March 23, 2006 – Capital-E, a venture fund tied to European R&D consortium IMEC, has announced a first capitalization of 35.5 million euros (US $43.1 million), aiming to finance 10-15 European startups developing micro- and nanoelectronics in various sectors over the next five years. Another round of funding is expected to close by the end of the year, bringing total capital to 50 million euros ($60.7 million).

The fund, which was launched in April 2005, includes investments from IMEC’s Fidimec NV unit and various institutional Belgian firms, including the Flemish government’s Arkimedes fund. The short-term focus for the fund is mainly on Flanders, but will gradually expand to seek support of startups across all of Western Europe, the company stated.

With its close ties to IMEC, Capital-E maintains right of first refusal on IMEC spin-off incubation projects. “It is our strong believe that through Capital-E, we will provide a solid base for future spin-off projects based on IMEC’s intellectual property,” stated Gilbert Declerck, CEO of IMEC.