September 27th 2017 – The Scale Up Event #2
With a record attendance of 175 participants at our Second Scale Up Event in Amsterdam, Constantijn van Oranje and HPE Growth Capital have put Scale Ups on the agenda in Holland.
Not all Start Ups make it big, but the ones that do greatly impact society by means of innovative technology, services and increased employment. Over the last 10 years the Netherlands has produced an impressive line-up of Scale Ups, like Booking.com, Tom-Tom, Adyen, Sunweb, SuitSupply, and Tiqets to name a few, increasing value from 50 Million to 50 Billion.
The next generation of Scale Ups will need Capital, Talent and Ambition to expand and internationalize. As such, the key objective of the event was to stir collaboration between Dutch and international Pension Funds, Family offices, Growth Investors, Economic Affairs and Scale Ups. The gathering discussed in depth how the investment and business community can ensure the future success of Scale Ups. Several prominent Dutch and International speakers shared their stories and showed that Scale Ups are indeed an attractive asset class worth investing in. With speakers like Corien Wortmann, Chairman of ABP (the largest pension fund in Holland), Christine Panier (Head of Lower Mid-Market at EIF) and Frank Roeters van Lennep (CIO of PGGM), there was over a Trillion Euros of AUM in the room. Convincing data points were presented on the impact of Scale Ups. First, the research of Professor Justin Jansen from the Rotterdam School of Management has shown that there are currently 2,600 Scale Ups in Holland. Next, research of John Renkema from APG has shown that returns generated by Scale Ups as an asset class are nearing the historical returns of Buy Outs at more than 11%. Third, research of Eva de Mol from HPE Growth Capital has shown that outperformance of Scale Up returns is dependent on team composition and diversity.
Furthermore, a strong panel of Scale Up founders (Janneke Niessen – Improve Digital, Luuc Elzinga – Tiqets, Corinne Vigreux – TomTom, Joris Beckers – Picnic) shared their expertise and experience on the road to Scale Up success.
A tentative conclusion from this second Scale Up event in Holland is that this new asset class is sizeable (2600 companies), generates interesting returns (11+ percent) and can double from a mere 6 percent asset allocation, de-emphasizing the large Buy-Out allocation.
May 17 2017 – The Scale Up Event #1
On Wednesday May 17, HPE, in collaboration with the Association for Corporate Growth (ACG) Holland and Prins Constantijn van Oranje-Nassau, hosted its first Scale Up event with over 120 attendees.
The key objective of the session was to demonstrate the attractiveness of Scale Ups in Holland as an asset class. Evidence based facts were presented by three experts from research, private equity and pension funds community.
First Prof. Justin Jansen from the Rotterdam School of Management demonstrated the existence of 3000 serious Scale Ups in the Netherlands. Second, John Renkema, senior portfolio manager private equity at APG elaborated on his data that shows that growth equity provides significant returns. And thirdly, Dr. Eva de Mol presented her research from Berkeley Haas Business School California to show that team composition is a crucial factor in explaining variance in venture performance outcomes.
The presentations provoked lively discussion and confirmed that there are a number of challenges that need to be addressed. These are centered not only around access to growth capital, but also ambitions of the management team, building truly scalable business models and retaining talent. This is an area close to our hearts at HPE Growth Capital and we are committed to collaborating with all involved parties to support scale ups in the Netherlands and make data-driven decisions.