The Ministry of Defense is creating a €100 million investment fund, SecFund, to finance Dutch start-ups, scale-ups and innovative SMEs that meet the Ministry’s innovation needs. The fund will invest up to 5 million euros per company.
In this way, the Ministry of Defence, local and economic ministries, regional development enterprises and industry are working together to promote national security, innovation and economic growth.
Innovative companies in the defense sector often face barriers to financing, according to a European Union study. Raising venture capital has become a major challenge, not only because these companies have very high funding needs, but also because financiers are reluctant to invest in the defense industry. SecFund should fill this gap.
dual use
SecFund will focus on dual-use products. These products can be used in the civilian and security sectors, including technology to quieten facilities. Another example is LiFi, a new generation of data transmission that can transfer more data per second at higher speeds than WiFi. Or consider advanced wireless technology. “With SecFund, we will support start-ups and scale-ups that are at a critical stage in coming up with innovations for a safer Netherlands,” said Defense Secretary Guis Tuynman.
SecFund is being established in collaboration with the Ministry of Defence, the Ministry of Economy and nine Regional Development Companies (ROMs). It is a nationwide fund. The implementation will be invested in Brabant Development Company (BOM) in collaboration with other ROMs. The fund is scheduled to open in January 2025, after which interested companies will be able to apply.
Brigitte van Dijk van de Reit, general director of the Brabant Development Corporation (BOM) representing nine regional development companies, said: “Companies have the opportunity to make an unprecedented contribution to the innovation power of defense. Yes, and vice versa.” “SecFund will therefore strengthen the Netherlands’ strategic autonomy and economic security and contribute to its long-term profitability.”
