If you’re an entrepreneur based in the Netherlands with a great business idea but lack the initial seed capital and business funding to get your project off the ground, what options are open to you?
Many new businesses are funded out of the founder’s own pocket, or from loans from family and friends, but this is not always an option. The good news is, if you’re looking to start a new business in the Netherlands then there are still ways you can gain that initial investment you need to begin trading.
An angel investor is a type of individual who looks to invest in business projects and start-ups. Occasionally, an angel investor can be a part of an investment group, or angel groups that work together to make investments in businesses.
Often, an angel investor will invest in an idea or a person, at the very early stages of a business. They may also invest in a business at the stage where a business is looking to grow and expand.
In return for their investment in a business, angel investors will typically receive some of the equity (or part ownership) of that business. As the business grows and becomes successful, the value of that equity can increase, and this is how the angel investor makes money from their investment.
For Dutch entrepreneurs based in the Netherlands looking to attract angel investment there are a few things that can be done to increase your chances. The first thing to do is have a solid business plan. Even if you do not have a trading history and your business idea is still in the development phase, a well written and thought out business plan will help show any potential investor that you are serious and know what you are doing.
It may also help your chances to attract an investor if your business is based in one of the major sectors and industries that the Netherlands is popular for. Banking, tech, new media and agriculture are all popular industries.
When it comes to trading in the Netherlands, Rotterdam, Utrecht, Eindhoven and of course Amsterdam are all popular locations for start-ups and businesses in general.
Any Dutch business that exports to other countries around the EU or even globally may also be an attractive prospect to angel investors.
It’s worth noting that angel investors can be based in any country. Of course- you may be able to find an angel investor based in the Netherlands, but there is a good chance that the investment will come from overseas.
Not only do angel investors provide investment into businesses, but in some cases they can also provide advice, mentorship and other forms of business support. Some angel investors like to take an active role in the businesses they invest in, whilst others are more hands off.
When you’re looking for an angel investor it is a good idea to understand how much of a relationship you want with your business partner. Do you think you’d benefit from this additional support or would you prefer to go it alone? When you decide to gain angel Investment it’s important to find an investor that is the right fit for your business. Ultimately, the main reason for this is that you will want the partnership to be successful and you will also want a good working relationship with your major investors.
If you’re a Dutch entrepreneur looking for investment in your start-up or business, then the Netherlands Investment Network can help connect you with business angels looking to invest in businesses like yours. Sign-up today and start the process for finding funding.