History
Twinning was established in 1998 as an initiative from Hans Wijers, a former Minister of Economic Affairs (1994-1998), and Roel Pieper, who can lay claim to a long career in the ICT sector with companies such as Software AG, Tandem, Compaq and Philips. Wijers and Pieper identified that an unfavourable economic climate existed in the Netherlands for start-up ICT entrepreneurs. The capital market, made up of banks and holding companies, was very difficult for start-ups to access; office space could only be obtained if a contract spanning several years was signed and large companies (accountants, law offices etc) left the start-ups in the cold.

Twinning was subsequently given the task of improving the unfavourable economic climate and of stimulating ICT entrepreneurship. As the first incubator in the Netherlands, Twinning offered selected start-up businesses not only venture capital, but also office space and access to the Twinning network, which incorporates experienced entrepreneurs who give advice and assistance towards the realisation of growth.

Since its establishment, Twinning has invested in almost 60 ICT businesses, 35 of which are still active and are working on their futures with Twinning support. Most of these enterprises have already benefited from one or more injections of financing and a few of them are recording figures in the black. The Twinning start-ups offer employment to several hundred employees.

Twinning has fulfilled an important pioneering role in the provision of risk capital to young ICT businesses and has amply satisfied its initial objectives.

Mission
Twinning stimulates ICT entrepreneurship in the Netherlands by providing risk capital and placing its network at the disposal of start-up ventures, but the entrepreneur remains the pioneer and Twinning's objective is to earn a yield on invested funds.

Focus
Twinning provides venture capital to early-stage ICT businesses established in the Netherlands. Several terms from the above sentence are explained below:

• “Early-stage”
This term refers to companies said to be in the development phase of their product and/or are embarking on the commercialisation of their product. As a rule, these are companies that are younger than three years and start-ups are emphatically included under the term “early-stage". We provide risk capital for product development, expansion of the company and its first steps into the market.

• ICT
Twinning invests exclusively in ICT businesses, but the ICT focus is broadly interpreted as having a preference for enterprises that fit inside one of the six focus areas, a description of which can be found under Clusters.

In general, it can be stated that Twinning focuses on product businesses, meaning companies which will develop their own software/hardware or technology. Service organisations, such as ICT attachments, IT consultancy companies etc, do not match our focus, nor do trade companies, such as businesses involved in hardware sales. (See also Business Plan).

• The Netherlands
We invest exclusively in enterprises that originated in the Netherlands and are also established in the Netherlands. This means we do not invest in daughter companies of foreign mothers.

Financing
If the investment team of Twinning decides to invest in your business, a participation agreement will be drawn up. In the following section you will find further explanations in regard to the manner of financing and the maximal amounts that will be offered:

• Venture capital
Twinning provides venture capital. This implies that in exchange for the supply of capital, a certain percentage of a company's share capital will be offered. The size of this percentage is dependent on a valuation based on present assets and business-economic results, our expectation of the potential of the participation and, naturally, the negotiations with the entrepreneur/s.

• Funds
If Twinning joins a business, it will initially involve a maximum sum of up to EUR 250,000 and one or more co-investors. Thus, we will never join a business as the only supplier of capital, but always in combination with other investors. This does not mean that the entrepreneurs will be the co-investors, but will be, for example, informal investors and/or other holding companies. Co-investors will be expected to co-finance a substantial part of the deal, meaning that the combined amount of cash from co-investors will be equal to the amount supplied by Twinning.

After a first round of financing, a decision could be made to engage in follow-up financing amounting to, in principle, a maximum of EUR 1 million. This financing will also involve other investors (not the entrepreneurs).

Network
Twinning companies can make use of the Twinning network, which consists of experienced entrepreneurs and managers who give assistance and advice. They can also function as “door-openers” to possible clients and/or suppliers.

Organisation
Board of directors: Mr E.J. de Regt (CEO), Ir. L.W. Wildervanck (business development)

C. van Driel RA, Sr Investment Manager

Drs. B.T.G. Heemskerk, Investment Manager

Ms C. Wiersma, Office Management
M.P. Engel, System Manager

Board of Commissioners:
Ir L.J. Van Driel (vz), Ir M.C. Westermann, Dr. Ir. H.P. M. Kivits, Ir. T.E.R. Slot

Memberships
NVP (Dutch Association of Holding Companies)
EVCA (European Venture Capitalist Association)