De Breed & Partners, a company which delivers advise on, and helps companies apply for, subsidies in the area of innovation, rolled out the TechFundOne last week in partnership with Investormatch. The fund provides growth capital to tech companies with promising innovations.
TechFund One gives companies, which can be software and/or hardware companies with revenues of at least EUR 250,000, between EUR 100,000 and EUR 250,000 in funding. Companies receive funding via the Investormatch financing platform.
Selection criteria include, amongst other points, scalability and how IP-driven an entity is, with only companies registered in the Netherlands who have launched the first version of their product to the market being able to apply.
The lifecycle of the fund is eight years, with participating companies expected to exit between the five-to-seven year mark. Besides funding, the fund also lends its considerable expertise in entrepreneurship, finance, and technology to its clients, providing coaching so businesses can sufficiently scale.
The fund seeks to have between 10 and 12 companies in its portfolio over the next four years.
In a post on its website, De Breed states that its more than 35 years of experience helping SMEs find growth financing has given them an excellent overview of not only what SMEs need in terms of financing, but the shortcomings of the funding landscape.
Peter van Meersbergen, managing partner at De Breed, states that, “We see a gap in the current funding market. There is a large group of entrepreneurs in innovation who are too small for existing investment funds but at the same time have outgrown the so-called ‘family, friends, and fools’ phase of funding—we set up TechFund One for these companies.”