Innovation Fund North Holland closes POC1 with 53 convertible loans granted; launches POC2

Innovation Fund North Holland, an initiative to support entrepreneurs in the province of North Holland, announced last week the closure of its Proof-of-Concept fund 1 (POC1) after granting its 53rd convertible loan.

With the successful closure of POC1, the attention now shifts to the next phase of financing as the Proof-of-Concept fund 2 (POC2) has been formally initiated. 

The decision to launch POC2 was signed by the ERDF as part of the Opportunities for West 3 programme. 

This new fund is open to accept new applications. POC2 is particularly noteworthy as it becomes the first financing instrument to receive funding from Kansen voor West 3 in the Netherlands.

Innovation Fund North Holland: Proof-of-Concept fund 2’s mission

The goal of POC2 is to provide 42 convertible loans over a period of 7 years to startups and SMEs in North Holland. The available funding from POC2 amounts to more than €14 million, specifically targeting innovative companies in the Proof-of-Concept phase. 

This new fund is crucial in ensuring the continuity of financial support for aspiring entrepreneurs in the region. The successful opening of POC2 also means that the second fund of the Innovation Fund North Holland is now fully paid up.

Proof-of-Concept fund 1

The Proof-of-Concept fund 1 (POC1) came from the European Regional Development Fund (ERDF) through the Opportunities for West 2 programme. In 2020, additional funds from the REACT programme were made available to INH.

Over the past five years, POC1 has successfully provided 53 convertible loans, totaling over €14.5M in financing. 

These loans were primarily directed towards projects in sectors like Hightech Systems, Life Science, Health, and ICT. Among the 53 loans, thirteen were converted into equity, four defaulted, and one was fully repaid.

Innovatiefonds Noord-Holland: Provides convertible loans

The Innovation Fund North Holland is an initiative of the Province of North Holland, the University of Amsterdam, Vrije Universiteit, Hogeschool van Amsterdam, Amsterdam UMC, and Sanquin, with support from the European Union through the European Regional Development Fund. 

INH manages two funds: the Proof-of-Concept (POC) fund & the Early Phase Fund (VFF) fund. The POC fund is for entrepreneurs with a relationship to one of the participating knowledge institutions.

The VFF fund is for innovative entrepreneurs in North Holland without such a relationship.