PSV Tech closes €55M Fund II for Nordic pre-PMF startups

PSV Tech has closed its second fund at €55 million, targeting Nordic startups before they reach product-market fit. The firm, spun out of Denmark’s Technical University of Denmark (DTU), has historically backed deep-tech ventures in their earliest stages, a segment that has seen declining interest from larger institutional investors as funding tightens.

Unlike most venture funds, which prioritize startups with proven traction, PSV Tech’s strategy focuses on pre-revenue or pre-scale companies. This approach stands out in a market where early-stage capital has become harder to secure, particularly for hardware and capital-intensive sectors. The fund’s size—modest compared to recent European defence-tech or AI-focused vehicles—reflects its niche focus. DTCP’s €455 million defence-tech fund, announced last week, and OpenAI’s $400 million startup fund show how investor interest has shifted toward later-stage or sector-specific opportunities.

The close arrives as Nordic startups navigate uneven funding conditions. While sectors like AI and fitness tech—exemplified by Magic AI’s £8 million round—continue to attract capital, others, including India’s space-tech ecosystem, face persistent funding challenges. PSV Tech’s Fund II suggests some investors still believe in backing unproven teams and technologies, though the fund’s performance will depend on whether its bets pay off in a market favoring safer investments.

The firm’s next steps will matter. With no portfolio companies publicly disclosed, the fund’s success hinges on spotting outliers in a competitive field. For founders in the region, it offers a rare opportunity—but one that may test limited partners’ patience.

Sources: tech.eu