Venture Debt - Netherlands | Statista Market Forecast

The total Capital Raised in the Venture Debt market market in Netherlands is forecasted to reach US$457.20m in 2024.
Traditional Venture Debt holds the dominant position in the market with a projected volume of US$366.90m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$22.4bn in 2024).
In the Netherlands, Venture Debt is gaining traction as a strategic financing option for startups amid a growing interest in alternative capital raising methods.

Definition:

The Venture Debt market refers to a form of equity and debt financing combination, which is used to finance early stage and growth stage capital-backed companies. Besides equity funding rounds, business can seek venture debt that minimizes ownership dilution and governance requirements to increase the cash runway to reach the next milestone or even provide a cushion for delays.

Structure:

The market consists of two segments:
- The Traditional Venture Debt market refers to a form of debt financing that is often provided to venture-backed companies to either buy new equipment, meet a deficiency of short-term capital, or support expansion plans.
- The Growth Venture Debt market refers to a form of debt financing that is often structured with warrants or options, which provides a rapid development stage in which businesses can support their long-term oriented growth plans.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Key players in this market are companies such as Wells Fargo and Hercules Capital.

Use the info button next to the boxes for more information on the data displayed.

Venture Capital
Venture Debt funds are sponsors by governments

The Venture Debt market in Netherlands has experienced significant growth in recent years, driven by customer preferences for alternative financing options, favorable market conditions, and a supportive regulatory environment.

Customer preferences: Entrepreneurs and startups in Netherlands are increasingly turning to venture debt as a financing option due to its flexibility and lower cost compared to traditional equity financing. Venture debt allows companies to raise capital without diluting ownership stakes, which is particularly attractive for founders who want to retain control of their businesses. Additionally, venture debt provides startups with the necessary capital to fund growth initiatives, such as product development, marketing, and expansion into new markets.

Trends in the market: One of the key trends in the Venture Debt market in Netherlands is the growing number of specialized venture debt providers. These providers have deep industry knowledge and are able to offer tailored financing solutions to startups in specific sectors, such as technology, life sciences, and renewable energy. This specialization allows them to better understand the unique needs and risks associated with these industries, and provide financing solutions that are specifically designed to meet the requirements of startups in these sectors. Another trend in the market is the increasing use of venture debt as a complementary financing tool alongside equity financing. Startups are now combining equity investments with venture debt to optimize their capital structure and minimize dilution. This approach allows startups to raise larger funding rounds while maintaining a greater degree of control over their businesses.

Local special circumstances: The Netherlands has a vibrant startup ecosystem, with a strong focus on technology and innovation. The country is home to a number of successful startups and scale-ups, particularly in sectors such as fintech, e-commerce, and clean energy. This favorable environment has created a demand for venture debt as startups seek to accelerate their growth and capitalize on market opportunities. Furthermore, the Dutch government has implemented various initiatives to support entrepreneurship and innovation, including tax incentives and grants for startups. These initiatives have helped to create a favorable environment for venture debt providers and startups alike.

Underlying macroeconomic factors: The Venture Debt market in Netherlands has also been influenced by macroeconomic factors. The country has a stable and well-developed financial system, which provides a solid foundation for venture debt providers. Additionally, low interest rates in the Eurozone have made debt financing more attractive, as the cost of borrowing is relatively low. Furthermore, the Netherlands has a highly educated workforce and a strong culture of entrepreneurship, which has contributed to the growth of the startup ecosystem. These factors, combined with a supportive regulatory environment and favorable market conditions, have created a conducive environment for the development of the Venture Debt market in Netherlands.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.