Venture Capital funds
A Venture Capital fund is an investment fund that focuses on high-risk investments in innovative and/or fast-growing companies. Usually these companies are active within a particular sector or industry. Read how it works.
Companies can apply to the Venture Capital fund for financing. The starting capital lies around €200,000, in exchange for shares. The average investment is between 1 and 3 million euros.
How it works
A Venture Capital fund receives hundreds of applications per year. It only selects the most promising proposals. The fund's main aim is to generate a return on investment (ROI) for its participants. To achieve this, they are looking for your company's shares to increase in value over time. And they will sell their shares on to companies or other financiers in 3 to 7 years' time, to realise the ROI. This is their exit strategy. The capital managed by Venture Capital funds is also called private equity.
Applying for funding from a Venture Capital fund
If you are planning to approach a Venture Capital fund, it is essential that you learn how they assess and invest. Investors like to see that you can understand their position and view the proposal from their perspective too. Later in the process, negotiations and agreements made in a contract play an important role. It is wise to hire an adviser to help you in this phase.
Do you want to know which Venture Capital funds are active in your sector or industry? Check the list on the website of the Netherlands Venture Capital Association (Nederlandse Vereniging van Participatiemaatschappijen, NVP) for an overview of all their members.
Increase your chances of success
When you go looking for finance, make sure to look closely at the required criteria. Use the financing flowchart to select a form of financing that fits your situation.
Help with financing
Getting help increases your chances of financing. The right adviser and a good financial basis are important for a successful financing application.