Rabobank invests 1 billion euros in Brainport.

Marc Cootjans (left) and Gerard Zwartkruis from Rabobank Region Eindhoven want to invest in young innovative companies like those located at Strijp T and Strijp S. © Fotopersburo van de Meulenhof bv

EINDHOVEN - Rabobank Regio Eindhoven will make 1 billion euros specifically available for financing companies in Brainport. The bank will allocate 100 million euros for starting and growing innovative businesses.
Peter Scholtes 18-06-19, Source: ED

The bank intends to provide both regular banking loans and risk-bearing capital. Even in the case of regular loans, it involves additional funds on top of the existing credit provision to businesses in the region. The total amount of 1 billion euros will be available for the next three years.
Rabobank wants to become the financial partner for Brainport, as announced earlier by director Marc Cootjans of the regional bank. "With these ambitions, we are taking a risk. The bank will act as a co-entrepreneur in this region," he emphasized.
A problem
For many young, innovative companies, finding sufficient financing is a problem. Rabobank is launching two investment funds for starting and growing companies.
In addition, the bank wants to set up another fund together with a number of partners from the region. This Brainport Venture Fund should contain 200 million euros in capital. Rabobank is willing to make 50 million euros available for this purpose. This fund is intended for risk capital in companies that need capital for further growth.
According to Cootjans, the level of ambition in this region is unprecedented for Rabobank. CEO Wiebe Draijer was present in Eindhoven on Monday during the announcement of the plans.
Fifty to one hundred companies
The Rabobank Brainport Startup Fund, filled with 25 million euros, could help fifty to a hundred companies, according to the bank. The Rabobank Brainport Scaleup Fund will initially have a size of 75 million euros. As it concerns starting companies in a growth phase in this category, larger amounts will be needed per company. Dozens of companies could apply to this fund. If successful, the bank aims to expand the size of both investment funds.
The bank wants to make hundreds of millions in additional banking loans available - albeit at the normal interest rates - for financing other regional companies. The bank aims to support developments in the areas of innovation, sustainability, healthcare, and technology in the agricultural and food sectors.
Underneath the investment plan lies the 'Banking for Brainport' program that the bank has developed. Rabobank wants to contribute significantly to sustainable growth and a 'vital living environment' in this region, in line with its global mission. "Now is the time to invest in this region," says Gerard Zwartkruis, director of business at the regional bank.
Lightyear
Rabobank has recently been involved as a financier in fast-growing young companies in the region such as Lightyear in Helmond (solar-powered cars), Additive Industries in Eindhoven (3D metal printers), and Heliox in Best (charging systems for electric buses).

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