Belgian Growth Fund: growth capital for young companies
The Belgian Growth Fund, set up to provide growth capital to Belgian young companies with growth potential (scale-ups), made its first investments in 2019. The BGF does not do so directly, but puts money into investment funds that scout for growth companies, such as a new fund by venture capital specialist Jürgen Ingels.
Although there has been much more funding for tech and growth companies in recent years, Belgium still scores significantly lower than forerunners such as Sweden. In many countries, funds of 1 billion or more are no exception. The Belgian Growth Fund, inspired by a similarly successful model in Denmark, should (somewhat) change this: as an ‘umbrella fund’, it will support funds that invest in promising Belgian companies and help them grow, also internationally. In an initial closing, it smoothly raised 213 million in autumn 2019, later rising to 278 million euros. The fund of funds raised funds from institutional investors, such as banks and insurance companies, as well as from wealthy families.
Broad technology fund
The first investments immediately followed at the end of last year as well. The largest capital injection came in Smartfin Capital II from venture capital specialist Jürgen Ingels. Because tech companies today need to invest faster and more than before, that fund was set up as a broad technology fund that invests in a dozen European companies, with a focus on the Benelux. Belgian portfolio growth companies therefore do not have to knock on the door of only foreign investors too early, and can thus remain locally anchored. After all, it is difficult to relocate a company that is well embedded in the local ecosystem, achieves some turnover and already has a lot of employees. Smartfin II raised EUR 239 million from institutional investors, as well as from business families, including Marc Coucke.
Venture fund
Besides investing in Smartfin Capital II (a EUR 25 million stake), BGF also invested in Fortino Capital II (EUR 20 million) and in the fifth fund of investment company Sofindev (EUR 20 million). Fortino is the venture fund of former Telenet boss Duco Sickinghe, which focuses on investing in mature growth companies from our region with a second fund. Sofindev was in turn set up by the Boël holding Sofina and the Colruyt distribution group. The fifth fund from the Sofina stable aims to support growing SMEs through debt-financed acquisitions and growth capital.
Visit the website of Belgian Growth Fund
