The new organisation will focus on the energy transition, digitalisation, improving access to funding for entrepreneurs and boosting innovation and international impact, the Invest-NL CEO tells Impact Investor.
State-owned investment fund Invest-NL will merge with its international counterpart, Invest International, to create the first national promotional institution (NPI) in the Netherlands.
The move, which was announced by the caretaker Dutch cabinet on Friday, comes after long-time calls from politicians and business leaders to create one powerful public investor that can match European frontrunners in Germany, France and Denmark.
Recent geopolitical and economic developments underline the need for a more robust NPI, Rinke Zonneveld, CEO of Invest-NL, told Impact Investor.
“The new organisation will focus on accelerating major societal transitions such as energy and digitalisation, and improving access to finance for entrepreneurs with increased capital. It aims to boost innovation, strategic autonomy, and international impact,” Zonneveld said.
The new organisation will be able to raise funds independently on the capital market thanks to a state-backed guarantee, according to Zonneveld. “In short, a hugely important step for the Netherlands’ earning capacity and transition tasks,” he said.
Challenges
Founded in 2020, Invest-NL supports innovative companies in the Netherlands. Invest International, which was established a year later, is targeting export financing and development impact in developing countries.
The Netherlands is facing a number of “major challenges” in its business climate, innovation, transitions and strategic autonomy, Dutch finance minister Eelco Heinen wrote in a letter to parliament on Friday.
“There is a need for sufficient funding for these challenges, with innovative companies with a high risk profile in capital-intensive sectors and companies in a later funding phase , such as scale-ups in particular, having insufficient access to risk-bearing funding. Companies are moving abroad as a result,” Heinen said.
He went on to say these challenges are calling for the foundation of “a larger, integrated and more decisive financing institution”.
Merger completion
Invest-NL and Invest International will start working together from next year, and complete their merger in 2028, subject to parliamentary approval and European regulations.
Until the merger is completed, the Dutch cabinet will allocate €250m to Invest International from future Invest-NL budgets, starting with €150m next year, followed by €100m in 2027, Heinen said in his parliamentary letter.
In addition, the cabinet plans to announce how much future financing the new organisation will need in the autumn. Both organisations currently have access to around €4bn in total funding. Zonneveld declined to comment on the future budget for the new entity.
The new institution will combine public capital, expertise, networks and finances in areas where the market is still insufficiently involved. “This is crucial in a world of economic and geopolitical uncertainty,” both organisations said.
In practice, this means Dutch entrepreneurs will have access to a wider range of financing options, ranging from venture capital to long-term financing, across all stages of growth, both at home and abroad.
Global development
The merger will help Dutch businesses scale internationally and contribute to sustainable global development, according to Melanie Maas Geesteranus, CEO of Invest International.
“This integration increases our impact and global relevance and gives entrepreneurs even more room to grow,” said Maas Geesteranus, who was appointed CEO of Invest International last month.
