Dutch government backs VC fund

Icos Capital, a Dutch venture capital firm, has launched a food, energy and waste venture capital fund with a €4m participating loan from the Dutch government.

Icos Capital, a Dutch venture capital and advisory firm, has launched a technology fund focused on the food, energy and waste sectors, with backing from the Dutch Ministry of Economic Affairs and three domestic industrial corporations.
Peter van Gelderen, partner at Icos Capital, said that Dutch Technology Fund I has a target size of €15 million to €20 million ($19.2 million and $25.6 million) and is expected to reach a second and final close by the end of the year. A first close, for which no target was disclosed, is expected in September.
The Dutch Ministry of Economic Affairs has backed the fund with a €4 million participating loan. CSM, a Dutch bakery supplies and food ingredients business, has committed €2 million in the fund. Imtech, an information and communications technology and electrical and mechanical engineering business, and Farm Frites Beheer, a potato products company, also invested undisclosed amounts.
Van Gelderen said that the fund has a target IRR of 40 percent with cash to be returned to the Dutch government after its private investor limited partners: “The first profits from the fund will be shared 20 percent to government and 80 percent to private investors until the private investors get their money back. After that, it will be split 50:50.”
Private investors have also invested in the fund, added Van Gelderen, and more corporates are being targeted for the second and final closing.
Icos Capital was established earlier this year by managing director and partner Nityen Lal, formerly at Netherlands-based investor AlpInvest and Deloitte. Lal works alongside partners Van Gelderen and Fred van Efferink, a 28-year veteran of the Dutch venture capital and private equity industry.