Dutch Defense Ministry Unveils €100 Million Fund for Tech Startups
The Hague, Friday, 13 December 2024.
The Dutch Ministry of Defense has launched SecFund, a €100 million initiative to support startups and enterprises in developing dual-use technologies for defense, offering up to €5 million per company.
Strategic Investment in Defense Innovation
Announced on October 15, 2024, the SecFund (‘Security Fund’) represents a significant move by the Dutch Ministry of Defense to bridge the financing gap for defense-focused enterprises [1]. Research by the European Union has shown that companies in the defense sector face greater challenges in securing risk capital compared to other industries [1]. The fund aims to provide early-stage financing to Dutch startups, scale-ups, and innovative SMEs that align with defense requirements [1].
Dual-Use Technology Focus
SecFund specifically targets dual-use technologies that have applications in both civilian and security sectors [1]. This approach mirrors successful models seen in other defense innovation initiatives, such as NATO’s DIANA program [3]. Examples include noise-reduction technology for both industrial and military applications, and advanced data transmission systems like LiFi, which offers faster capabilities than traditional WiFi [1].
Collaborative Implementation Structure
The initiative represents a partnership between the Ministries of Defense and Economic Affairs, working alongside regional development companies (ROMs) [1]. The Brabant Development Agency (BOM) will manage the fund in collaboration with other regional development companies, leveraging their extensive experience in venture development and investment [1]. This structure aligns with current trends in defense innovation funding, similar to the European Investment Bank’s approach to supporting dual-use technologies [4].
Timeline and Future Impact
The fund is scheduled to begin accepting applications from interested companies in January 2025 [1]. According to State Secretary of Defense Gijs Tuinman, SecFund will support startups and scale-ups during crucial development phases to enhance innovation for a more secure Netherlands [1]. The initiative aims to strengthen the country’s strategic autonomy and economic security while contributing to long-term earning potential [1].