The regional funds FOM and MKB Fonds Drenthe were established in 2014. They are now ten years old: what development have the funds gone through and what is their added value for Friesland and Drenthe? The NOMMER spoke with both team leader Rob Drees and the five investment managers. Drees sums up: 'We are close to the entrepreneurs and the relevant network, so signals from the market reach us quickly. We support innovation in companies, but are also innovative ourselves with our products. Moreover, we can switch quickly.
Around 2012, the northern provinces doubted whether NOM could fully serve SMEs: was it perhaps possible to create a complement? Drees explains: "At that time, the provinces were still shareholders in NOM for a minimal percentage of 0.01%. The agenda was mainly set by the largest shareholder: the Ministry of Economic Affairs.' Consultations between NOM and the provinces resulted in the establishment of Doefonds Fryslân and MKB Fonds Drenthe in 2014, and Investeringsfonds Groningen in 2015.
'The provinces are shareholders of their own fund and NOM is manager. All three are independent funds,' the team leader emphasizes. He is modest about his own role: 'I am just the helmsman of the regional funds. I make sure there is a clear playing field for the investment managers and that everything is well organized on the back end, so that they can get to work with entrepreneurs. The investment managers are the ones who do the work, just read how they do it.'
Sybo Zijlstra, investment manager at FOM since 2017
The objective of Doefonds Fryslân was to finance innovations in Frisian SMEs. At the end of 2017, Province of Fryslân decided that we were going to broaden the target group to the broader Frisian SMEs. The name was changed to Frisian Development Company (FOM) and there was an increased budget. In recent years there has been another shift, but from the market: practically all funding has something to do with circularity or sustainability. For this we also sometimes work together with Fûns Skjinne Fryske Enerzjy (FSFE), also a fund of the Province of Fryslân.
The province wants to strengthen broad prosperity in Friesland with the Economic Cooperation Agenda Blue Delta. This consists of six spearheads: AgroFood, Water Technology, High Tech Systems & Materials, Circular Materials, Maritime Technology and Tourism & Hospitality. We organize our portfolio according to these spearheads and have divided the sectors (except tourism) within our team. I focus on Water Technology, Klaas on AgroFood and Circular Materials and Reno takes on High Tech Systems & Materials and Maritime Technology.
Of course, companies that do not fall within these sectors are also still very welcome. I therefore expect us to remain very busy for the time being. Our portfolio continues to grow and management tasks also play an increasing role. FOM is a very nice addition to the funding landscape in Friesland. We help companies get off to a flying start or take follow-up steps that they would not otherwise be able to manage. We don't sit in the entrepreneur's chair, but neither are we just a financier. We offer support through our network, ourselves and the NOM. The fact that we not only have a financial objective, but also a social objective, is appreciated by many entrepreneurs.
Klaas Kooistra, investment manager at FOM since 2022
I have been working at NOM for about ten years and also have experience in other provinces. In Friesland, there is a strong collective will to achieve something together. There is an urge to cooperate that ensures that there are fewer hurdles to overcome than elsewhere. I also notice this in the Kanselarij, where we have been located since January. The whole cluster of sectors Sybo mentioned is represented here.
Moreover, we are close to the student population. I really like that: these are the entrepreneurs of the future. We get leads on an ongoing basis, largely from our own network. I like having coffee with entrepreneurs. Even if ideas do not immediately lead to concrete funding plans, I go into them with an open mind and am also happy to refer them to other parties. Who knows what will come of it later. Moreover, such an entrepreneur is bound to share his positive experience with FOM with his own network.
The biggest change in recent years has been the funding landscape. Ten years ago, an entrepreneur didn't have much to choose from. Now there is much more capital in the market and many more parties are active. As a result, entrepreneurs who get it right can choose from several horses to bet on. You have to be able to collaborate with other parties, network and share knowledge.
My wish for the future is that we get the space to convert the enormous deal-flow and will to cooperate more often into successful financings. That way we can be of even greater value to Friesland socially with FOM.
Reno Minnema
'I was hired last year because Sybo and Klaas were pretty busy. It certainly hasn't gotten any quieter since then! The fact that we are now going to focus on the provincial spearheads does provide more structure.
We also intend to cooperate with key partners, such as NHL Stenden and FB Oranjewoud. NHL Stenden has a Center for Entrepreneurship: college students follow a program in which they work on their entrepreneurial ambitions. We are in talks with the college to explore how together we can help guide budding entrepreneurs in setting up and running their businesses.
FOM can support this with start-up capital, among other things. Province of Fryslân, municipality of Leeuwarden, NHL Stenden and us may be able to join forces in this way, because we look at young entrepreneurship with the same view: we want innovation and knowledge to stay in the region and talented students not to leave. If they have a potentially successful plan, we are happy to help them along.
We are also looking at other opportunities with other parties such as Oranjewoud Export Academy to provide support on key business issues. For example, finding the right product-market combination and taking the first international steps.
For me, a project is successful when an entrepreneur no longer needs us. We drag such an entrepreneur through a difficult period: a start-up phase, or a phase in which a product still needs to be developed. We really support entrepreneurs: we ourselves have relevant knowledge of business, but also a broad network that we can deploy. When everything finally falls into place, our mission is successful.'
Emmy Saimi-Roozeboom, investment manager at MKB Fonds Drenthe since 2017
When the Fund started in 2014, after the credit crisis, SMEs were finding it difficult to get funding. We provide funding to SMEs that want to grow and/or innovate and cannot get funding from a bank. If we invest in something, it must be of social importance to the province. The investment must lead to a positive contribution to themes such as quality of life, health and sustainability. We live here in a beautiful area, but that area must also remain livable in the long term. This requires employment, among other things, for all forms of training.
So that you have the choice to stay here and don't automatically have to go west. I also think it's important for my children's future that Drenthe continues to be a good place to live, work and play. The fund has been quite successful over the past ten years. We have financed about 65 companies, totaling over 18 million euros. In the process, we have created almost 600 jobs. We also include other parties in funding; for example, we work a lot with banks. Together we make funding possible that was not possible on its own. So we also 'pull money out of the market', which over the past ten years has been around 40 million euros.
By offering more products, we have broadened the options for funding. Ideally, we would like to add more. In addition to offering financial solutions, we really bond with business owners. We visit regularly, we act as advisors and sparring partners, and we give entrepreneurs access to our ever-growing network. We have incredibly nice companies in our portfolio, I'm proud of that. In addition, I am always looking for companies with good ideas and great ambitions. I'm very happy to engage with those.'
Tim Vonk, investment manager at MKB Fonds Drenthe since 2024
'I am from Groningen and have been working at MKB Fonds Drenthe since March 1. It appeals to me that the SMEs here in Drenthe are driven entrepreneurs: they have passion and are intrinsically motivated to make a success of their business. The northern sobriety and modesty adorns entrepreneurs, but the fantastic things they do could be more visible.
I think we are moving toward a future in which the importance of making quick money fades into the background and being able to do something good becomes increasingly important. MKB Fonds Drenthe fits in perfectly with that. Of course there has to be a financially viable plan before we start funding, but when we step in we help a company and the province move forward. Moreover, we are not there to take the market away from the bank. I have already sat around the table several times with former colleagues from Rabobank. We are not competitors, we can complement each other to complete the funding.
The market is developing rapidly, as are technologies such as AI. It is important to be aware of them. Standing still is really going backwards: you have to move with the times through innovation. Here too I hope to play my role within the MKB Fonds Drenthe.
After all, we are not just lenders, we also spar with entrepreneurs and advise them. I like to really look entrepreneurs in the eye. That way you build a bond with each other and know what you can gain from each other. Ultimately, you are still funding the people behind the organization.
Rob Drees, regional funds team leader
Rob Drees is enthusiastic about the drive of 'his' investment managers. 'I am extremely happy with our regional funds: they are genuinely beautiful organizations that have been adding great value to SMEs for ten years. We are able to respond quickly to a market need: those who want to stimulate innovation must themselves have that in their DNA. The (export) guarantee product we have developed in cooperation with Liberty Mutual is not only a fine example of this, it is also nicely rebellious.'
Drees also wants to give SMEs an important message: invest! 'Entrepreneurs must invest in innovation and digitalization in the short term, otherwise they will miss the boat. And that can be very damaging for everyone in the provinces.' The team leader emphasizes that the next three to five years really need to take a hit.
The frontrunners will win this battle and a number of companies are not going to make it, if they don't act in time. Come up with investment plans and knock on the door of our investment managers. As you can read, everyone is incredibly motivated to help.'