Financing with venture capital

Venture capital may be an interesting option for your company. This is money from investors who put their money into innovative or fast-growing companies in exchange for shares. This involves a financial risk for them. Financiers that provide venture capital are, for example, private equity firms or Regional Development Agencies. Other terms for venture capital are high-risk capital or private equity. Private investors are also called business angels.

Private equity firms

Private equity firms manage the assets of institutional investors and investment funds. They make long-term investments in startups and established small, medium, and unlisted companies. The money that private equity firms invest in startups or high-growth companies is also called venture capital. Investment in existing high-growth companies is called private equity.

Private equity means active participation. A private equity firm takes a stake in your company and expects this stake to become worth more in the future. After several years, the private equity company sells the shares again. They invest from a minimum of €1 million. Often, a private equity firm focuses on companies in a particular phase or sector.

A private equity firm offers more than just financing. The firm helps you and your company grow to the next stage with knowledge, experience, and a network. It makes an active contribution to your company.

Regional Development Agencies

Regional Development Agencies (ROMs) operate in every Dutch province. They are provincial private equity companies aimed at strengthening the regional and local economy. ROMs invest mainly in innovative and fast-growing, regional companies. They provide venture capital to entrepreneurs and a ROM can also become a shareholder in companies. They also guide entrepreneurs in their business operations and encourage entrepreneurs to establish themselves in the region. ROMs also attract foreign companies to their region and help regional companies if they want to enter the foreign market. ROMs invest from €250,000.

A ROM's budget varies by province. The eligibility conditions also differ per ROM. For the possibilities within your province and how to apply, see:

•    Groningen, Friesland and Drenthe: NOM Investment and Development Agency for the Northern Netherlands
•    Gelderland and Overijssel: East Netherlands Development Agency (Oost NL) 
•    Brabant: Brabant Development Agency (BOM)
•    Limburg: LIOF
•    Zuid Holland: InnovationQuarter 
•    Flevoland: Horizon, Invest in Flevoland
•    Noord-Holland: InWest (in Dutch)
•    Utrecht: ROM Utrecht Region
•    Zeeland: Impuls Zeeland

The Regional Development Agencies account for a total of around 50% of all venture capital investments in the Netherlands.

More information

Want to know if there is a private equity firm or venture capital fund for your industry or sector? Then check the website of the Dutch Private Equity & Venture Capital Association (NVP). You can read more about private investors in the article on business angels.

Help with business financing

The Financing Guide will help you find your way around financing options. Do you still have questions? Call the helpline on 088 585 11 11 or ask an expert for advice.