Dutch Innovation Gets Boost: Regional Funds and Invest International Join Forces
Netherlands, Monday, 9 September 2024.
Regional development companies and Invest International have aligned their funding strategies to support Dutch startups and scale-ups. This collaboration aims to enhance innovation, facilitate international growth, and strengthen the Netherlands’ economic position globally.
Strengthening Dutch Innovation
In a significant development for the Dutch entrepreneurial ecosystem, regional development companies (ROMs) and Invest International have signed a cooperation agreement. This pact aims to provide enhanced support for startups and scale-ups, particularly those focused on solving global challenges such as climate-neutral energy solutions, sustainable food, and healthcare innovations. The agreement also includes provisions for knowledge sharing, export financing opportunities, and joint trade missions.
Substantial Investment and Support
The ROMs have been instrumental in the growth of innovative startups within the Netherlands. With total fund assets amounting to €2.3 billion, the ROMs invested €219 million in 2023 alone, supporting 372 startups, scale-ups, and innovative small and medium-sized enterprises (SMEs). Notably, over 50% of Dutch companies that attract venture capital receive support from a regional development fund, underscoring the critical role ROMs play in fostering innovation.
Role of Invest International
Invest International, with its investment capital of €833 million, steps in when these startups grow into scale-ups that require international expansion. By collaborating with ROMs, Invest International ensures that companies receive the necessary support to scale their operations globally. The cooperation agreement outlines a strategic review process to identify portfolio companies that qualify for international follow-on investments.
Impact on Dutch Earning Power
Brigit van Dijk-van de Reijt, general director of the Brabant Development Company (BOM), emphasized the importance of this collaboration for the Netherlands’ future earning power. ‘Internationalization, alongside innovation, is the pillar of the Netherlands’ current and future earning power,’ she stated. The partnership aims to give mission-driven startups and scale-ups a flying start, thereby increasing Dutch earning power abroad.
Synergy between ROMs and Invest International
Eelco Benink, Head of Equity at Invest International, highlighted the complementary roles of the ROMs and Invest International. ‘Good cooperation between Invest International and regional development companies is crucial to support Dutch companies in their international growth optimally,’ he said. While ROMs maintain close contact with companies within their regions, Invest International specializes in financing international expansion and trade, creating a synergy that strengthens the international position, competitiveness, and earning power of Dutch companies.