Venture Capital and Business Financing
Wallonia offers a wide range of public and private investment and financing options for businesses at all stages, from emerging start-ups to expanding established businesses.
Public Funds
At the Local Level (City)
Local investment companies (including Invest Borinage-Centre, Namurinvest, Sambrinvest, Meusinvest, Hoccinvest, Nivelinvest, Investsud, Ostbelgieninvest ) work specifically with SMBs in their respective cities and offer equity funding and subordinated loans, as well as other options.
At the Regional Level (Wallonia)
Wallonia offers additional funding mechanisms for new companies. The Regional Investment Company of Wallonia (SRIW) and the Wallonia SMB Finance and Guarantee Company (SOWALFIN) finance the creation, re-organization or expansion of private businesses. Regional investment companies act either by purchasing shares, by increasing the capital of the business, by subscribing to a bond issue, or by granting subordinated or convertible loans. Growth and venture capital are provided to established companies as well as start-ups in innovative sectors. Special venture capital funds have been created in the area of biotech and sustainable energy.
Regional guarantee funds provide prospective entrepreneurs with the necessary guarantees for a commercial loan, or guarantee the investment by venture capital funds in small innovative companies. Financial assistance helps cover the cost of expert legal or financial advice (consultancy aid).
In 2001, the Wallonia Region set up a special enterprise feasibility grant (bourse de préactivité) to help entrepreneurs seeking to develop projects in Wallonia to finance their initial project start-up costs.
At the Federal Level (Belgium)
The Fonds de Capital d'Amorçage (FCA) or seed capital fund specializes in the financing of companies at the start-up or expansion stage. Finance (up to a maximum of 125,000 euros) is provided in three main forms:
- Majority or temporary equity stakes (risk capital or venture capital)
- Unsecured loans at preferential rates
- Subordinated loans
The Participation Fund is a public federal financial institution which supports and promotes the entrepreneurial spirit by offering loans with low fixed interest rates to the self-employed and SMBs. Its objectives are:
- To facilitate access to bank loans in the case of self-employed entrepreneurs, professionals and small companies at the start-up, expansion or conversion stages,
- To fight unemployment by granting loans to individuals who are seeking work and want to set up their own business.
Private Funds
Banking System
The Belgian banking system, one of the most efficient in the world, provides a series of global and tailored solutions to personal and business-related issues. Credit offers by Belgian banks are quite broad and remain a dominant player in the venture capital market. There are more than 121 branches of international banks in Belgium, including Bank of America, Citibank, JP Morgan Chase, the Bank of New York and many more. Due to the volume of international business carried out in Belgium, more than half of all daily banking transactions are international financial transactions.
Venture Capital
Belgium has an experienced and vigorous venture capital industry. The Belgian Venturing Association (BVA) represents the Belgian venture capital and private equity sector.
Recent federal legislation introduced PRIVAK (Private Equity Investment Fund - Investment in non-traded companies). The new law encourages private investors to invest in non-traded venture capital, while benefiting from a tax-free status. Investor may be individuals and/or legal entities established in Belgium or abroad.
Business Angels
Through informal contacts, business angels provide start-ups with risk capital and coaching. In 2000 their networks united to form the Belgian Association of Business Angels Networks (BeBAN).
Be Angels is an investment structure which includes 25 business angels who have united to increase their financial, due diligence and operational capabilities. They help entrepreneurs create attractive business plans and include examples of different shareholder plans. Be Angels is a member of the European Business Angel Network (EBAN)
