By Jasper Koch, Business Development Director, The Netherlands
The Netherlands is thriving as a European venture capital powerhouse, with €3.1 billion invested in 2025 – a remarkable 47% increase from 2023, even as other European markets saw declines. This surge is driven by a booming deep tech sector, which now accounts for 35% of the Dutch tech ecosystem, and is supported by a strong legal framework, global investor interest, and alignment with European Venture Capital Fund (EuVECA) priorities in sustainability and digital innovation. Dutch venture capital (VC) funds benefit from flexible fund structures and tax-neutral vehicles, attracting international managers seeking efficient, scalable platforms.
The EuVECA regime is a key enabler of this growth, allowing fund managers to market their funds across the European Economic Area (EEA) using a simplified passporting mechanism.
The Dutch government support further amplifies this momentum through initiatives like its Seed Capital scheme, which co-finances VC funds with interest-free loans covering up to 50% of capital commitments. Together, these elements position the Netherlands not just as a participant, but as a leader in shaping Europe’s next wave of venture capital innovation.
Netherlands deep tech and EuVECA
EuVECA is playing a transformative role in the Dutch tech industry by fostering cross-border capital flows, regulatory alignment and deeper engagement from private equity.
This is particularly vital for deep-tech startups, which require long-term capital and strategic support beyond seed funding. As highlighted in IQ-EQ’s analysis, the Netherlands faces a critical growth-stage funding gap, with many promising ventures acquired by foreign entities before reaching scale.
EuVECA’s efforts to mobilise institutional investors (including Dutch pension funds) and encourage private equity participation are essential to anchoring innovation within the country.
By bridging the divide between venture capital and private equity, EuVECA helps ensure that Dutch breakthroughs evolve into globally competitive companies.
How to qualify for EuVECA
To qualify as a EuVECA fund:
- EU establishment – The fund must be legally set up within the European Union to qualify for the EuVECA label
- Investment focus – At least 70% of capital must be allocated to qualifying investments, typically unlisted SMEs in early growth stages
- Registered fund manager – The fund must be managed by an alternative investment fund manager (AIFM) registered under the EuVECA regime, whether sub-threshold or full-scope.
- Investor eligibility – EuVECA funds can only be marketed to professional investors or high-net-worth individuals, each committing a minimum of €100,000.
Key features of the EuVECA regime
Major benefits of qualifying as an EuVECA fund include:
- Pan-European passporting – Once registered, managers gain a single EU-wide marketing passport, eliminating the need to navigate fragmented national private placement regimes
- Light compliance burden – EuVECA offers simplified regulatory requirements, making it ideal for smaller or emerging fund managers focused on early-stage ventures.
Who benefits from EuVECA?
- Fund managers benefit from the EuVECA regime’s streamlined regulatory framework, which allows them to market their funds across the EEA without the full compliance burden of the Alternative Investment Fund Managers Directive (AIFMD). This is especially advantageous for emerging managers and those with assets under €500 million, enabling faster fundraising and broader investor reach
- Investors have access to a wider pool of high-growth opportunities across Europe, backed by enhanced transparency and governance standards. EuVECA ensures investor protection while opening doors to innovative ventures in sectors like deep tech, fintech, and sustainability – areas where Dutch startups are increasingly leading
- SMEs and startups receive critical early-stage capital and strategic guidance, helping them scale during their formative years. This support drives innovation, competitiveness and job creation, particularly in ecosystems like the Netherlands, where over €48 billion is managed by private equity and venture capital firms.
Why is EuVECA important for Dutch fund managers?
The Netherlands has one of Europe’s most sophisticated financial ecosystems, characterised by a strong appetite for innovation, a globally connected investor base, and a strategic orientation toward cross-border capital flows. The 2024 Global Innovation Index ranked it the 8th most innovative country in the world. In this environment, the EuVECA regime offers Dutch fund managers a powerful tool to scale their impact across the continent:
- Reducing regulatory friction for smaller managers
- Supporting the growth of Dutch startups and scale-ups
- Enhancing the Netherlands’ position as a gateway for European capital.
Moreover, EuVECA complements the Dutch legal and tax infrastructure, which is already conducive to fund formation and structuring.
Are there alternatives?
- AIFMD: Offers a marketing passport but imposes heavier compliance obligations; suitable for larger managers
- National private placement regimes (NPPR): Allow marketing in specific jurisdictions but lack harmonisation and scalability
- European long-term investment funds (ELTIF): Target long-term investments but are more restrictive in terms of eligible assets and investor types
- European social entrepreneurship funds (EuSEF): Focus on social enterprises, not general venture capital
EuVECA strikes a balance between regulatory efficiency and investor reach, making it ideal for Dutch VC managers aiming to expand across Europe.
How we can help
As a trusted partner to fund managers globally, IQ-EQ Netherlands offers a comprehensive suite of services tailored to EuVECA funds:
- Fund set-up and structuring: Guidance on choosing the right vehicle and jurisdiction
- Regulatory compliance: Support with EuVECA registration, reporting and ongoing obligations
- Depositary services: Full-scope and depositary-lite options for Dutch and cross-border funds
- Investor onboarding and AML/KYC: Efficient onboarding and compliance checks for LPs
- ESG reporting solutions: Integration of ESG policies and investor reporting aligned with EU standards
With deep expertise in Dutch and EU fund regulation, we empower managers to focus on value creation while we handle the operational and regulatory complexities.
EuVECA is more than a regulatory label – it’s a strategic enabler for Dutch venture capital managers seeking to scale across Europe. As the VC landscape evolves, embracing EuVECA can unlock new capital, partnerships and growth opportunities. And we stand ready to support fund managers every step of the way.
To learn more about how we can support you in setting up your EUVECA fund, please reach out to our team. We also provide investor administration, transfer agency and fund accounting.
