Universities

Science Parks

Incubators

Venture Capital

Financial Incentives

R&D Grants

Export Assistance

Intellectual Property

Business Federation
of Wallonia (UWE)

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 to expanding companies.

Public Funds

At the Local Level

Local investment companies (Invest Borinage-Centre, Namurinvest, Sambrinvest, Meusinvest, Hoccinvest, Nivelinvest, Investsud, Ostbelgieninvest ) are specifically geared towards the SMEs (small and medium size enterprises), in their respective regions and offer equity funding, subordinated loans, etc.

At the Regional Level (Wallonia)

Wallonia offers additional funding mechanisms for new companies. The Regional Investment Company of Wallonia (SRIW) and the Wallonian SME 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 newer innovative sectors. Special venture capital funds have been created in 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 mechanism (bourse de préactivité) to enable entrepreneurs seeking to develop projects in Wallonia to finance their initial project setup 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 that supports and promotes the entrepreneurial spirit by offering loans with low fixed interest rates to the self-employed and SMEs. 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 combat 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 vast and are a dominant player in the venture capital market. There are more than 121 branches of international banks in Belgium, including: HSBC, ABN Amro, Bank of America, BNP Paribas, Citibank, Commerzbank, Deutsche Bank, ING, JP Morgan Chase, State Street Bank, the Bank of New York, UBS, Sumitomo Mitsui and many more. Because of the volume of international business carried out in Belgium, more than half of all banking transactions are international financial transactions.

Venture Capital

Belgium has a mature 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-quoted companies). The new law aims at encouraging private investors to invest in non-quoted venture capital, while benefiting from a tax-neutral status. Investor may be individuals and/or legal entities established in Belgium or abroad.

Business Angels

Through a range of informal contacts, business angels provide start-ups with risk capital and coaching. In 2000 their networks united in the Belgian Association of Business Angels Networks (BeBAN).

Business Angels Matching Services (BAMS) Angel Funds is an investment structure that includes 25 business angels who are willing to unite their strengths to increase their financial, due diligence and operational means. They provide entrepreneurs a way to create attractive business plans and include examples of different Shareholder plans. BAMS is a member of the European Business Angel Network (eban)