Cottonwood Technology Fund

Cottonwood Technology Fund is an early-stage venture capital firm with a distinct focus on deep technology and hard science companies. Based in Santa Fe, New Mexico, with an additional office in Enschede, Netherlands, the firm strategically invests in disruptive technologies, often emerging as spin-outs from national laboratories and universities across both the United States and Europe. Their investment thesis centers on highly defensible intellectual property in sectors such as advanced materials, photonics, robotics, artificial intelligence, and cleantech.

The fund is known for its hands-on approach, providing not just capital but also strategic guidance and access to a robust network to help founders commercialize complex scientific breakthroughs. Cottonwood Technology Fund typically deploys initial checks ranging from $500,000 to $2.5 million, demonstrating their commitment to supporting companies from their nascent stages. They also reserve capital for follow-on rounds, indicating a long-term partnership approach with their portfolio companies as they scale.

Cottonwood has shown consistent growth in its fund sizes, reflecting increasing confidence and capacity in the deep tech ecosystem. Their first fund, Cottonwood Technology Fund I, launched in 2009 with $20 million. This was followed by Cottonwood Technology Fund II at $30 million, Cottonwood Technology Fund III at $60 million, and they are currently raising Cottonwood Technology Fund IV, targeting $100 million. This progression underscores their expanding influence and ability to back more capital-intensive deep tech ventures. Their unique dual-continent presence allows them to tap into a broader pool of innovation, particularly in areas where scientific research is strong.