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- Trend snippet: There is a modest and fragmented supply of venture funding
Trends in Security Information
The HSD Trendmonitor is designed to provide access to relevant content on various subjects in the safety and security domain, to identify relevant developments and to connect knowledge and organisations. The safety and security domain encompasses a vast number of subjects. Four relevant taxonomies (type of threat or opportunity, victim, source of threat and domain of application) have been constructed in order to visualize all of these subjects. The taxonomies and related category descriptions have been carefully composed according to other taxonomies, European and international standards and our own expertise.
In order to identify safety and security related trends, relevant reports and HSD news articles are continuously scanned, analysed and classified by hand according to the four taxonomies. This results in a wide array of observations, which we call ‘Trend Snippets’. Multiple Trend Snippets combined can provide insights into safety and security trends. The size of the circles shows the relative weight of the topic, the filters can be used to further select the most relevant content for you. If you have an addition, question or remark, drop us a line at info@securitydelta.nl.
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There is a modest and fragmented supply of venture funding
• There is a modest and fragmented supply of venture funding, spread over regions, sectors, funding stage and fund type (private/ public).
• Overall deal sizes are small causing a relatively small overall impact, where only a few funds invest in multiple stages.
• There is a specific shortage of early and late stage funding and venture debt.
• Dutch VC find it hard to attract Dutch institutional investors in their funds and there is for now low presence of focused foreign VC that could provide material contribution in terms of capital and best practices.
Notwithstanding a steady increase in deals, venture capital (VC) fund investment volume and a number of government support programs, The Netherlands is still a long way from realising this vision. There are a variety of issues signaled in the ecosystem and although qualitative data is not readily available, the challenges are apparent. • There is a modest and fragmented supply of venture funding, spread over regions, sectors, funding stage and fund type (private/ public). • Overall deal sizes are small causing a relatively small overall impact, where only a few funds invest in multiple stages. • There is a specific shortage of early and late stage funding and venture debt. • Dutch VC find it hard to attract Dutch institutional investors in their funds and there is for now low presence of focused foreign VC that could provide material contribution in terms of capital and best practices. Addressing barriers and bottlenecks In recent years there have been several initiatives to address a range of investment issues in different sectors, regions and fundings stages. Through StartupDelta initiatives we have gathered information and expertise that will help drive some action, yet several problems require a more in depth analysis before leaping into any implementation. One barrier is that most family offices and institutional investors still hesitate to invest in VC funds or directly in ventures. This suggests that the biggest pools of available capital in the Netherlands are not convinced that scaleups and VCs have an adequate risk return ratio. Actual numbers suggest that investment appetite for these ventures in some other European ecosystems, such as Sweden and recently France, is materially larger. This contradicts the Dutch view. Success stories are available in the Netherlands, but fund managers point to the following barriers: • The small size of investments, and relatively high administrative costs. • Mismatch of venture risk profiles with appetite for risk. • The unpredictable and uncertain deal flow, referring to potential lack of available investment ventures, cultural and organisational mismatch and reputational risk caused by failures and high commissions. If some of the local impediments are addressed these pools of capital can become available to VC investors.