NVP: NII as a catalyst rather than a competitor
This column was originally written in Dutch. This is an English translation.
By Juul Vaandrager, Deputy Director of the Dutch Association of Private Equity Firms (NVP)
In recent months, the discussion about a National Investment Institution (NII) has gained momentum. Since the letter from Kremers (March 2025), there has been broad political support for this.
A newly established public investment institution would strengthen the Netherlands' competitiveness, close the gap in the financing market and act as a counterpart to the EIB.
I welcome these ambitions. But the question is not only whether we should have a fully-fledged NII. It is mainly about howwe do it.
Supplement, don't replace
At the NVP, we see every day how powerful our investment climate is. Private funds invest in hundreds of innovative companies, provide intensive support to entrepreneurs and play a crucial role in growth, social transitions and employment.
An NII can strengthen that power, as long as it operates in a complementary manner. Not by competing with investors, but by sharing risks and helping to solve market failures, for example in deep tech or climate innovation, where the payback period is long and the risks are high.
The discussion is broader, but my focus is on venture capital
The current political discussion about an NII is about much more than just venture capital. There is talk of investments in infrastructure, housing, energy supply and defence: themes that each require their own instruments (e.g. debt financing, venture capital, subsidies).
However, I am focusing on one part of that playing field: the market for venture capital for start-ups and scale-ups. That is where the expertise of venture capital funds lies and where an NII can play a major role. It is important that the policy keeps this demarcation clear, so that the discussion remains clear and public funds can be used in a targeted manner.
Dialogue with the market is crucial
What I see in many policy discussions is that the voice of the market, investors and entrepreneurs is still not being taken into account in the design phase. Yet that is precisely where the difference is made.
The creation and implementation of an NII requires a structural dialogue between public and private parties. Only by working together can we set the right priorities, assess risks properly and deploy instruments effectively. In countries such as France and Denmark, this cooperation is firmly anchored by involving private parties from the policy-making stage onwards, rather than only at the implementation stage.
What is needed for success
An effective NII must be based on a number of fundamental principles:
- Use what is already there: The Netherlands already has strong institutions such as Invest-NL, RVO and the ROMs. Join forces and do not build a new organisation.
- Think long term: Continuity and predictability are crucial. Consistent policy must outweigh short-term political ambitions.
- Work professionally: Keep your distance from politics, with clear goals, a business-like management and a “revolving” character.
- Be complementary to the market: Use leverage to stimulate private investment, but do not take the lead and thus prevent displacement.
- Measure what matters: Measuring results keeps everyone focused and offers the opportunity to continuously improve.
Finally: building impact together
The NVP sees an NII as an opportunity to strengthen our investment climate, provided that the market is involved from the outset. A well-designed NII can improve access to capital, accelerate innovation and strengthen the Netherlands' position in Europe. But this will only succeed if public and private parties work together: based on trust, dialogue and shared ambition.