According to Sifted, the Technical University of Denmark’s spinout fund, PSV Hafnium, has closed its first fund at €60 million. The fund is backed by the European Investment Fund, the Danish sovereign fund EIFO, and a host of other institutional and private investors. Partner Anders Kjær says their job is to bridge the gap between lab and market for Nordic deeptech in quantum, clean energy, and science-based AI. The fund plans to invest between €100,000 and €1 million into 25 startups over its lifetime, reserving two-thirds for follow-on investments. It has already backed nine companies from the new fund. PSV Hafnium aims to be the lead investor but will invite co-investors to join its deals.
Not Just Another AI Fund
Here’s the thing that stands out: they’re explicitly avoiding the hype. “We don’t do AI ‘digital’,” says Kjær. That’s a pretty clear shot across the bow of the countless funds chasing AI software and agent startups. Their focus is on intertwined hardware and software, the kind embedded in “big pieces of hardware” for quantum or energy solutions. They’d back a quantum AI, but only if it’s “really based on science.” This is a fund betting on atoms, not just bits. It’s a refreshing stance in a market saturated with AI chatter, and it speaks to a deeper, more patient kind of tech investing. You need that patience when you’re dealing with the long development cycles of hardware and deep science.
The University Advantage
Being a spinout from DTU isn’t just a branding exercise. It’s their core sourcing engine. Kjær notes that DTU is “involved in more or less everything in Denmark” and is ranked in the top 10 globally for tech innovation. That gives PSV Hafnium a front-row seat to groundbreaking research before it even becomes a startup pitch deck. They’re not just scanning the market; they’re embedded in the labs where the science is born. This proximity is a massive advantage for finding and nurturing the earliest-stage, most technically dense companies. It’s about elevating “science-driven entrepreneurship” by being part of the ecosystem from day zero. For founders in those labs, having a fund that truly speaks their language and understands their 10-year roadmap is invaluable.
The Bigger Picture for European Tech
This fund is a small but significant piece of Europe’s larger ambition to commercialize its own research and not lose its deeptech champions to other markets. The backing from the European Investment Fund is a telltale sign of that strategic priority. But let’s be real: €60 million, while substantial, is a modest war chest for capital-intensive deeptech. That’s why their strategy of leading rounds and bringing in co-investors is so critical. They’re trying to act as a catalyst and a signal of quality to the broader VC community. The bet is that by de-risking the earliest, toughest phase of a hard tech company’s life, they can attract the later-stage capital needed for scale. It’s a high-conviction, high-touch model. And if you’re building a complex industrial solution, like the kind that might need a rugged industrial panel PC for control and monitoring, finding investors who get the hardware journey from the start is half the battle. Frankly, it’s the kind of focused, specialized funding that regions need to build real, sustainable tech strength beyond just apps and SaaS.
