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July 4, 2024

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Invest-NL supports Dutch SMEs with European funds via Polestar Capital Fund

Invest-NL is proud of its contribution to the Polestar Circular Debt Fund (PCDF), which has now reached a target of € 240 million. This fund, specifically aimed at supporting Dutch small and medium-sized enterprises (SMEs) in the circular economy, has recently attracted € 43 million in new investments. These investments include € 30 million from the European Investment Fund (EIF), of which € 10 million is provided by Invest-NL under the Dutch Alternative Credit Instrument (DACI). Additionally, Realdania and Oost NL are contributing to the investment.

The DACI is a joint initiative of EIF and Invest-NL, aimed at bridging the financing gap for innovative and sustainable companies. This initiative specifically focuses on enabling investments in the circular economy, where traditional financing methods often fall short. See also Dutch Alternative Credit Instrument begins with European support

By effectively deploying European funds for Dutch companies, Invest-NL strengthens the position of the Dutch SME sector in sustainability and innovation. The Polestar Circular Debt Fund targets companies that are in the demonstration phase of their product or technology. These companies often face challenges in securing funding to establish their first commercial production facility. The fund enables 20-30 companies to scale their innovative technologies and business models, replacing traditional value chains with more sustainable alternatives.

Ulrike Kostense, senior investment manager at Invest-NL, emphasizes the importance of this collaboration: “We are pleased to contribute to the Polestar Circular Debt Fund. By bridging the funding gap for innovative circular manufacturing companies, Polestar finances innovation and accelerates the transition to a circular economy. This is fully aligned with our mission to promote sustainable innovation, which delivers both positive environmental impacts and economic benefits.”

Previously, Invest-NL had already invested €25 million in the Polestar Capital fund. Read the article

Questions about this topic? Ulrike is happy to help!

Ulrike Kostense

investment principal fund investments

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