Factsheet: Financing Instruments

Financing Instruments

Key Information
Description: 
Biobased Delta noticed from the outset that accelerating the transition to a biobased economy could not be funded by businesses alone. Long-term research programmes are being established for larger businesses in partnership with knowledge institutes and smaller, high-level technology companies. SMEs can also participate in these programmes. Specific programmes are also available for SMEs. Government contributions originate from the central government, provinces and the EU. The following resources are available for taking advantage of new market opportunities for biobased materials and raw materials: • The Innovation and Development Fund for clusters of companies working on their business case, in which provincial funding is made available on a rotating basis (with assistance from BOM [Brabant Development Agency] and Impuls). This entails that business owners with a successful concept pay back the money invested by government with interest payments. It is anticipated that a portion of projects will ultimately be unprofitable. Innovation goes hand in hand with large financial risks and cannot be financed by the private sector alone. This is the role that the Provinces of Noord-Brabant and Zeeland aim to fulfil in order to support innovative SMEs with their new products and/or processes. This Development Fund will become available in Noord-Brabant for start-ups in the so-called ‘pre-seed’ phase since 2013. In the Province of Zeeland a comparable fund (Innogo) is in place. With these funds, the provinces are aiming to help SMEs innovate wherever funding does not otherwise exist or cannot be easily found on the capital market. • With the Development Fund (for feasibility studies) and Innogo, the provinces are endeavouring to encourage a move towards venture capital funds available privately, but also publicly. The Province of Noord-Brabant has set up a Biobased Brabant Fund specifically for SMEs that is primarily aimed at providing seed and early-stage growth capital. The Zeeland Participation Fund and Zeeland Investment Fund are available in Zeeland. • These and similar provincial, state and EU instruments will be utilised to the fullest extent possible in the coming years. They are extremely important for familiarising SMEs with the opportunities of biobased products and processes. The voucher scheme of the Province of Zeeland allows individual business owners to quickly assess whether their ideas are viable. • The South-western region has also been particularly successful at attracting cluster project funding, e.g. for various IPCs (Innovation Performance Contracts) and RAAK (Regional Attention and Action for Knowledge) project
Goal/Aim: 
Financing of SME's for bio based innovations

Type (and subtype) :

Status: