Luxembourg Future Fund and its follow-up, Luxembourg Future Fund 2, are public-private investment programs managed by the European Investment Fund alongside Luxembourg’s Société Nationale de Crédit et d’Investissement. They aim to diversify and strengthen Luxembourg’s economy through strategic equity investments in innovative companies and venture capital or private equity vehicles. The first program deployed €150 million, and the follow-on initiative allocated €200 million, each balancing risk-adjusted financial returns with backing for sectors crucial to sustainable economic growth. They also aim to draw leading technology firms and fund managers to Luxembourg, reinforcing the country’s position as a regional innovation hub.
Both initiatives implement a dual strategy of fund commitments and direct co-investments in startups and scale-ups, spanning seed through late-stage growth. Every investment must meet Luxembourg’s Sustainable Economic Substance Criteria, emphasizing local economic impact and technological advancement. Investment themes include clean technologies, energy resilience, financial technologies, cybersecurity, life sciences, and space applications, reflecting an effort to foster innovation that broadens Luxembourg’s industrial base and boosts regional competitiveness. Selections for fund managers and direct co-investments occur through open calls for expressions of interest, ensuring a transparent and competitive process.
Clean technology holds a prominent place in the follow-on fund’s portfolio. In July 2024, it backed Lyten, a Silicon Valley firm developing lithium-sulfur batteries with higher energy density than traditional lithium-ion systems and reduced reliance on nickel, cobalt, and graphite. The fund also supports Shift4Good, an impact venture capital vehicle investing in companies working on fleet electrification, micro-mobility, advanced materials, hydrogen solutions, and energy-efficiency software. These commitments illustrate the program’s focus on supporting low-carbon technologies and strengthening European supply chains for future mobility and energy storage solutions.
