A closed-end venture capital fund can use the Seed Capital scheme.
The Seed Capital scheme is open to funds that invest in tech startups. Since 1 January 2010, the Seed Capital scheme has also been open to funds that focus on creative startups. These are starters in the areas of creative business services, media, entertainment and arts.
Conditions for a Seed fund
If you plan to invest in tech startups or creative startups, you must meet the following conditions:
- You set up a fund with at least 3 independent shareholders or partners.
- The fund must have the legal form NV, BV, CV or VOF. The fund focuses exclusively on closing the 'equity gap' for the tech startup or the creative startup. The equity gap entails a shortage of equity capital, due to encountered difficulties in raising equity.
- Investments must take place during the first 6 years of the fund.
- The fund must stop no later than 12 years after it started.
- In the fund plan, you must describe how you will guide the tech startup or creative startup.