Benelux venture capital market still struggling in comparison with rest of Europe
The venture capital market for new technology companies in the Benelux countries (Belgium, the Netherlands and Luxembourg) is still struggling to recover following the global dotcom collapse in 2000. As reported by the European technology website Tornado Insider, total investment by Benelux venture capitalists in 2004 has so far reached 164 million euro - still below the relatively modest level of 171 million euro reached in 2003. In the past few years, unfavourable conditions have led many of the best known venture capital firms (including Glide, Residex and P3) to cease or downscale their activities in the Benelux countries. There are some encouraging signs that a recovery may be just around the corner, however, as Dutch venture capitalists Solid Capital Partners announced that it intends to raise a new fund for established or later-stage technology firms. The company, which also has a partner organisation in Brussels, has decided to keep its focus close to home and only invest in Benelux ventures. 'The fundraising from European and US-based institutional investors has been going on for a few months and we expect to be able to close the 75 million euro fund in [the first quarter of] 2005,' revealed Solid Capital Partners co-founder Robert Wilhelm. According to Mr Wilhelm, the fundraising climate in the Benelux countries is still challenging - especially for technology companies - but he believes that a new cycle of investment may now be starting. With continued under-funding of high tech companies and a distinct lack of competition in the venture capital market, Mr Wilhelm sees a great opportunity for success for Solid Capital Partners' new fund.
Kraje
Belgium, Luxembourg, Netherlands