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Venture capital companies manage investment funds and institutional investors' assets in a fund often totalling several tens or even hundreds of millions of euros for periods of around ten years. From this fund, they invest amounts of several million euros in promising companies. The capital they invest is also referred to as private equity.Venture capital companies are also interested in start-ups or fast-growing companies, in which case their capital is referred to as venture capital. Some Dutch provinces even have their own venture capital companies for local businesses called regional development corporations (RDCs), in Dutch: regionale ontwikkelingsmaatschappij (ROM).
Level of investment
RDCs and venture capital funds generally invest 'smaller' amounts. Venture capital funds invest amounts of €250,000 or more, and RDCs €1 or 2 million or more.
Larger capital investments of several tens of millions of euros regularly receive a lot of attention in the media, but in practice 80% of investments are less than €5 million. This makes them particularly suitable for larger SMEs.
Influence & control
A venture capital company usually takes a share in your business in the expectation that this will increase in value over time. Participation of this type can contribute greatly to your business, providing more than just funding. They can provide expertise, experience and access to their extensive network of contacts in order to help your company grow to the next level.
Venture capital companies often specialise in a certain sector or industry.
The Netherlands Venture Capital Association (Nederlandse Vereniging van Participatiemaatschappijen, NVP) represents the private equity and venture capital funds that manage 90% of such investments in the Netherlands.
Around seventy venture capital companies are members of the NVP, as well as several large affiliates. The NVP has a listing of all these funds.