Tech··4 min
Luxembourg Future Fund 3: €270 million, and who can actually benefit
The Luxembourg Future Fund 3, with €270 million, was launched on 4 September 2026. It does not finance startups directly. Here is who can actually access this money, and how.
Translated from French · Lire l'original en français
The Luxembourg Future Fund 3 (LFF3), with €270 million, was presented on 4 September 2026 by the Ministries of Finance and the Economy, the SNCI, the EIB and the EIF. Despite its name, this fund does not pay money directly to startups. It finances venture capital, private equity and, for the first time, private debt funds established in Luxembourg.
A fund of funds, not a startup funding desk
The LFF3 works as a “fonds de fonds” (“fund of funds”): the SNCI and the EIF do not invest in innovative companies themselves, but in the investment vehicles that then finance those companies. The €270 million in capital is split between €180 million from the SNCI and €90 million from the European Investment Fund, according to the Luxembourg government's press release and Silicon Luxembourg. To receive backing, a venture capital or private equity fund must already be established in Luxembourg, or commit to locating its team there. This is the central eligibility criterion, and it shapes how the whole scheme works further down the chain.
LFF3 compared with LFF1 and LFF2: what actually changes
The LFF3 follows the LFF2 (€200 million) and the LFF1 (€150 million), with capacity increasing at each generation, according to Silicon Luxembourg. Two structural changes deserve the attention of industry professionals.
| Fund | Capital | Distinctive feature |
|---|---|---|
| LFF1 | €150M | Venture capital and private equity, management delegated to the EIF |
| LFF2 | €200M | Same asset classes, scheme scaled up |
| LFF3 | €270M | Private debt added, the SNCI now invests in its own name |
The main new feature of the LFF3 is the addition of private debt as an eligible asset class, alongside venture capital and private equity, according to Silicon Luxembourg and Chronicle.lu. In practice, this opens a non-dilutive financing option for innovative companies that, until now, had to rely solely on equity funding rounds. Another notable change: the SNCI now invests in its own name rather than delegating management entirely to the EIF, which gives it a more direct role in choosing the funds it backs.
For a Luxembourg founder: target the right funds, not the LFF3 itself
One point to take on board straight away: a founder cannot apply to the LFF3, since the fund never invests directly in a company. The practical step is instead to identify which Luxembourg venture capital or private debt funds are likely to be backed by the LFF3, then make them a priority when raising funds. These funds benefit from greater investment capacity thanks to the contribution from the SNCI and the EIF, which makes them natural contacts for any company operating in the priority sectors identified by the government:
- Cybertech, deeptech, fintech, healthtech, proptech, spacetech, greentech/cleantech and transport, according to the gouvernement.lu press release.
For a founder in one of these sectors, the practical approach is therefore to map the venture capital funds active in Luxembourg, check their investment track record and, where relevant, ask their managers directly whether LFF3 backing is under negotiation. Further reading on this topic: Luxinnovation's Fit 4 programmes.
For a fund manager: approach the SNCI and the EIF
On the fund management side, location remains the decisive criterion: a fund manager seeking LFF3 eligibility must show that their team is based in Luxembourg, or that it formally commits to locating there, according to gouvernement.lu and Silicon Luxembourg. The addition of private debt as an asset class also widens the type of vehicles that may be approached, beyond conventional venture capital funds alone. Initial contact goes through the SNCI, which now invests in its own name, and through the EIF for the part historically delegated to it. The precise application arrangements are not detailed in the launch press release: interested fund managers should refer directly to the official government press release for the full criteria and the procedure to follow.
Key points before taking action
Gilles Roth, Minister of Finance, and Lex Delles, Minister of the Economy, presented the LFF3 as a tool designed to anchor innovative activities and skilled jobs in Luxembourg, according to gouvernement.lu. For Luxembourg decision-makers, the takeaway is simple: the LFF3 acts upstream, on funds, not downstream on companies, and its effectiveness will depend on the ability of local funds to channel this capital towards the announced priority sectors. This scheme does not constitute individual financing advice: any company or fund manager wishing to pursue this route should check the exact eligibility criteria with the official sources before taking any steps.
