Finding an investor

Finding a business angel

A business angel is someone who invests in businesses for commercial reasons, with the intention to make a profit. A business angel is, or was, a business owner themself, so they are well positioned to assist and support you. Business angels are also known as informal investors. It is not always easy to find a business angel who is right for your business. Use existing networks of business angels and have a look around your own network.

The Netherlands

If you are looking for an investor in the Netherlands, you can use the information provided by the Vereniging van Business Angels Netwerken Nederland (BAN, in Dutch). BAN Nederland includes networks which act as intermediaries or matchmakers between business owners and investors. You can check the BAN Nederland website to see which networks are affiliated and what their objectives are.

The TechLeap.nl website also contains a database where you can find investors.

Europe

Examples of European networks of business angels:

• European Business Angel Network
• Business Angels Europe

Interesting publications

BAN Nederland offers several interesting publications: the first is intended for business owners looking for investors, while the second is designed for investors:

• How do I find an investor? (in Dutch)
• Informal Investment Manual (in Dutch)

Your own network

Since many investors tend to team up with business owners from their own geographic area, it might be worth your while finding an investor within your own network (for example, through your personal network or social media network). You may also choose to enlist your accountant, bank, or other business owners. Make a point of visiting places where these individuals and organisations meet each other. Such as events, trade fairs and exhibitions, and activities organised by business clubs and business associations.

Regional Development Agencies

Regionale Ontwikkeling Maatschappijen (ROM, Regional Development Agencies) aim to strengthen the regional and local economy. Each province has its own ROM. A ROM can provide financing for a company. ROMs focus mainly on innovative and fast-growing companies. There are 9 ROMs in the Netherlands. Find out more about these ROMs and how they can help you with financing.  

Private equity firms

You can also get financing through a private equity firm. Private equity firms manage the assets of institutional investors and investment funds in a fund. From this fund, they invest in companies. This investment is called private equity. Private equity firms usually invest a minimum of €1 to €2 million. Read more about private equity firms.

High-profile investor

A high-profile investor can also inject some cash into your business. However, there are both pros and cons to working with well-known investors. Maaike Bruggeman, known as ‘The Business Trendwatcher’, researches and analyses business trends in the Dutch and international corporate sector, and provides examples.

Actor Leonardo DiCaprio invested a large amount in the Dutch cultured meat company Mosa Meat, while billionaire Bill Gates sank millions into Dutch online supermarket Picnic. Bruggeman says that business owners have a lot to learn from Mosa Meat and Picnic: “These companies are getting media exposure and are involved in product innovation and working on their brand positioning behind the scenes. They also represent a link to the future: sustainability, innovation, and efficiency, plus the potential to expand on a global scale.” On the downside, you also end up with a certain degree of dependence: “Because Picnic really needs that capital to be able to expand."

According to Bruggeman, there are also Dutch celebrities who make smart investments, such as Bas Smit and Nikkie Plessen. “These are not famous people who make random investments. They are born entrepreneurs who preside over strong business empires. If one of them invests in your business, you are not only getting a star to raise your profile, you get their entire team. That is a lot of very knowledgeable people.”

Advantages

An investor can help you generate a lot of publicity. This can benefit your business if your intention is to scale up in a short period of time, enter international markets, or if your loan application was declined by the bank. At the same time, an investor will also share their knowledge and network with you. Yet it is crucial to be aware who exactly is investing in your business, and what impact this can have on your business. Bruggeman: “Check whether the brand identities are compatible. Do you have a win-win situation on your hands? Is this merely a cash injection, or will the investor contribute their knowledge and expertise as well? Will they advise you? And, if so, do you want that kind of involvement? Do they have the kind of track record you can learn from? And will you agree with each other on specific issues in the long term?

Disadvantages

If your investor has a negative reputation or attracts negative media coverage, this could backfire on your business. An example is the Swedish-based company Oatly, which produces oat-based dairy substitutes. In 2020, they received funds from high-profile people such as Oprah Winfrey, Jay-Z, and Natalie Portman. Investment firm Blackstone also invested in the company. This drew a lot of criticism, because environmental and climate activists claimed that Blackstone had previously invested in companies that have been involved in deforestation in the Amazon rainforest. The incident ended up harming the image of both Oatly and the celebrities who invested in the company.

You should also keep in mind that you will always pay in some way if you decide to partner with an investor. For example, the investor might be looking for a percentage stake in the company, control over key company decisions, or a share of the profit. Bruggeman’s advice: “You should always take time to find out what the added value is of such an investor. It could end up being great for your company, but it could also turn out to be a problem.”

Get advice

Help increases your chances of obtaining financing, and with the right advisor and a good financial rationale, you will get your finance application approved in no time. These advisers will help you get started. Do you still have questions? Call the helpline on 088 585 11 11 or ask an expert for advice.

Video: Financing your business

Watch the video Financing your business. It explains the steps you need to take to get financing for your business. And which parties you can turn to.