Everything you need to know about the Funding Tool

The idea for the tool came about after Nico and Albert-Jan saw two problems with researchers who wanted to raise funding for their spin-off. “The first was that the terminology of the financial ecosystem did not match the experience of starting spin-off entrepreneurs,” says Nico. He is referring to concepts such as pre-seed, series A and angel investors. “If you then delve into that as a researcher, you run into the second problem: that you can no longer see the forest for the trees. Because what is the best financing for you? We were asked that question very often, but there is no clear answer to that.”

Friends, family and fools

Albert-Jan also saw those problems. “In America they say that you should first go to your ‘friends, family, and fools’ for money,” he explains. “If you do that in the Netherlands, or you go straight to a Venture Capitalist (VC) for three million, then you are completely missing the mark. In the Netherlands we have government instruments for that early phase.” And the options for that are legion. Nico: “At the moment we have around 150 funding options in the tool. That is a bizarre financing landscape. And then it also depends on the sector you operate in. As an enterprising researcher you can quickly wonder where on earth you should start.”

No competition

That is where the funding tool comes in. Created by the TTTs, which is also part of the financing landscape. Logical, according to Nico. “With our pillar 1 and pillar 2 we have two places in the financing chain. With pillar 1 we are one of the earliest drivers of valorisation in the academic environment. Where research subsidies stop, we take over and offer the first step in entrepreneurship. From there it is logical that we provide tools for the further financing journey.” Albert-Jan adds: “Collaboration is in TTT’s DNA to bring technology to the market. To do this, you should not see your own investment instrument as a competitor of other instruments. You need a great many instruments to ultimately bring technologies to the market. Too many spin-offs are currently getting lost in the financing process, which means that we as a society are missing opportunities to utilise these technologies.”

Sharper focus

A clear tool was what was still missing. Nico: “If we can ensure that people tell their story at the right stage, in the right place and in the right way, then that is worth its weight in gold. You do not have to have your entire route mapped out yet, but if you know your stopovers, you will already have come a long way.” Albert-Jan agrees. “When you can place yourself on that timeline, it becomes easier to determine what you need after your current round of financing. By looking at financing in terms of different rounds, you know what comes after one round and what you need to focus on now in terms of business development. So you can better determine what activities you can perform and what resources are available to you. This way you stay better focused and can put your energy into securing the right financing options.”

Improving the system

With the tool, you can easily map out your route. And you don’t need a ‘funding dictionary’ for that. “You get an explanation of the terminology we use,” Nico explains. “You can also indicate which sector you are in and how much money you need approximately. All kinds of options then roll out, including a short description of what the financing option entails and where you can apply for it.” Once you have found suitable financing, it is advisable to return to the tool, says Albert-Jan. “Not only to determine your next point on the horizon, but also to review the instrument used. A lot changes and we don’t see everything. Do you notice that a scheme has changed, for example in amount? Then let us know. That helps others. Even if it was a great scheme, or if you had to wait a long time for an award. That way we ultimately improve the entire system.”

You can find the funding tool on our website.