As we have come to know, for a healthy entrepreneurial ecosystem, sufficient capital needs to flow towards high-risk entrepreneurial activities. But in the Global Entrepreneurship monitor (GEM, 2013), access to entrepreneurial finance was rated as the poorest condition for the Dutch entrepreneurial ecosystem. Especially high tech start-ups often lament the lack of capital available to them. Financiers on the other hand want to invest their money in the most profitable way within a range of investment opportunities. They often criticize the availability of good investment options in the world of start-ups.
This new Climate-KIC report on start-up funding sets out to identify barriers to the alignment of supply and demand of capital for high technology start-ups. Hereby, the study addresses two introductory questions:
1. How do financiers evaluate the different high tech start-ups in the market?
2. How do entrepreneurs evaluate the different funding sources in the market?
These two questions guide us to the main research question:
3. What are the barriers in start-up financing in the Netherlands?
Based on interviews with 22 financiers (including large VC funds, public VCs, angel investors, family offices and banks) and 23 entrepreneurs (across 4 industries; high tech systems, ICT, LS and clean tech), this report elaborates upon the financing landscape and the preferences of financiers within the Netherlands. Moreover, it introduces a typology of entrepreneurs and their preferences in relation to funding, showing a positive attitude towards informal investors, Supply Chain Finance, subsidies and Flexible Finance Facilities.Last, but not least, the report discusses the barriers for financing of start-ups within the Netherlands and reflects on the three most apparent issues and discusses their implications.
Read the report by clicking the link below:
Start-up funding: The (mis)alignment of financiers and start-ups in The Netherlands