On this page
A venture capital fund is a fund for high-risk investment in innovative and/or fast-growing businesses, generally within a certain sector or industry. You can apply for funding from a venture capital fund directly. Investments in the Netherlands usually start at €200,000 in exchange for ownership equity and average between €1 million and €3 million.
How venture capital works
Venture capital funds receive hundreds of applications every year. They only select the most promising proposals. The fund's main aim is to generate a return on investment (ROI) for its participants. To achieve this, they're looking for your company's shares to increase in value over time. They'll aim to resell their shares to you or other financiers in three to seven years' time. This is their 'exit' strategy.
Applying to a venture capital fund
If you're planning to approach a Dutch venture capital fund, it's worthwhile learning 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 contractual agreements play an important role. It's wise to hire a professional to help you with these aspects.
For additional information about venture capital funds in your sector or industry, visit the Netherlands Venture Capital Association (Nederlandse Vereniging van Participatiemaatschappijen, NVP).