Dutch entities Invest-NL and Invest International to collaborate and establish the nation's inaugural national promotional institution
The Dutch government has announced a significant move in the country's business landscape. The state-owned investment funds, Invest-NL and Invest International, are set to merge, creating the first National Promotional Institution (NPI) in the Netherlands. This merger aims to address challenges in the Dutch business climate and strengthen the country's strategic and economic autonomy.
The new NPI will have access to approximately €4 billion in total funding, with the Dutch cabinet allocating €250 million from future Invest-NL budgets, starting with €150 million next year, followed by €100 million in 2027. This combined institution is expected to begin cooperation by 2026 and complete the merger by 2028, subject to parliamentary approval and compliance with European regulations.
The merger will provide Dutch entrepreneurs with a broader range of financing options, including venture capital and long-term financing, across all stages of growth, both domestically and internationally. This move is particularly beneficial for innovative companies with a high risk profile in capital-intensive sectors and scale-ups, which have insufficient access to risk-bearing funding, leading some to move abroad.
Melanie Maas Geesteranus, CEO of Invest International, stated that the integration increases the institution's impact and global relevance, giving entrepreneurs more room to grow. The merger will also foster a stronger innovation ecosystem by leveraging the combined expertise and networks to support entrepreneurs through financing and strategic growth opportunities.
In addition to the merger, other significant developments are taking place in the Dutch financial sector. The European Investment Bank (EIB) has partnered with Rabobank in a €1 billion SME financing deal. Swedfund, a state-owned Swedish development finance institution, has reaffirmed its commitment to an African microfinance specialist with a consecutive loan.
The new NPI will focus on contributing to sustainable global development, accelerating major societal transitions such as energy and digitalisation, and improving access to finance for entrepreneurs with increased capital. The integration directly tackles issues related to innovation, transitions (such as economic and geopolitical uncertainty), and strategic autonomy by filling gaps where private markets are insufficiently involved.
The launch of IIX's Women's Livelihood Bond is another example of this approach, categorized under Blended finance, Bonds, Development finance, and Financial inclusion. This bond aims to provide funding for women-owned businesses in Southeast Asia, addressing a gap in the market where women often have limited access to capital.
In conclusion, the merger between Invest-NL and Invest International marks a significant step forward for the Dutch business landscape. The new NPI will be a unified, stronger financial and advisory body that will better support Dutch entrepreneurs in innovation, international scaling, and sustainability transitions, thereby addressing challenges in the business climate and reinforcing the Netherlands' strategic and economic autonomy.
[1] Source: Dutch Ministry of Economic Affairs and Climate Policy
- The new National Promotional Institution (NPI) in the Netherlands, resulting from the merger of Invest-NL and Invest International, will have access to approximately €4 billion in total funding.
- This merged institution will offer Dutch entrepreneurs a broader range of financing options, including venture capital and long-term financing, across all stages of growth, both domestically and internationally.
- The new NPI is expected to focus on contributing to sustainable global development, accelerating major transitions such as energy and digitalization, and improving access to finance for entrepreneurs with increased capital.
- The launch of IIX's Women's Livelihood Bond, a blend of Bonds, Development finance, Financial inclusion, and Blended finance, aims to provide funding for women-owned businesses in Southeast Asia, addressing a gap in the market where women often have limited access to capital.
