NETHERLANDS Trends and Developments Contributed by: Marc Habermehl, Roderik Vrolijk and Max de Heer, Stibbe
ELTIF 2.0 The recent major update to the EU’s regulation for long-term investment funds (ELTIFs) also impacts EU VC funds. ELTIF 2.0, which came into force on 10 January 2024, provides alterna - tive investment institutions – including VC funds – with access to new fundraising avenues, great - er investment flexibility and a broader investor base, including retail investors across the EU. By extending the scope of eligible investments and taking away certain regulatory constraints, ELTIF 2.0 facilitates a more efficient flow of capital into the VC system. This influx of capi - tal can stimulate innovation, support the growth of start-ups and scale-ups, and enhance the competitiveness of the European economy on a global scale. The ability for VC funds to form fund-of-funds structures and improved cross- border marketing rules further amplifies these opportunities, fostering a more integrated and robust investment environment.
The Netherlands as Fintech Hub The Netherlands has the EU’s second-largest fin - tech industry, and is third in terms of VC funding in the EU. Banking and other financial services are shifting faster than ever, from brick-and-mor - tar buildings to online, AI and blockchain. Since the COVID-19 pandemic, fintechs have been on a steep upward trajectory. The Netherlands is recognised as a global front-runner in fintech, in particular payments (with companies such as Adyen, Bird, Botonic, Bunq and Sentilia), and VC funds investing in the Netherlands continue to be active in the fintech sector, following earlier successful capital rounds by companies such as Mollie, Mambu, Finom, PayU and BUX.
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