Onsight Ventures Launches EUR150 Million Fund and Calls for Enhanced Political Support

The Tyrolean venture capital fund, Onsight Ventures, has unveiled ambitious plans for its second investment fund, targeting a volume of EUR150 million dedicated to innovative start-ups. In a press conference held in Innsbruck, managing directors Jasmin Güngör and Klaus Grössinger emphasized the need for increased governmental efforts in venture capital financing, stating that hundreds of millions of euros are required to foster growth in this sector.

Güngör and Grössinger expressed optimism about achieving the targeted volume within the next one to two years, similar to the success experienced with their first fund launched in 2021. This new fund aims to strengthen the economic landscape of Tyrol, focusing primarily on research and development across Europe.

The fund will continue to target critical technologies, notably in microelectronics, quantum technologies, artificial intelligence (AI), and biotechnology, with the goal of investing in rapidly growing sectors. Güngör remarked on the significant research capabilities in Tyrol, emphasizing the importance of commercializing this expertise. The fund aims to create pathways to develop 'tech champions' from Tyrol, with Grössinger noting the region's leading position in quantum physics and excellence in life sciences.

A key factor in reaching the EUR150 million target is expected to be the European Investment Fund (EIF), which could provide substantial additional capital. Güngör highlighted the potential to leverage up to 50% of the capital raised in the open market through EIF support. However, this assistance is contingent upon a successful application process, which the fund managers are prepared to undertake.

Joining the initiative are seasoned investors Mariana Bozesan and Tom Schulz, both with experience in Silicon Valley, who will contribute to the success of the second fund. The first fund, launched in 2021, successfully raised EUR13 million, investing in 20 firms, including two based in Tyrol.

Güngör and Grössinger noted that the first fund's success has set a solid foundation, with expectations that the second fund will significantly increase the number of company investments. The lifespan of such funds typically spans ten years, and the official announcement of the new fund is scheduled for the upcoming 'Investors Day' at the BTV-Stadtforum in Innsbruck.

In their address, the fund managers identified a considerable gap in state-sponsored venture capital financing in Austria. They stressed the necessity for capital to retain the value generated by the country's technological and scientific advancements. Comparatively, countries like France allocate over a billion euros annually for this purpose, while Austria lags behind countries such as Germany, the UK, and the Scandinavian nations.

Though the new coalition government has proposed a 'master fund' for venture capital, the fund managers urged that it must be implemented effectively to ensure that capital flows into Western Austria. They suggested that the fund should be adequately capitalized, proposing a minimum allocation of several hundred million euros, which should also include contributions from pension funds.