‘We invest in
scalable companies
that are ready to
grow further’

Bert Oosterloo is the chairman of the Investment Committee of the Dutch Sport Tech Fund. In this article, he talks about the team that evaluates new investments and the fund’s investment strategy. How does Dutch Sport Tech Fund ensure it achieves an attractive return for its participants?

“We apply a clear structure to every investment. This is important, because we receive quite a lot of proposals from startups and scale-ups seeking investment in their company. The first check is carried out by the management team, the board of Dutch Sport Tech Fund. After that, these companies are reviewed by the Innovation Committee, led by Marianne Timmer, who verify whether the company is truly innovative.”

After a check by the management team and the Innovation Committee, the startups and scale-ups are presented to the Investment Committee. “We conduct a financial, fiscal, and legal review of the company, the so-called due diligence. We also have conversations with the founders of the technology companies, because we find it necessary to look the entrepreneurs in the eye and hear their story. Finally, we issue a written recommendation, which sometimes includes a number of conditions. If these conditions are not met, then we do not invest in the company.”

“Our team consists of various specialists. I myself have worked as an accountant at PwC since 1985 and was a partner at the firm from 1996 until September 1, 2020. As a result, I have broad experience with many different national and international companies. Pieter Schoen is a renowned Dutch captain of industry, serial investor, and co-founder of energy supplier NLE. Corné Aantjes is a professional investor in tech & data companies, with expertise in sustainability growth and international expansion.”

“Because everyone has their own area of expertise, the team is highly complementary. Start-ups and scale-ups seeking investment share their data with us via a so-called data room. In it, we find all the legal, tax, and financial information. Everyone studies this information carefully, but we let the judgment of the relevant expert carry the most weight.” What does the Investment Committee look at?

“We look at a variety of factors. We advise on the legal, tax, and financial organization of the company, but also on whether we believe the company will be successful. Do we understand the business case, and do we have confidence in the strategy of this tech company? A proven track record, customers, revenue, traction, brand awareness, and market share are reasons to partner with a company. We are looking for scale-ups that can achieve an annual return of 15 percent. Also important: does the entrepreneur have skin in the game? That is to say: do the founders themselves also invest time and money in the company?

“The company’s tax affairs are also important. Are VAT and corporate tax requirements being met? Are all legal aspects of the company in order? How is the governance structured? Is there a Supervisory Board and Advisory Board? How are the ownership relations organized? Our review always includes financial, tax, and legal components. Fortunately, we are assisted by experts and accountants who support us with their knowledge and expertise.”

“That varies per participation, although there are some generalities to outline. We closely monitor the management reports so that we can see how much money is being invested before any revenue is generated. This way, we always have insight into the company’s cash position, revenue growth, and burn rate (spending pattern). We also always check the legal aspects of a participation, how the shareholders are organized, and whether we invest with resources or also with our network.”

“In the case of Circl, however, there were specific requirements. Our investment depended on the license the company would receive, which would allow it to operate in the social betting market in the United Kingdom. If there was no license, there would be no investment, since this license would quadruple the company’s value.” 

“In the past, we saw some reluctance among entrepreneurs to raise growth capital. In today’s world, speed is often the key to success, and for that, money is needed. The market for sports technology is growing rapidly, which enables us to achieve attractive returns for our participants. We see a strong need among technology companies to scale up. They come to us for investment, and a large group of investors want to participate in our investment fund. That indicates we are on the right track.”

“We are constantly looking for companies that are ready to scale internationally. What works in the Netherlands may also work in France. What works in football might also work in tennis. With that insight in mind, an expert team, sufficient traction, and a broad network of experts, we are ready for the future. We have everything it takes to help innovative, scalable companies grow even faster.”