The Netherlands: The new El Dorado for venture capital funds?

Blossoming market in the Netherlands

According to the Dutch Private Equity and Venture Capital Association (NVP), €1.3 billion of new funds were raised by Dutch venture capitalists in 2018, which is believed to be the highest amount ever. The same research noted that €387 million worth of venture capital was extended to 298 young and fast-growing companies, setting a new record and showing an increase of 11% by value and 22% by volume. On sectoral distribution, the most popular categories were tech and life science funds, together comprising two-thirds of the total sectoral VC investment into young and fast-growing Dutch firms.

All of this points towards an undeniable upswing in the Dutch private equity and VC market. This can be largely explained by the fact that the Netherlands offers a 'light' regime for smaller funds, which is encouraging a lot of start-ups and tech firms to set up in the country, with the NVP report affirming the jurisdiction’s broad-based appeal to investors across different geographies.

In my latest Real Deals article, I discuss this exciting upswing in more depth and shine a spotlight on the light regime that typically applies to VC fund managers domiciled in the Netherlands:

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