Effective stimulus can save entrepreneurs up to €600 million in additional early start-up financing each year. This is the opinion of Techleap.nl, based on research by PwC.
An effective scheme aimed at stimulating investment from business sponsors is essential for the growth of companies in the Netherlands and for solving societal challenges. The Entrepreneurs for Entrepreneurs Program must combat the lack of early stage startup funding and ensure that entrepreneurs reinvest their own capital and knowledge in new businesses so that they can grow more successfully.
According to Techleap.nl, an effective reinvestment scheme can provide additional financing of at least 150 million, rising to 600 million annually.
Very few Dutch startups are growing, in part due to a lack of investment in the early and more risky stage. The total amount is stagnant and the share of deals in the first stage, below 1 million, has been on a downward trend for years. This is a problem, not only because successful startups provide employment growth, but also because these companies are finding solutions to major social transformations in climate, care and the circular economy and it is important that we continue here in our country to orient yourself.
The knowledge and capital of business sponsors, often (former) entrepreneurs, is essential for early stage startups. However, due to the lack of a suitable incentive, the share of angel investment in the Netherlands is much lower than in competing startup ecosystems, the research shows. Due to the regulations in place in the UK and Germany, among other things, the investment climate for business angels is much more developed there than it is here in the Netherlands. Moreover, Dutch business angels point out that there is still a lot of untapped potential, in which taxes play an important role.
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