25-09-2024

Regional development agencies and Invest International to co-invest in startups

Regional development agencies and Invest International to co-invest in startups

Innovative companies with international ambitions and activities will have better access to available opportunities for support and investment. The regional development companies (ROMs) and Invest International have signed a cooperation agreement to this end. The agreement also includes agreements on knowledge sharing, export financing opportunities and joint trade missions.

As investors, the ROMs are at the forefront of the lion’s share of innovative startups in the Netherlands. In 2023, the ROMs (total fund assets € 2.3 billion) invested € 219 million in 372 startups, scale-ups and innovative SMEs from their own funds. More than 50% of the companies that attract venture capital do so partly thanks to an investment from a regional development fund. When startups grow into scale-ups, they often do so in an international context. Invest International can continue to invest at this stage and facilitate international growth. Invest International has its own investment capital of EUR 833 million.

Global challenges

The agreements between the ROMs and Invest International focus on start-ups and scale-ups that solve global challenges, such as climate-neutral energy solutions, sustainable food and healthcare innovations. Invest International and the ROMs review which portfolio companies of the regional development companies qualify for international follow-on investment from Invest International. Conversely, Invest International refers companies that are at too early a stage for them to the ROM in that company’s region.

‘Internationalisation, alongside innovation, is the pillar of the Netherlands‘ current and future earning power,’ states Brigit van Dijk-van de Reijt, general director of the Brabantse Ontwikkelings Maatschappij (BOM), on behalf of ROM-Nederland. ‘Invest International’s cooperation with the regional development companies puts us in an even better position to give mission-driven startups, scale-ups and SMEs with internationalisation ambitions a flying start and thus increase Dutch earning capacity abroad.’

‘Good cooperation between Invest International and regional development agencies is crucial to optimally support Dutch companies in their international growth,’ states Eelco Benink, Head of Equity at Invest International. ‘Whereas the ROMs are in close contact with the companies in their region, Invest International specialises in financing international expansion and international trade. Together, we strengthen the international position, competitiveness and earning power of Dutch companies, and contribute to a sustainable and progressive economy.’

Pre-investments

Besides the aforementioned agreements, the agreement also focuses on knowledge sharing between the two parties (including green hydrogen). It also looks at whether Invest International can provide export financing. When companies enter foreign markets, this requires risky pre-investments. Furthermore, Invest International and the ROMs will intensify cooperation on joint trade missions.

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