Dutch MoD unveils new €100M ‘SecFund’ to support homegrown companies working towards a safer Netherlands

Dutch Ministry of Defence, on Tuesday, announced a new investment fund — the SecFund (‘Security Fund’) with a fund capital of €100M.

The announcement comes as the Ministry of Defence, the provinces, the Ministry of Economic Affairs, the regional development companies, and industry are joining forces for national security, innovation, and economic growth.

Fund utilsation

According to research by the European Union, companies in the defence sector experience a higher threshold for obtaining financing than companies in other sectors.

Raising risk capital is a major challenge not only because these companies’ capital requirements are very high but also because financiers are reluctant to invest in the defence industry.

The SecFund must bridge this gap.

The fund will support Dutch startups, scale-ups, and innovative SMEs that focus on solutions for both the civil and security sectors, where access to growth capital is often a challenge.

“With the SecFund we support start-ups and scale-ups in a crucial phase to jointly arrive at innovations for a safer Netherlands,” says Gijs Tuinman, State Secretary for Defence.

From advanced data transmission (LiFi) to quiet factories and drones, the focus is on technologies that make it safer and more efficient.

The fund plans to invest up to a maximum amount of €5M per company.

The SecFund is a national collaboration between the Ministries of Defence and Economic Affairs and the regional development companies (ROMs). 

The Brabant Development Company (BOM) will manage the fund in partnership with other ROMs. The fund is expected to open in January 2025, and interested companies can register at that time.

“The business community can make an unprecedented contribution to the innovative power of defence and vice versa. The SecFund thus strengthens the strategic autonomy and economic security in the Netherlands and contributes to the earning capacity in the long term,” says Brigit van Dijk – Van de Reijt – General Manager of BOM on behalf of the nine regional development companies.

Linco Nieuwenhuyzen, Head of Innovation & Head of Investment a.i. At InnovationQuarter, says, “Innovation in dual-use technology requires partners who understand the complex markets and are willing to share risks. At InnovationQuarter and the collaborating ROMs, we provide a solid foundation with which companies can grow and develop with our sector knowledge, investment expertise, and targeted guidance. Previous research commissioned by the Province of South Holland has shown that there are many opportunities for this in our region. The SecFund gives them the financial strength needed to keep companies competitive and strengthen their position in both the civil and defence markets.”