thereby allowing these entities to expand local operations further.
  • Target more mature innovative businesses by providing hybrid debt-equity investments. These less dilutive investment instruments may appeal to companies unwilling to give up further equity stakes. Thus, the addition of hybrid debt-equity investments will allow LFF 2 to invest into companies at different stages of development.
  • As such, investments will also be considered for more mature companies, facing a complex and uncertain market environment, including businesses currently exposed to changes in digitalisation, supply chain disruptions or companies transitioning to a low-carbon business model.
Photo credit: Ministry of the Economy

Read more

Webasto invests in new production line in Luxembourg

26-05-2023

Automotive supplier Webasto has been present in Luxembourg since summer 2022 and is turning the facility here into its global centre of competence for smart glazing. The company is now investing in a new Luxembourg-based production line for high-tech glass. The ground-breaking ceremony was held on 24 May 2023.
Read more

House of Sustainability opens in Luxembourg

23-05-2023

The House of Sustainability, which officially launched on 21 April 2023 as a one-stop shop for all sustainable development solutions in Luxembourg, offers and guides companies toward an all-inclusive service offering available in Luxembourg to support their sustainable transition. Companies of all sizes and from all sectors can benefit from a vast ecosystem of sustainable solution providers based in Luxembourg.
Read more

Two Luxembourg start-ups supported by WomenTechEU

15-05-2023

In the framework of the WomenTechEU programme dedicated to innovative deep-tech projects led by women, two Luxembourg companies, supported by Luxinnovation, have received European financial aid.
Read more

Luxembourg: Exceptionally open to business

15-05-2023

In April 2023, Adrian Trömel, Luxembourg’s Foreign Trade Advisor in Texas, co-organised a visit to Luxembourg for a group of Houston-based venture capital, private equity and real estate firms to explore how the Grand Duchy could help them reach the European market. The similar economic interests, including Luxembourg’s openness to business, services and resources for funds and companies looking to grow left a lasting impression on the delegation.
Read more

Innovative companies in Luxembourg are supported by “a strong network”

10-05-2023

Maxime Delmée, Belgian CEO and co-founder of AM 4 AM, a startup specialised in the development of new materials for additive manufacturing and a graduate of the Fit 4 Start acceleration programme in Luxembourg, discusses his entrepreneurial experience in Luxembourg. He explains that Luxembourg’s openness to innovation and its support for startups was crucial to his company’s development.
Read more

Resources all news

Fermer