Rise in Dutch Cyber Security Investment Funds

Within the last few days several initiatives which boosts capital for cyber security in The Netherlands have been portrayed in the media. A group of Dutch investors created a fund of €8 mln for start-up IT businesses that focus on cyber security. Initiator of this fund is privaty equity firm Value Creation Capital. The Private equity firm is motivated by the rise in the fight against online and financial crime.

Security of Things Fund

Participants within this new fund, named Security of Things Fund, are investeringsmaatschappij Reggeborgh, Stichting Heid (city of The Hague) and Participatiemaatschappij Oost Nederland. HSD partner KPN Ventures agreed with the fund that they can participate within follow-up investments for cyber security companies. KPN Ventures is the investment branch of KPN and concetrates on digital security. The €8 mln fund is going to be invested in participations between €500.000 to €1mln per investment.

Keen Venture Partners Fund

In addition KPN further announced that they will also invest in the fund of Keen Venture Partners. This venture investor has an initial fund of €90 mln. This investment fund of father and son Verwaayen and former TomTom director Alexander Ribbink is going to focus on young European growth ventures, primarily technology companies from the UK, The Netherlands, Sweden and Germany, but also American start-ups that want to settle in Europe are welcome. Keen Venture Partners is going to invest between €5 and €10 mln in each participation. Keen Venture Partners collects most of the funding from government funds and large cooperations. The total sum of the fund will come down to €150 mln by mid 2017.

Economic Growth & Digital Economy

This increase in funding for cyber security is in line with the narrative of HSD. The private sector needs to be stimulated to upgrade their levels of cyber security. The Netherlands has an excellent digital infrastructure and is one of the most ICT-intensive economies of Europe. Over the past 25 years more than a third of the economic growth is related to digital technology. This offers many economic opportunities and possibilities for innovation. In addition to these opportunities there are also many threats when it comes to the security of the digital infrastructure. Several reports show the vulnerabilities and threats of the ICT intensive economy. Inadequate security and outdated software are some of the weaknesses of our digital security.

HSD Partners & Funding

Several HSD partners gained capital injections through funding this past one and a half year. In 2015 Authasas received funding through InnovationQuarter’s Additional Funding. Onegini received €1.5 mln last year from InnovationQuarter (and The Hatch Firm) for their Mobile Security Platform last year. Vortex Capital Partners, a Dutch venture- and buyout capital firm, enhanced capital for HSD partner Riscure in November 2015. In 2016 the year started well for Robot Robots Company. After their pitch during the HSD Access to Capital Event in February, they received €5 mln funding through InnovationQuarter. In May  EclecticIQ raised 5.5 Million from KPN Ventures and INKEF Capital. Security startup Redsocks recently received €2.7 mln in July of this year through an investment round and in September SecurityMatters raised over 5 million dollars funding from four prime investment groups. 

Access to Capital

Capital is essential when it comes to transforming great ideas and innovations into functional systems and products. InnovationQuarter recently launched a new €22 mln proof-of-concept fund for innovative technologies fund. Through the HSD Access to Capital programme innovative parties receive up-to-date information on possible funding and financing options during the different stages of the innovation process and project (proposals). The HSD Office offers finance matchmaking instruments to its partners. These instruments are: guidance leading towards innovative financing and funding, as well as creating connections between entrepeneurs and investors.

Sources used:

Financieel Dagblad

Financieel Dagblad

KPN