A lot is happening in the Northern Netherlands in terms of entrepreneurship, but there is room for further growth. Startups in the tech scene are there, but it's a bit thin. Still, or perhaps for this very reason, the international investment funds Curiosity and Lumo Labs see bread in the North. Why? Because the preconditions are right.
'With the university, the Zernike Campus, the UMCG, the Bernoulli Institute, incubators, local investors and a network of growth funds, the region around Groningen in particular has a lot to offer,' says Herman Kienhuis. He is founder of Curiosity Venture Capital, an investment fund that focuses mainly on startups working on software in the field of AI and Machine Learning. "I am convinced there is a lot more to come out of it. The widespread availability of GenAI models such as ChatGPT, Gemini and Mistral is a unique opportunity for entrepreneurs to develop disruptive applications with. This is as revolutionary as the Internet.
Curiosity
Based in Amsterdam and operating throughout northern Europe, Curiosity is committed to the North thanks to a stake from the Investment Fund Groningen(IFG). This collaboration is more logical than it may initially sound. Kienhuis: "We are always looking for great startups that we can help further, especially in the North. Thanks to IFG's knowledge and network, we see and hear more. On the other hand, we try to advance the ecosystem through networking events and education, among other things.'
Lumo Labs
Even further away based, but already better known in the Northern Netherlands, is Lumo Labs from Eindhoven. In recent years, that investment fund has already put money into Enatom, AirHub and Protyon, all startups from Groningen. Andy Lürling is the founder. 'We are looking for startups that are disruptive and out for system change. Overall, you can say that they all need to improve the quality of life. And yes, there are certainly those in the Northern Netherlands. We have just launched our second fund and are pleased that the IFG is participating again. Together we are looking for the best early-stage startups.'
On to the next unicorn, so to speak. Although, that may not be the best way to approach the ecosystem. Lürling: "I think we in Europe should develop more our own way. In the U.S., it's all about the very biggest, about a mentality of 'the winner takes it all.' That has long been our example, but we need to do things differently, I think. More collaboration, more open source, more impact. Rather twenty beautiful companies that together have the value of a unicorn, than one winner.'
Andy Lürling, Lumo LabsWe are looking for startups that are disruptive and out for system change.
Fiery ambition
That means collaboration and developing a strong ecosystem. Curiosity and Lumo Labs are happy to help with that. In the North, in the Netherlands, in Europe. There is still quite a bit of work to be done in that regard, Kienhuis sees. 'Entrepreneurship has far too little attention in the Netherlands. At colleges, at universities, it needs to be much more interwoven into education. And besides: where is the fervent ambition to conquer the world? I miss that in many places. Perhaps even more so in the down-to-earth North. You should not be satisfied too quickly.'
Andy Lürling is of the same opinion. 'The bar may be higher. Don't aim for the moon, aim for the stars, then be happy with the moon. In other countries I see this ambition much more. Certainly in the Baltic countries, where we are also active. If you undertake, go all the way.'
Question is: how do you change that mindset, how do you get startups to fly, to create more entrepreneurship with holy fire? The two investment funds are doing their best. Lürling likes to draw a comparison with a soccer club. "People come to the stadium for the soccer players. Not for the sponsors, not for the board, nor for the coach. This is also how it works in the ecosystems around startups and entrepreneurship. The entrepreneurs are the soccer players. They are the most important. But far too often I see administrators and sponsors taking the spotlight. That has to change.
Inspire and drive
Successful entrepreneurs are the most important factor in stimulating new entrepreneurship, Herman Kienhuis agrees. 'You need them in education, at events, in knowledge sessions, in accelerator programs, and as investors. They know how it works and can inspire and encourage. We can learn from successful Groningen scale-ups such as Belsimpel, Paylogic, Soly, Voys and Klippa.'
This is necessary to get the flywheel moving. 'To build good entrepreneurship and a successful ecosystem, you need several ingredients. Talent is one, but also education, investment money, good infrastructure, good examples and more. Once there are some success examples, the flywheel starts turning. After an exit, more money enters the ecosystem and you get more and more movement. Successful founders start investing in new startups or funds, giving advice, networking, and so on. So there is growth and development.' Again, this just goes to show: the entrepreneur is most important.
Extra incentive
Lumo Labs and Curiosity each have their own way of cranking that flywheel. Curiosity has a unique community model: all entrepreneurs who receive investments from the fund become co-owners of the fund and share in the profits. That's an extra incentive to help each other move forward. It works. You see that the entrepreneurs seek each other out more, because they have a common interest.' In addition, Curiosity has given away ten percent of its (future) profits as fund manager to a foundation that encourages entrepreneurship among underrepresented groups. Says Kienhuis, "That is critical to a thriving and balanced ecosystem; that we give more diverse teams opportunities to be entrepreneurs and shape our future.
Mentoring program
Lumo Labs was set up by entrepreneurs who started with angel investments after selling their companies. After a few years they set up the first fund and now they are active with the second fund. Based on their experiences, knowledge gained and network, Lumo Labs has created a mentoring program where the entrepreneurs in their portfolio help on individual needs. This program is based on four pillars: Excellent leadership, product market fit, Marketing & Storytelling and the next round of funding. 'Because ultimately, we are the first or second investor but not the last,' Lürling explains. "This program is very well received by 'our' startups.
In this way, an ecosystem can take flight, including in the Northern Netherlands. The level of ambition can go up. Local government and training institutes could put much heavier emphasis on entrepreneurship. Put the entrepreneur in the foreground, invest in good infrastructure, such as supercomputer clusters and the AI Factory, and remove barriers. Herman Kienhuis: 'Choose entrepreneurship, is my appeal. This is perhaps the best time ever to start a tech company in Europe. That common interest is felt everywhere.'
This may be the best time ever to start a tech company in Europe.
Herman Kienhuis, Curiosity Venture Capital
The importance of Curiosity and Lumo Labs for Groningen
'At the IFG, we invest in funds that help entrepreneurs in Groningen grow and innovate,' says Jan-Gerben Postma, investment manager at the IFG. 'Curiosity and Lumo Labs offer not only capital, but also guidance and a strong network. They strengthen the startup ecosystem and ensure that innovative companies can scale up faster internationally. This is how we are building a more entrepreneurial Northern Netherlands together.'