A EUR 150 million Venture Capital fund for SMEs in the Netherlands

The European Investment Fund and PPM Oost are teaming up to establish a Venture Capital fund of funds for Small and Medium Sized businesses (SMEs) in the Netherlands. The Dutch Venture Initiative (“DVI”) will invest in funds investing in later stage fast growing innovative or high-tech businesses, fundamental to the growth of the Dutch economy.

The fund will target companies in sectors like ICT, cleantech, medtech, renewable energy and life sciences, through primary investments in the next generation of Dutch Venture funds. The DVI is aiming for a first closing of EUR 150 million and will target 10 to 15 investments in the next 4 to 5 years. After the first closing at EUR 150 million, fundraising will continue with other investors aiming to reach a final fund size of EUR 300 million.

This initiative marks an important milestone in establishing a sustainable model to attract additional investors to financing innovation and entrepreneurship in the Netherlands. The contribution of PPM Oost to DVI is supported by the Dutch government.

Commenting on the new initiative, Chief Executive of the European Investment Fund, Richard Pelly said: “Supporting the Venture Capital market in the Netherlands by catalysing additional investors, through an increased number of active Venture Funds, provides a unique and promising opportunity for the next generation of high- tech businesses.

I am convinced that the Dutch government’s objectives and PPM Oost’s expertise coupled with EIF`s experience in the European Venture Capital market will further stimulate entrepreneurship and innovation in the Netherlands.” 

The EIF has considerable experience in setting up and successfully managing technology-oriented Funds-of-Funds across the EU targeting technology sectors including in Germany and the UK.

“The financing of the cooperation between the EIF and PPM Oost by the Dutch government is extremely relevant for Dutch innovative SME’s. This increases the access possibilities to finance. In The Global Competitiveness Report 2012-2013 of the World Economic Forum this access is mentioned as one of the problematic factors for innovation in the Netherlands” - Marius Prins, director of PPM Oost, said.

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance.  EIF primarily designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to venture capital and private equity funds amounted to over EUR 5.4bn at end 2011. With investments in over 400 funds, the EIF is the leading player in European venture capital due to the scale and the scope of its investments, especially in the high-tech and early-stage segments. The EIF commitment in guarantees totalled over EUR 14.7bn in close to 160 operations at end 2011, positioning it as a major European SME loan guarantees actor and a leading micro-finance guarantor. 

About PPM Oost

PPM Oost – the public VC of East Netherlands - invests in promising companies that profile themselves as frontrunners or leaders of the regional economy of the provinces Gelderland and Overijssel who are involved in the top sectors for the Netherlands. On this moment PPM Oost has 130 direct investments and 40 innovation loans in SME’s, mainly in Agrofood, Life Sciences, High tech Materials, Energy and Manufacturing.

Contacts:  

EIF

For further information, please contact David Yormesor, d.yormesor@eif.org, or visit EIF’s website www.eif.org.

PPM Oost

For further information, please contact Marius Prins, marius.prins@ppmoost.nl or visit PPM Oost’s website www.ppmoost.nl.