LUMO Fund Secures €6M for European Impact Startups
LUMO Fund, a backer of European impact-focused startups, has secured €6 million from Spain’s SETT. The new capital signals continued investment momentum for early-stage companies across the continent, including in the CEE region.
The €6 million commitment from Spain's SETT is part of a larger €100 million LUMO Fund aimed at pre-seed to Series A impact-driven technology startups across Europe. This new fund, managed by Eindhoven-based LUMO Labs, plans to invest in 30 to 35 startups over the next four years. The investment focus is on deep tech, including AI, IoT, and digital security, aligning with UN Sustainable Development Goals like health, education, and climate action. Spain's Society for Technological Transformation (SETT) is a public entity created in July 2023 to manage the country's technology investments, leveraging public funds to attract private capital. The investment in LUMO Fund comes from SETT's Next Tech fund, which is part of Spain's broader Recovery, Transformation and Resilience Plan, financed by the European Union's Next Generation EU program. SETT's model involves co-investing with private companies, taking up to a 49.9% stake to de-risk projects while keeping the private sector in control. Founded in 2016 by tech entrepreneurs Andy Lürling and Sven Bakkes, LUMO Labs provides more than just capital. Portfolio companies are enrolled in a bespoke two-year coaching program designed to validate business models and scale their social and environmental impact alongside financial returns. LUMO Labs' first fund, a €20 million vehicle launched in 2020, invested in 23 impact-driven tech startups. The new, larger fund expands their geographical focus from the Benelux and Germany to also include the Nordics, Baltics, and the Iberian Peninsula, with a special emphasis on Spain catalyzed by the SETT investment. The European private impact investing market is estimated at €190 billion and has more than doubled in the last two years. This move by SETT reflects a broader European strategy of using blended public-private capital to fill funding gaps for early-stage companies, particularly in deep tech and sustainability. LUMO Labs' portfolio includes companies like HULO.ai, which uses AI for water leak detection, and Enatom, an educational software company. Their investment thesis centers on combining emerging technologies like AI, blockchain, and VR/AR to address complex societal challenges.
