NLC Venture Builder has closed Momentum – a € 2.2 mln fund for private investments -within a month. This fund will be invested in 11 innovative healthtech ventures from NLC’s portfolio. With this new way of funding, investors can easily spread their money and hence their risk, and at the same time build up a broad portfolio of startups.
Considering the short timeframe in which the € 2.2 mln fund was closed, Momentum’s approach seems to be a successful new way of attracting financing for startups. This form of financing offers a solution for the lack of capital funding that start-ups often encounter in the ‘pre-seed’ and ‘seed’ phase of financing. Although the total amount of investment in healthcare is increasing, there appears to be a shift towards investing in ventures that are well past the ‘pre-seed’ and ‘seed’ stages. This results in a structural shortage in capital for early-stage startups.
Bob Guilleaume, CEO of NC Biomatrix B.V. – one of the 11 portfolio companies – comments “ We are very grateful for the funding support via Momentum for our seed phase activities. As mentioned above, this is an extremely important solution to the massive funding gap in early and seed phases of innovative medical startups and provides up with the chance to prove and develop our injectable technology for patients suffering from back pain due to spinal disc degeneration.”