Returns have declined, and capital that once seemed abundant has become scarcer in recent years. The Brabant Development Agency (BOM) invests in companies with societal relevance, while at the same time operating on a revolving basis: capital that is deployed must eventually flow back into the funds. Striking that balance is challenging, but the strength of the region’s technology base makes it possible.
Impactful innovations, for example in circularity or the processing of residual waste streams, do not always align with the return expectations of commercial funds. This is precisely why BOM sees it as its role to be active in these segments, albeit as part of a broad portfolio. Investing solely in societal relevance without a commercial perspective would mean that capital cannot continue to circulate.
“We are constantly looking for that balance,” Jansen says. “We need to make investments that have societal value, but we also need to ensure that our funds keep revolving.” To support this ambition, BOM has defined six focus areas where both financial returns and societal value can be achieved.
Why the market has become so complex
The pressure investors are facing is a structural consequence of changing economic conditions. Five years ago, interest rates were at zero or even negative. Borrowing money was virtually free, triggering a surge in venture capital. The years 2020 and 2021 were exceptional: valuations soared and exits took place at levels that now seem unthinkable.
That era is over. Rising interest rates have led to lower valuations, making shares and funds appear less attractive. The future profits they promise carry less weight compared to the secure returns that can be achieved today.
At the same time, the Netherlands is underperforming when it comes to investment in innovation. In 2025, R&D spending amounted to 2.3 percent of gross domestic product, significantly lower than in countries such as Germany, Belgium, the United States and South Korea.
Moreover, the Netherlands relies heavily on a small number of large companies. ASML and Philips dominate the R&D figures, while startups, however innovative, account for only a modest share in terms of volume.
What needs to happen to improve the investment climate? According to Jansen, the solution lies in three areas: increasing investment in R&D, strengthening the investment chain with subject-matter experts, and mobilising large pools of capital, particularly through pension funds.
More funding for R&D
For Jansen, the message is clear. The Netherlands must move towards the Lisbon target of three percent of GDP invested in R&D, an agreement made by the EU at the start of this century. That would require billions in additional funding.
However, government cannot do this alone. Innovative companies need sufficient incentives to invest as well. If enough capital flows from investment funds into innovative businesses, R&D investments by those companies will follow naturally.
“We operate at a very early stage of innovation at BOM,” Jansen says. “Our role is to help promising technologies scale faster and to ensure that there is sufficient capital available in the market.”
BOM does this not only by investing directly, but also by actively seeking co-investors. BOM always invests alongside others. “We have a very large network that we continuously expand,” Jansen says. “In addition, we strengthen the market by providing limited financial support to other funds so that they can grow as well. But to do that effectively, much more capital is needed.”
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BOM as a trusted fund with specialist expertise
In part because of its extensive network, BOM is known as a reliable partner with deep expertise. BOM sets rigorous conditions for its investments, develops governance standards, and is willing to move forward in areas where commercial funds tend to be hesitant at an early stage.
According to Jansen, however, the biggest differentiator lies in the experience and knowledge within the organisation itself. “Sixty percent of the people we hire have a technical background,” he says. “We deliberately focus on attracting people with substantive expertise, ranging from biomolecular sciences to artificial intelligence and photonics. That really makes the difference, for example during due diligence and in conversations with entrepreneurs.”
Over the past 30 years, Jansen has been involved in financing more than 3,000 companies and describes himself as “a bit of a beta.” He is careful to ensure that the team does not tilt too far towards a composition dominated by financially trained professionals. “You need a few bankers, but not more than that. A substantive discussion about quantum technology is beyond me. That’s where you need real specialists.”
This structural investment in knowledge has an impact across the entire Dutch ecosystem. BOM develops venture development programmes, contributes to the training of new investment managers in the Netherlands, and is working on a masterclass for venture developers who support entrepreneurs. “You need to learn from each other,” Jansen says. “That requires a sufficient number of cases and enough expertise.”
Mobilising pension capital
One of the biggest bottlenecks in the Netherlands is the limited availability of capital for growth at scale. Many funds are too small to provide scale-ups with sufficient funding. Funds with assets of 125 to 150 million euros typically lack the capacity to offer companies the 30 to 40 million euro tickets they need. “It’s gridlocked,” Jansen says. “Many funds are simply too small, even in the early stages. That’s often where we as BOM have the most room to manoeuvre. That is not a good sign.”
This is why mobilising more pension capital and savings is crucial, Jansen argues. Dutch pension funds collectively manage nearly 1,900 billion euros, yet invest very little in venture capital. Not because of unwillingness, but because of scale-related constraints. “For pension funds, a 50 million euro ticket is small,” Jansen explains. “Managing all those small investments individually takes far too much time and money. Over the past two years, I have fortunately seen more investment activity in the Netherlands, but progress is too slow.”
A solution is now emerging. Invest-NL is working on a fund of 600 to 800 million euros in which pension funds can participate. That fund will in turn invest in private funds, making participation simpler and more efficient for pension funds. “Pension funds invest in a single fund and receive a diversified portfolio in return,” Jansen says.
BOM has previously organised pension fund dinners to kick-start the conversation around this topic. Jansen sees significant opportunities ahead. “A quarter of a percent of the investable assets of Dutch pension funds equals what the Netherlands spends annually on R&D. That puts things into perspective.”
National investment bank
Another promising development to mobilise more capital is the initiative to establish a larger national investment bank or institution. This investment institution would enable large-scale investments and help address major societal challenges such as the energy transition, infrastructure and housing. Supporters include TechLeap’s figurehead Prince Constantijn of Orange and former ASML CEO Peter Wennink.
They argue that, unlike many other European countries, the Netherlands lacks a strong national investment institution that brings together public and private capital for large-scale and higher-risk investments. “This initiative could make a significant public contribution, mobilise private capital and build on what has already been established with Invest-NL,” Jansen says.
Stable policy: the importance of the Innovatiefonds Brabant
A key milestone of the past year is the extension of the Innovatiefonds Brabant until the end of 2045. The fund was established following the privatisation of Essent. It started with 125 million euros and, among other things through successful exits, has grown to a value of approximately 250 million euros.
Success, however, is not measured by financial performance alone, but also by continuity. “It is important that we can continue to pursue our strategy,” Jansen says. “We have invested in companies and in the team. It is encouraging to once again receive the confidence to build on that foundation.”
Looking ahead to 2026
The major challenge for the coming years is scale: ensuring that promising companies are able to grow. The Netherlands has been overtaken internationally, Jansen says. “If we want to keep up at all, we will need to take additional steps.”
That is why BOM will continue to focus on building stronger funds, improving conditions, deepening collaboration across the ecosystem, and mobilising larger flows of capital. It will also continue to invest in attracting the right people: specialists who truly understand innovation.
It remains a challenging industry, but Jansen is optimistic. “We do this work because we know what it can deliver for Brabant and for the Netherlands. And because we believe that the best ideas deserve a chance, even in a difficult market.”
