The government is freeing up 500 million euros to stimulate the growth of Dutch start-ups and scale-ups, the Ministry of Economic Affairs and Climate announced this week.
On Budget Day, the cabinet already announced that it would invest additional money in innovative companies and startups.
About half of the amount comes from Invest-NL, a national investment company headed by former minister Wouter Bos, of which the Cabinet is a shareholder. The rest of the money is being released by the Ministry of Economic Affairs and Climate.
The plan is to distribute 500 million among three fund initiatives. For example, part of the money will go to funds for innovative scale-ups and knowledge-intensive start-ups. A portion of the millions will also be released for alternative financing for growth companies.
Dutch Future Fund
The Dutch Future Fund (DFF) invests in other venture capital funds so that through those investment funds the amount of capital available to Dutch innovative growth companies is increased. Indeed, an investment from the DFF (and thus from EZK and Invest-NL) can instill confidence in other investors to join as well. The following contributions are foreseen in the DFF: EUR 125 million from Invest-NL, EUR 25 million from EZK and EUR 150 million from the EIF. The EIF estimates that a total of more than 1.5 billion euros can be mobilized through the DFF. Minister Wopke Hoekstra of Finance, as shareholder of Invest-NL, has agreed to the DFF.
Deeptech
For innovations that are knowledge-intensive and therefore also require a lot of capital (referred to here as deep tech), it is often difficult to find financing. These are often new technologies that have not yet been proven and have relatively high risks for investors. The plan for such a fund is an initiative of several regional players, such as Brainport Eindhoven, as well as the Top Sectors and Techleap.nl, and is being shaped jointly by the Ministry of Economic Affairs, Invest-NL and the Regional Development Companies (ROMs). Knowledge-intensive companies that are supported by the ROMs or other market players, and that want to grow further, should be able to appeal to this fund to be further elaborated.
Alternative financing
Entrepreneurs cannot turn to banks alone for capital. There are also alternative funding options, such as through funds or crowdfunding. Alternative financiers have more difficulty attracting funding, while at the same time some entrepreneurs cannot turn to the bank. That is why the government is currently investigating with Invest-NL how alternative financiers can be supported so that more capital becomes available for growth companies through this channel as well.
