LRM launches BIZkapitaal to target young companies

The Limburg Investment Company (LRM) has launched BIZkapitaal, a new venture capital product aimed at start-up companies and companies less than two years old. Typically, LRM invests between EUR 225,000 and EUR 500,000 in start-up projects, whereas the maximum BIZkapitaal-commitment can be as much as three times the financial contribution of the founders of a start-up company. In terms of its venture activity, BIZkapitaal will aim to take stakes of between 25% and 45% in investee companies, and the fact that only equity investments will be made in such transactions distinguishes BIZkapitaal from other LRM products. Majority shareholdings may be taken under the scheme, but in such instances the equity commitment will be combined with a subordinate loan

High-tech projects as well as innovative investment projects in the old economy are of interest to BIZkapitaal. Furthermore, BIZkapitaal is willing to act as a partner in designing the business plan and structuring of the financial and legal aspects of the transaction. BIZkapitaal has also entered into an agreement with the Government Participatie Fonds under which for every "1 committed by BIZkapitaal the Participatie Fonds pledge to match the figure in the form of a subordinated loan at special intrest rates. At present BIZkapitaal has around 50 applicants for funding and has finalised two investments, details of which will be disclosed in late August. BIZkapitaal currently has a three-strong management team, and is expected to recruit two more partners in the near future

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