In 20 years, more than 800 start-ups have benefited from the Seed Capital Scheme. These companies received a total of € 729 million, enabling them to grow faster. This amount came partly from private investors and partly from the government. The scheme is a collaboration between private investors and the Netherlands Enterprise Agency (RVO).
How successful is the approach?
The results are impressive. Start-ups that received an investment from a Seed Fund grow on average from 12 to 26 employees and see their revenue increase more than fivefold in 5 years. So far, Seed Funds have completed sales on 42% of their investments; the total proceeds from this is € 551 million. The Seed Funds received € 398 million from this. The expectation is that the State will ultimately recoup all its investments and may even make a profit.
Regional successes and future opportunities
Companies in the Randstad and North Brabant received the most support. In Oss, the success was remarkably large: an investment of € 11 million yielded no less than € 108 million. However, fund managers see room for improvement. Since the requested investment budget is usually larger than the available budget, not all applications can be approved. If additional budget is provided, it could lead to larger and more Seed Funds. This would enable even more start-ups to be supported and grow into larger companies (scale-ups).
Want to know more?
Would you like to read more about the results and possibilities of the Seed Capital Scheme? Then check out the report 20 years of SEED Capital.
