The Investment and Development Company (NOM) invested more than twice as much in 2023 as in previous years. Also, through "Gold of the North," efforts were made to strengthen project proposals that contribute to further ecosystem development. In addition, there is an increasing focus on challenge-based innovation. ''This is how we are working on the future earning capacity of the Northern Netherlands,'' says director Dina Boonstra.
That NOM was able to invest more had to do with successful exits in recent years. Investments were made in various innovative startups, scale-ups and broader SMEs. Piece by piece they contribute to a more sustainable, healthier or smarter Northern Netherlands.
Equally important is a new strategy that is beginning to bear fruit. Dina Boonstra: ,,We have already been working for a few years on looking at the economic North Netherlands in a more sector-oriented way. We have designed our own organization accordingly. That means teams dealing with green chemistry, Life Sciences, energy, water, agrofood and HTSM. That helps strengthen networks and build expertise. It also enables the sectors to attract larger subsidy projects and thus increase innovation power.''
NOM results 2023 in brief:
- - 3 new innovation projects with a total value of €72.8 M;
- - 5 innovative companies and 3 startups chose Northern Netherlands as their location;
- - 41 new investments in innovative startups, scale-ups and broader SMEs;
- - RUG research on strength of the North completed.
Collaboration
The same is true of the collaborations NOM is putting more effort into, which Dina Boonstra believes are essential to help the northern Netherlands move forward. ,,Together we achieve much more. By joining hands more with all the first-line organizations GroBusiness, Ik Ben Drents Ondernemer and Ynbusiness, as well as Innovation Pact Fryslân, Groningen Seaports and New Energy Coalition, we get more development power."
Together with the RUG, the Ministry of Economic Affairs and Climate and EBNN, the project 'Gold of the North' is working on strengthening project proposals and establishing connections between parties in the North that can contribute to the development strength of the Northern Netherlands. Project proposals can be submitted for the National Growth Fund.
In the field of innovation and startups, the same applies. Foundation Founded in the North (amalgamation of Founded in Groningen and Founded in Friesland) came into being in 2023, a typical example of the closer cooperation. Dina Boonstra: "The goal is to help more deep-tech startups grow faster because programs and funding are better aligned."
Challenge based innovation
Another development characteristic of 2023; challenge-based innovation. Linking a challenge, and thus solutions, to a 'problem'. Dina Boonstra: "We are there for entrepreneurs and networks that come up with solutions, but we also want to think about them ourselves. To be able to do that, we need to know where the problems are. We do that through Challenge Based innovation, among other things. We have issued challenges in the areas of green chemistry and prevention in healthcare. You see that it works to get people together and find solutions.''A good example is Aquacycl, in 2023, partly thanks to the efforts of NOM and NFIA, located on the water campus in Leeuwarden. They entered the Sustainable Industry Challenge organized by Chemport Europe and won the challenge from BASF. "The fact that BASF issues a challenge to which startups from all over the world respond and then a new company with the perfect solution sits nearby is wonderful to see."
The environment
The world was turbulent in 2023. Foreign conflicts affected the economic engine of the Northern Netherlands, but domestic developments also affected, and still do. The nitrogen crisis, grid congestion, a shortage of clean water, personnel shortages. Companies are struggling with them; NOM must also relate to them. Dina Boonstra: ,,You see that it is becoming more difficult to get construction projects off the ground, and that means that foreign companies are more hesitant to come here. Still, we managed to attract five companies and three startups.''
That attraction follows the "volume to value" approach. Also something that had been policy for some time, but became more visible in 2023. The approach means that NOM looks at the value of a company fitting within existing ecosystems. Employment alone is no longer leading. In addition to this, TopDutch has launched the "What is your missing link" campaign with the aim of identifying what is currently missing in terms of technology or expertise. With the insights from this campaign, missing links can be sought in a targeted way to further strengthen ecosystems.
Growth of portfolio
Last year, investments were made in 41 innovative startups, scale-ups and broader SMEs. Piece by piece they contribute to a more sustainable, healthier and smarter Northern Netherlands. Including follow-on investments and investments from existing commitments, NOM reached 51 investments. The total investment size is 22.4 million euros. By the end of December 2023, NOM will have 105 companies in its portfolio. A growth of almost 18% compared to 2022.
NOM's income consists of interest, dividends and the sale of NOM's interest in portfolio companies. The 2023 financial year closed with a negative result of €1.2 million. This is due to higher write-downs on NOM's portfolio due to more participations and loans with a higher risk profile.
NOM celebrates 50 years in 2024
NOM exists half a century this year. Fifty years they are in which the North became increasingly powerful and grew from a region that could use support to the TopDutch region that leads the way in numerous fields. The strength of the North is therefore the theme of NOM's anniversary year. An anniversary means looking back, but also looking forward. Together with the RuG, 2023 examined the past and developed scenarios for the future. Scenarios that stimulate future discussions, bring collaborations further and strengthen the future earning capacity of the Northern Netherlands.
Click here to view the 2023 Annual Report which details ongoing projects, programs and developments.