Ministry of Defense invests 100 million euros in fund to increase innovation power of Dutch startups.
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COMMUNITY - Defense, the provinces, Economic Affairs, regional development corporations and industry are joining forces for national security, innovation power and economic growth.
The Ministry of Defense is creating a 100 million euro investment fund, the SecFund, to provide financing to Dutch startups, scale-ups, and innovative SMEs that meet Defense’s innovation needs. The fund will invest up to a maximum of 5 million euros per company.
Thus, the Ministry of Defense, the provinces, the Ministry of Economic Affairs, regional development companies, and industry are joining forces to promote national security, innovative strength, and economic growth.
According to research by the European Union, innovative companies in the defense sector more often experience a barrier in obtaining financing. Raising venture capital poses a major challenge not only because these companies’ capital needs are very high but also because financiers are reluctant to invest in the defense industry. The SecFund should bridge this gap.
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Dual-use
The SecFund will focus on dual-use products. These products can be used in civilian and security sectors, such as technology that can make installations silent. 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 the SecFund, we support start-ups and scale-ups in a crucial phase to come up with innovations together for a safer Netherlands,” said Gijs Tuinman, State Secretary of Defense.
The SecFund is a collaboration of the Ministries of Defense and Economic Affairs and the nine regional development companies (ROMs). It is a fund with national coverage. Implementation is invested in the Brabant Development Company (BOM) in cooperation with the other ROMs. The fund is expected to open in January 2025. From then on, interested companies can apply.
“Business can make an unprecedented contribution to the innovation power of defense and vice versa,” said Brigit van Dijk-Van de Reijt, general director of the Brabant Development Corporation (BOM) on behalf of the nine regional development companies. “The SecFund thus strengthens strategic autonomy and economic security in the Netherlands and contributes to long-term earning power.”