Unlike other funds
Leendert comes from the banking world. He wanted to use his knowledge and experience for a social purpose and is now director of PDENH. Anthony was already involved in the establishment in 2014 and has been investment director since 2018. "We focus on North Holland companies that focus on social challenges such as the energy transition, the circular economy and sustainable mobility. We focus on companies that are not sufficiently picked up by the market, but are still impactful," says Anthony. “For example, when investors are put off by a long exit horizon, by a too early technological maturity or by an above-average deeptech content. When we see potential, we dare to take the plunge.”
Commitment as a catalyst
That commitment convinces other investors. “Especially with the initial investments,” says Leendert. ”Sometimes companies couldn't get the financing, and at other times there was no lead investor. We then took on that role. Once involved, we help the company further, so that a number of investment rounds later it reaches the point where we can pass the baton. When new investors then come in and take over, we know that we have been successful.”
The role of PDENH varies per investment. "If a lot of support is needed for a next investment round or for a transition at management level, we are intensively involved," explains Anthony out. “For example, at a smartphone manufacturer we took the lead in an investment trajectory, which resulted in a strong supervisory board. This step allowed us to be less intensively involved in the company. The company has significantly increased its turnover since PDENH joined and the company now has 120 FTEs.”
Investing with impact
The results are there. Leendert: “In eleven years, we have seen ideas grow into companies that make a serious contribution to the Dutch economy and society. That is wonderful to see.” “They are also very different successes,” adds Anthony on. ”We often also look at the social component. Thanks to the growth of a company like Fairphone, for example, poor working conditions in African mines are prevented. Sympower and Dexter, companies active in the field of grid balancing, are also good examples in which we invested at an early stage. When we entered, these companies each had less than 20 FTE. Now there are 150 to 200 FTE per company. In both cases, turnover has increased by more than twenty times. These are very measurable successes. We are extremely proud of this.”
Leendert: “Some companies are not yet making a profit. That often happens slowly and is inherent to what we do. That is part of the type of organization we are. A good example is the Deep-tech startup Thorizon, in which we consciously took the risk. We knew that this would be a long-term investment, with an extremely high risk profile. At the same time, we also saw a company that, as a fund that invests with public funds, you have to give a boost.
It has since grown into an impactful technology that is gaining recognition at European level and is consistently listed in the top 10 most promising modular nuclear energy companies.
What strikes us time and again is that our founders express their appreciation for the involvement and continuous support they experience from us during their development. And development is exactly what we want to achieve. So that is a great compliment.”
Towards the future
Currently, PDENH only invests in companies that are already in the portfolio. New companies are placed in the TF and SME Fund. Together with the existing companies, PDENH is working towards an exit, in which the market takes over. However, that does not mean that the work is done. Anthony: “Certainly not. Due to all the geopolitical developments, we are striving for more strategic autonomy in Europe and also in the Netherlands. At the same time, we see that sustainability is currently receiving less priority politically. For the companies in our portfolio, which want to achieve sustainable impact in the long term, this is therefore a challenging period.'' Leendert: ''But as an entrepreneur you have to be able to adjust. And for our investments that means: adjusting the revenue model and at the same time contributing to a better society. I think that's incredibly beautiful, so realizing impact, that's what we continue to work for with full conviction!''
