Technology Development Fund
Description
The Technology Development Fund (TDF), known locally as Tækniþróunarsjóður, stands as Iceland's most active early-stage financier for research and development projects and nascent startups. Operating under the umbrella of Rannís, the Icelandic Centre for Research, TDF plays a pivotal role in fostering innovation within the nation. Unlike traditional venture capital firms that primarily offer equity investments, TDF provides competitive grants, offering crucial non-dilutive capital to promising ventures and research initiatives.
Its strategic objectives are centered on cultivating new knowledge, facilitating its practical application, and driving technological development. The fund aims to stimulate economic growth and enhance Iceland's global competitiveness by supporting projects that demonstrate high potential for innovation. TDF's support spans various stages, from foundational research and experimental development to the initial phases of startup creation, ensuring a broad impact across the Icelandic innovation ecosystem.
The fund's grant structure is categorized to address different project needs. For instance, "Start-up projects" are eligible for grants up to ISK 15 million (approximately $108,000 USD), designed to propel early-stage companies. Larger-scale "Development projects" and "Research projects" can secure more substantial funding, with grants reaching up to ISK 50 million (approximately $360,000 USD). This tiered approach allows TDF to cater to a diverse range of innovative endeavors. In 2023 alone, the fund demonstrated its significant activity by disbursing a total of ISK 2.1 billion (approximately $15.1 million USD) across 80 distinct projects.
By consistently providing essential financial backing, the Technology Development Fund is instrumental in nurturing Iceland's scientific and technological advancements. Its commitment to supporting groundbreaking research and emerging companies ensures a steady pipeline of innovation, contributing significantly to the nation's economic diversification and long-term prosperity.
Investor Profile
Technology Development Fund has backed more than 694 startups, with 0 new investments in the last 12 months alone. The firm has led 689 rounds, about 99% of its total and boasts 14 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Grant, Seed rounds (top funding stages).
- Majority of deals are located in Iceland, United States, United Kingdom.
- Strong thematic focus on Software, Health Care, Manufacturing.
- Typical check size: $36K – $360K.
Stage Focus
- Grant (100%)
Country Focus
- Iceland (92%)
- United States (2%)
- United Kingdom (2%)
- The Netherlands (1%)
- Norway (1%)
- Japan (1%)
Industry Focus
- Software
- Health Care
- Manufacturing
- Information Technology
- Medical
- Biotechnology
- Energy
- Internet
- Medical Device
- Education
Frequently Asked Questions
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