Netherlands to invest €200m in second round of European start-up fund

The Dutch government will invest €200 million in a new round of the European Tech Champions Initiative (ETCI), a fund designed to channel more capital into large private investment funds and help European technology start-ups grow into scale-ups. The second round was announced in Luxembourg on 9 November.

Member states and the European Investment Bank plan to contribute about €1.8 billion to ETCI 2.0. The fund will invest in private funds with a minimum size of €600 million, preferably more than €1 billion, according to the Dutch government.

The Netherlands contributed €100 million to the initiative’s first round, which ran from 2023 to 2026. The government says seven Dutch start-ups have so far received €338 million in financing through it. The first phase has made about 10 per cent of a targeted €17 billion in leverage; the government says the full effect will take years to emerge because venture-capital investments have long cycles.

Germany, Spain and the EIB are returning investors. Bulgaria, Greece and Luxembourg are joining the initiative for the first time.

Economic Affairs and Climate Minister Heleen Herbert said the new round was intended to support the growth of Dutch companies, as well as innovation and competitiveness. She also said it could help prevent unwanted technological dependencies.

One Dutch company financed in the first round is Leiden-based biotech start-up Azafaros, which is developing treatments for rare neurological disorders. The government says the funding will help it continue development and work towards bringing treatments to market.