Defense invests €100 million in fund to boost innovative capacity of Dutch startups
The Ministry of Defence today announced the establishment of a new investment fund, the SecFund (‘Security Fund’). This fund, with assets of 100 million euros, will provide early-stage financing to Dutch start-ups, scale-ups and innovative SMEs that meet the innovation needs of the Ministry of Defence. The fund will invest up to a maximum of 5 million euros per company.
The Ministry of Defence, the provinces, the Ministry of Economic Affairs, regional development agencies and industry are joining forces to promote national security, innovation and economic growth.
Research by the European Union shows that innovative companies in the defence sector experience more barriers to obtaining financing than companies in other sectors. Raising venture capital is a major challenge, not only because these companies have very high capital requirements, but also because financiers are reluctant to invest in the defence industry. The SecFund aims to bridge this gap.
Dual-use in security and civil applications
SecFund will focus on dual-use products. These are products that can be used in both the civil and security sectors. Examples include technology that can make installations low-noise. These applications result in quiet factories on the one hand and quieter drones on the other. Another example is LiFi: a new generation of data transmission that is faster than WiFi and can transfer more data per second. Or consider advanced radio technology.
“With SecFund, we support start-ups and scale-ups in a crucial phase to jointly develop innovations for a safer Netherlands,” says Gijs Tuinman, State Secretary for Defence.
SecFund is a collaboration between the Ministries of Defence and Economic Affairs and the regional development agencies (ROMs). It is a fund with national coverage. Implementation is entrusted to the Brabant Development Agency (BOM) in collaboration with the other ROMs. This ensures optimal use of the knowledge and experience available there in the areas of investment and venture development. The supra-regional fund manager is BOM.
The fund is expected to open in January 2025. From that moment on, interested companies will be able to register.
“The business community can make an unprecedented contribution to the innovative strength of defence and vice versa. SecFund thereby strengthens strategic autonomy and economic security in the Netherlands and contributes to long-term earning capacity,” says Brigit van Dijk – Van de Reijt, managing director of the Brabant Development Agency (BOM) on behalf of the nine regional development agencies.
Want to know more?
Want more information or to know how LIOF can help your company move forward? Feel free to contact us!
Opslaan op je telefoon?
Scan de QR code.
