Xelera Technologies raises €1.5 million to accelerate the next generation of AI-ready data centers. The Darmstadt-based DeepTech startup develops software that boosts the performance and efficiency of data-intensive workloads in cloud and edge environments. Hi Inov led the €1.5 million seed round alongside the European Innovation Council Fund (EIC Fund). The seed funding will enable Xelera to expand its platform, advance SmartNIC-based acceleration, and strengthen its international presence.

Strengthening Europe’s digital infrastructure

With this investment, Hi inov reaffirms its strategy to invest early in innovative B2B technologies that strengthen Europe’s digital infrastructure. The fund focuses on SaaS startups with deeply specialized technologies that tackle structural challenges across climate transition, IT efficiency and resilience, the future of work, and AI‑driven innovation. Xelera embodies this approach. As a European deep‑tech company with strong technical expertise and clear use‑case orientation. It has the potential to create long‑term value for critical business processes and position itself as a future market leader. Xelera was founded in 2018 by Felix Winterstein, Andrea Suardi, and Alexander Lange and is headquartered in Darmstadt.

Accelerating data processing through software-defined acceleration

Xelera develops software that enables organisations to run data-intensive workloads such as AI inference and network functions significantly faster and more efficiently in data centres, in the cloud, and on the edge. Xelera’s platform delivers software-defined acceleration on standard servers and integrates seamlessly into existing IT environments. In response to the growing demand for real-time processing, Xelera has developed two core software solutions that address distinct challenges in AI interference and network security.

Two core solutions: Xelera Silva and Xelera Net

• Xelera Silva is an AI inference platform built to accelerate classical machine learning models in latency-sensitive applications. It reduces response times while maintaining high data processing rates by leveraging advanced hardware accelerator cards and distributing decision-making processes efficiently across server resources. Silva is especially suited to industries that require fast, data-driven decisions, such as financial services and cyber security.
• Xelera Net is a software solution that leverages smart network interface cards (SmartNICs) to accelerate high-speed datacentre networks. It eliminates performance bottlenecks in servers and AI clusters operating in 100GbE-400GbE networks, for example by offloading security functions such as Internet Protocol Security (IPsec) to SmartNICs. In addition, Xelera Net includes software-based IPsec acceleration that scales the workload across CPU cores without requiring any additional hardware.

Expanding the platform and international presence

With the newly secured funding, Xelera intends to accelerate the technological development of its platform. The goal: to deliver a full spectrum data centre software solution that meets the increasing demands of modern data infrastructures. The company aims to expand its product portfolio with features such as virtualization, TLS and NAT offloading, and enhancements for data-intensive applications in AI clusters and Neo clouds. In addition, strategic investments in sales and marketing are planned to strengthen the company’s presence in key markets across Europe and North America.

Voices on the investment

“Xelera is exceptionally well positioned to play a key role in the next generation of software-defined networks and cloud infrastructure. The company’s technology addresses one of the major bottlenecks in today’s data centres and delivers substantial efficiency gains to its customers, offering a real competitive edge in data- and latency-intensive sectors. We believe Xelera will play an important role in shaping the future of digital infrastructure and look forward to supporting the team on that journey”,

comments Wolfgang Krause, Partner at Hi inov.

“Our mission is to make high performance computing accessible to every business in a way that is simple, scalable and efficient. This funding empowers us to advance our SmartNIC solutions and expand globally, enabling more efficient, AI-ready data infrastructures. In turn, we are laying the technological foundation for a new generation of real-time applications across sectors such as telecom, fintech, and industrial automation. We are grateful to have the support of a strong investment partner with a proven track record in the European market. This investment comes at the right time to help us tackle new challenges in the booming datacenter market. Their extensive network of experienced operating partners provides valuable guidance and resources to help us accelerate our growth across Europe and beyond”,

says Felix Winterstein, Co-founder and CEO of Xelera.

Looking Ahead

This investment marks an important milestone in Xelera Technologies’ journey to deliver high-performance, AI-ready infrastructure for Europe’s growing data economy. With Hi Inov Venture Capital and the EIC Fund as strong partners, Xelera is well positioned to scale its technology and shape the next generation of efficient, secure, and sustainable data centers.

Further articles

Darmstadt-based startup Xelera was already honored in 2018 at the Start-up Competition – Digital Innovations. You can find the article here.