An effective scheme aimed at stimulating investment from business sponsors is essential for the growth of companies in the Netherlands and for solving societal challenges. This Entrepreneurs for Entrepreneurs blueprint aims to address the funding shortfall in early stage startups. Ensure that entrepreneurs reinvest their own capital and knowledge in new businesses so that they can grow more successfully. According to Techleap.nl, an effective reinvestment plan can provide additional financing of at least 150 million euros, rising to 600 million euros annually.
Very few Dutch startups grow to scale, in part due to a lack of investment in the more risky, early stage. The total amount is stagnant and the share of deals in the first stage, at less than 1 million euros, has been on a downward trend for years. This is a problem, not only because successful startups provide employment growth, but also because these companies are finding solutions to major social transformations in climate, care and the circular economy and it is important that we continue here in our country to orient yourself.
Below average investment in the Netherlands
The knowledge and capital of business sponsors, often (former) entrepreneurs, is essential for early stage startups. However, due to the lack of a suitable incentive, the share of angel investment in the Netherlands is much lower than in competing startup ecosystems, the research shows. Due to the regulations in place in the UK and Germany, among other things, the investment climate for business angels is much more developed there than it is here in the Netherlands. Moreover, Dutch business angels point out that there is still a lot of untapped potential, in which taxes play an important role. Based on the total number of business owners, Techleap.nl estimates that the unused capital is at least 150 million euros and can reach 600 million euros annually. This is significant given that the total investments in the first phase of last year were just over 260 million euros.
Techleap.nl shares a report with measures to stimulate business owner investment based on research by PwC: “Untapped Potential in Funding Startups”. Based on country comparisons and Techleap.nl survey results among business sponsors, PwC makes recommendations in the report for the measures that appear most promising to stimulate investment in startups in the Netherlands. It targets novice business sponsors, to stimulate initial investments, and more experienced entrepreneurs, to stimulate additional investments in new businesses.
Dutch startups grow slower
Maurice van Tilberg, Managing Director of Techleap.nl says: “The start-ups that will define the future are now being started. But Dutch start-ups are growing more slowly than neighboring countries due to the growing funding gap in the early years, which is very crucial for ultimate success, in part because To the lack of proper incentive. We have entrepreneurs who want to invest in this future with the right incentives with private funds and the Cabinet which indicates that the government has an important role to play in access to finance. It is time for the Cabinet to put the words into action and come up with an “Entrepreneur Blueprint for Entrepreneurs” Business “appropriate”.
