Tensor Ventures investment news – Tensor Ventures Invests €550k with angels in the University Spin-off DYNANIC

This Czech university spin-off has developed innovative technology that optimizes the use of programmable chips boosting their throughput and simplifying their integration into high-performance applications.

This addresses a critical challenge for technology companies, particularly with the rapid rise of AI, virtual reality, and other high-speed technologies, as well as their security requirements. For Tensor Ventures, this marks the first investment from its newly launched second fund.

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The technology treasure hunters at Tensor Ventures have unearthed a groundbreaking innovation at Brno University of Technology in the Czech Republic.

This unique technology has the potential to play a pivotal role in one of the fastest-growing industries of the future: programmable chips (FPGAs). These chips enable technology companies to reprogram their functions after production, allowing them to adapt to evolving needs and applications.

The importance of programmable chips for technology companies has never been greater especially with the rapid rise of AI, virtual reality and other high-speed technologies.

Unlike traditional factory-programmed chips, programmable chips offer the flexibility needed to keep pace with the fast-evolving demands of modern technology and data center environments.

They breathe life into chips

A revolutionary technology that can "breathe life" into programmable chips has been developed by a team of Czech researchers from Brno University of Technology, led by Pavel Korček.

With over 20 years of experience, the team has created a comprehensive environment that empowers customers to customize chipsets by selecting specific parameters to meet their needs.

Pavol Korček, and continues said, "Programmable gate chips are very difficult to program, few people know how to do it, because it is not a common software development with its standard paradigms. We have acquired this capability over the past two decades, working on unique research on this very topic at the university and within the CESNET association, Based on our experience, we founded a company in late 2021, with the university's ownership, with a vision that the client could use FPGA chips without having to have their own dedicated experts."

Today, that vision has become a reality. DYNANIC’s innovative solution has been licensed and adopted by all major FPGA chip manufacturers, including Intel and AMD.

Global technology leaders like Kakao Corp and Kaloom Networks leverage DYNANIC’s product to accelerate applications in data centers. By utilizing programmable chips, these companies dramatically increase server efficiency and optimize data traffic flows.

The fact that the team is by no means a newcomer to the technology is evidenced by the fact that in recent years it developed the world's first 100 and 400 Gbps throughput cards. Now DYNANIC is even starting to work on technology for 800 Gbps networks, although chips for such extreme speeds are not yet available.

The need for private capital

Pavol Korček and continues said, "And why did the founders choose private sector investment? We want to accelerate the whole process of our entry among the heavyweights of the global chip industry, targeting so-called hyperscaler companies such as Google, Microsoft, Meta, Amazon and IBM, We chose angel investors using the same key. We had a lot of offers for funding, but only some investors had extra experience and valuable contacts, just like Tensor Ventures. For DYNANIC, the investment is a pre-seed round, although the company has also raised just under €400,000 in public funding in previous years.

The first investment of its kind

Roman Smola, co-founder of Tensor Ventures said, "The investment in DYNANIC is a benchmark example of what our existing investors or potential investors can look forward to in the second investment fund we have just opened. Specifically, in this case, it is our first investment in the semiconductor vertical, or software for semiconductors, and also the first investment in a spin-off from a Czech university environment. In our opinion, it is not only in the university environment that a lot of great advanced technologies have grown up that are not visible, but all the more deserving of opening their doors to the world. Specifically, we think DYNANIC is poised to reach out to global icons of the chip industry, as the need for programmable chips is and will become more and more urgent,".

Ondrej Lipold of the Tensor Ventures team that led the investment said, "We believe that similar transfers from university environments can get technology to potential customers faster, and in turn, universities can raise funds from licensing or selling shares to keep top experts on their campus,".

Tensor Ventures recently launched its second fund, targeting EUR 50 million. This fund will support groundbreaking technologies in quantum computing, biotechnology, security, software 2.0, energy, and climate tech, with added opportunities in space technology. The fund has already secured EUR 20 million from the EIF under the National Recovery Plan.

The founders of Tensor Ventures are not investing in DYNANIC alone, but with other angel investors. Specifically, with Premek Starovesky from Czech Republic, Roger Benson from Belgium and Werner Schaefer from the USA. This is a very promising sign for DYNANIC. “At the same time, I am happy that my colleagues and I already have other startups on the table that we think have great potential," concludes another of the founders of Tensor Ventures, Petr Ulvr.

About Tensor Ventures

Tensor Ventures is a global deep tech fund headquartered in Prague and Luxembourg, founded by Roman Smola, Martin Drdul, and Petr Ulvr. The first fund supported revolutionary early-stage deep tech startups, building a portfolio of over 20 companies across Europe, the UK, Israel, the USA, and beyond. Notable successes include Tatum, Veracity Protocol, and QC82 quantum chips.