The MKB Fonds Drenthe was created in 2014 because banks were not lending as easily after the crisis. And with success: since then, more than 65 companies have been supported. With which 100 new jobs have been created and more more than 500 have been retained. A total of 12.2 million euros was pledged, which in turn ensured that other financiers invested over 35 million euros in Drenthe SMEs. In short: great results are being achieved. The MKB Fonds Drenthe will receive an additional 10 million for the next 15 years.
In fact, the bottom is in sight. This is because it can take up to 7 to 8 years for the investments to come back. That is why the Provincial Executive has proposed to Provincial Council to provide another loan, of 10 million this time. Dave de Groot, Investment Manager at MKB Fonds Drenthe: 'This money is very welcome. After all, we see an increasing need for funding from SMEs now that support measures from the national government are being phased out.'
For companies with growth ambitions or social impact
SMEs in Drenthe with substantial growth or innovation ambitions or social impact entrepreneurs can apply to the MKB Fund Drenthe. It is often difficult to obtain funding from a bank. MKB Fonds Drenthe acts as a crowbar: if it is willing to invest, other financiers usually follow suit.
But you don't get funding overnight: there is a thorough analysis before a funding proposal is submitted to the Investment Committee. If there is sufficient confidence in the plans and the entrepreneur, funding is provided in the form of a loan or equity participation. Drenthe entrepreneurs can borrow amounts from € 10,000 to a maximum of € 1.5 million. Co-financing from another party is a requirement. And once the company can stand on its own two feet, the loan is repaid and/or the shares are sold. MKB Fonds Drenthe usually stays involved for about 6 to 7 years.
Dave anticipates that MKB Fonds Drenthe's complementary role in the current capital market will not diminish in the coming years. 'Start-ups and growing companies with a higher than standard risk profile have difficulty obtaining funding. We ensure that different financiers come together and together we help a promising company move forward. This reduces the risk for all of us, while the impact for the Drenthe economy is enormous. It would be a shame if we could no longer use our experience and accumulated network.'
Are you looking for funding yourself?
As MKB Fonds Drenthe, we support your promising initiatives with customized funding and credit, aimed at the growth and innovation of your (social impact) business. Feel free to contact us to see what we can do for you!
In this white paper you will learn:
- What you have to deal with when you start working with investors
- Differences and similarities between bank funding, subordinated loan and equity capital
- In what ways NOM as an investor can help you
Please note that this whitepaper is only available in Dutch at the moment. We are in the process of translating this whitepaper.