Angel investors in the Netherlands tend to invest in companies they understand and where they can contribute to the management decision. Since Angel investing is based on personal preference they gravitate towards products they themselves might use. Find out about the different types of investors in the Netherlands, what kind of industries they mostly invest in and what is the best way to approach Angel investors.
Types of investors/investor groups in the Netherlands
There are a lot of investors who are willing to invest between three and five million € in a MedTech company with a very good product. It is much more difficult to raise an amount below three million and for a company that isn’t MedTech. There are some successful entrepreneurs, who are investing capital in new companies, particularly in web and app startups, and they are very good. But there is not enough of them and they’re not active enough. Even though the scene is fairly small, Leapfunder is by now a substantial piece for Angel investors in the Netherlands.
The industries Angel investors in the Netherlands mostly invest in
Angel investors in the Netherlands tend to invest in companies they understand and where they can contribute to the management decision because they understand the industry. Most MedTech companies require a very specific technical know-how, so Angel Investors tend to hesitate unless they’re very specialized. They tend to invest in web and app tech companies. Since Angel investing is based on personal preference they gravitate towards products that they themselves might use. If it’s something that an Angel investor himself would never use, the company will struggle a little bit more to find funding. If you’re supplying something they would use themselves, they’re much more willing to invest.
The best way to approach Angel investors in the Netherlands
In the Netherlands and everywhere else in the world, you should make business friends with the investor first. If the person feels they can understand your team, your business and that they’re contributing to it, that person is much more likely to invest in the company. Angel investors in the Netherlands want to be a part of the company in every possible way.
Learning a good pitch is also useful because it forces you to be clear on how much you want to say. But once you learn the static pitch and have the information in your mind you really want to build a proper relationship. You have to find ways in which an investor can interact with your team, your company, your proposition and the way you think. The best way to approach Angel investors in the Netherlands is to ask them to join your team, have them sit with you and think about your business for a few hours, few days or few weeks. Static pitching is useful for you and to reach larger audiences, but the high-quality interaction with an investor is really critical.
What Angel investors in the Netherlands struggle with most
There are a couple of challenges Angel investors in the Netherlands struggle with. The first thing is that after a round of Angel investment in a startup, that startup would likely want a raise between half a million and three million from a professional investor. The problem is that the market is underdeveloped, and there are no follow-on investors.
Another thing, that’s improving quickly but it could be better, is the standardization of contracts and certain kinds of processes. In a place like Silicon Valley, pretty much every shareholder agreement is the same. In the Netherlands, there is a lot of variety, and the country would benefit the standardization of legal structures.
Networking with Angel investors in the Netherlands
Leapfunder Round Table Sessions are probably one of the best events to meet Angel investors in the Netherlands. There are a lot of active investors and good startups at one place, the event is held every month and it’s pretty anonymous – you can slip in and slip out without anybody expecting much from you. It gives investors a lot of time to think and a lot of time to start investing at their own pace. Angel investors in the Netherlands also benefit from annual conferences such as Amsterdam Capital Week and accelerators’ Demo Days.