Securing funding for early-stage innovation is difficult enough when you’re building something safe. But when you’re developing a new therapy, designing unproven hardware, or trying to push a tech stack beyond what’s currently possible, the usual financing routes might be limited. The Dutch Innovatiekrediet was built specifically for that in-between zone, in which your business idea is too risky for banks and too early for commercial investors but too important not to pursue. Below, we’ll explore how the innovation credit scheme works in the Netherlands, who it’s for, and how to use it effectively.

What’s in this article?

• What is the Innovatiekrediet in the Netherlands?
  
• Who is eligible for the innovation credit?
  
• How do you apply for the innovation credit in the Netherlands?
  
• What are the terms and interest rates for the innovation credit?
  
• Why should startups use the Innovatiekrediet to fund innovation?
  
• How Stripe Capital can help
  

What is the Innovatiekrediet in the Netherlands?

The Innovatiekrediet is a government-backed loan for startups in the Netherlands that are building something new with real technical risk, such as biotech therapies, novel hardware, or anything that still needs serious development before it’s market-ready. It’s designed for projects that have a strong commercial upside if they work, but aren’t quite attractive to traditional investors yet because their outcomes aren’t guaranteed.

The Dutch government—through the Netherlands Enterprise Agency, or RVO—awards the loan, and if approved, it covers up to 50% of your costs. You don’t start repaying until the project is complete, and typically only if it succeeds. If the technology doesn’t work out for legitimate reasons, the debt can be forgiven. It’s risk-sharing capital for high-potential innovation, with repayment terms that are flexible and that depend on the project’s outcome.

Who is eligible for the innovation credit?

The RVO wants to back companies pursuing projects with high technical risk and high potential reward—particularly companies that have done enough work to justify that risk. That’s the main benchmark the agency uses when evaluating qualifications, but there are other eligibility criteria as well. Let’s take a closer look at the conditions your business needs to meet to be eligible for the innovation credit.

You’re registered in the Netherlands

Your company needs to be established in the Netherlands, with most of the project work happening locally. You don’t need to be Dutch-owned, but the economic impact should be felt in the country.

You’re developing something technically risky

You need to show that your product carries substantial clinical or technical risks but no financial or commercial risks. This applies to hardware, software, life sciences, and deep tech.

Your innovation is new to the Dutch market

The project can’t just replicate something that already exists in the Netherlands. You’ll need to explain how it’s different and why it matters. If you’re working on a software or AI project, you’ll need to show that the tech is genuinely new and difficult to build.

Your idea has strong commercial potential

In order to be eligible, you’ll need to show there’s a real market for your product after development. The RVO expects to see a clear path between your innovation and a product, process, or service that could reach customers and contribute to the Dutch economy within five years.

You’ve proven the basic concept

You need to provide proof that your core idea is feasible based on previous research. Your idea should be in the early stages but real.

Your project is focused and standalone

You’re applying for one specific development track, not a bundle of unrelated initiatives. The project should have a clear end goal: typically a market-ready product or validated clinical application.

Your project budget is at least €150,000

There’s no upper limit, but the RVO funds up to €10 million for technical projects and €5 million for clinical ones. The rest of your funding must come from your own capital, investors, or other sources.

You can prove the rest of your funding is lined up

The RVO needs to see that your project is fully financed beyond their contribution. That means providing signed term sheets, investor letters, and bank statements.

You’ve built in a buffer

The RVO expects you to show how you’ll handle delays or setbacks. If your plan only works when everything goes right, it won’t be approved.

How do you apply for the innovation credit in the Netherlands?

Applying for the Innovatiekrediet takes real preparation. It’s a detailed pitch for why the Dutch government should cofinance your risky research and development.

Just like you would for a lead investor, make sure to:

• Use real numbers
  
• Be specific about what the product does and how it’ll make money
  
• Prove the market exists
  
• Show that your tech is difficult to build and you have a credible plan to get there
  

Here’s a closer look at the application process.

Quick Scan

Before anything else, fill out the nonbinding Quick Scan form on the RVO site by clicking the “Do the Quick Scan” button. It’s short, and it gets you on the government’s radar. Within four business days, someone from the RVO will contact you to talk through your idea. If your project isn’t a fit, they’ll tell you before you spend weeks writing a full application.

Application

You’ll submit the application through the Mijn RVO portal. The form itself must be completed in Dutch, but your supporting documents (e.g., business plan, tech plan) can be in English. You’ll need an eHerkenning login (level 2+), which is a secure digital ID for Dutch businesses. For the application itself, you’ll need the following components.

Business plan

What’s the product? Who needs it? What’s the market size? Include actual numbers and supporting evidence. Don’t forget about commercialization: the RVO expects a path to revenue within five years.

Beyond technical development, plan for:

• User testing
  
• Pilot customers
  
• Letters of intent
  
• Distribution partnerships
  

Project plan

Where’s the technology now, and what are the big challenges you need to solve? Assume you’ll hit delays, timeline changes, or failed trials, and build in budget buffers and options to pivot within the scope. Be honest about the risks and how you’ll deal with them. Break the project into milestones.

Financing plan

The RVO covers up to 50% of eligible expenses, so the rest needs to come from you, investors, or other sources. Include signed agreements, investor letters, or bank statements. You also need to show you can absorb delays, cost overruns, or other factors that might affect the budget.

The goal here is to demonstrate that other funders are on board but you need the RVO to help mitigate the risk of the bet.

Supporting documents

You’ll also need to include your Chamber of Commerce registration, Articles of Association, financial statements, director IDs, SME assessment, and other documents. If your company is part of a group or has subsidiaries, you’ll need to explain the structure.

The application is open year-round, but the sooner your application is complete, the sooner it will get reviewed.

Intake meeting and review

If your application passes the initial check, you’ll be invited to an intake meeting. This is a chance to walk through your plan, clarify anything, and ask questions. After that, your application will go to the RVO’s internal experts and an external advisory committee. They’ll examine the tech, the market case, and the financials before making a final decision. Expect 8–16 weeks between submission and approval.

What are the terms and interest rates for the innovation credit?

The Innovatiekrediet is a loan, but it doesn’t behave like one from a bank. The repayment terms are built around the idea that your project is high-risk, long-term, and not yet profitable. Here’s how the terms actually work.

Loan amounts

You can borrow up to €10 million for technical projects and up to €5 million for clinical ones. The RVO will fund up to 50% of eligible project costs for small and medium-sized businesses, while large companies are capped at 40% funding. Your Innovatiekrediet loan might also be lower if you’ve received other public funding for the same project.

There’s no equity or revenue share. The RVO won’t take a stake in your company, but they do get collateral. You’ll sign a pledge giving the RVO first claim on project-related assets—such as IP and prototypes—until the credit is fully repaid or forgiven.

Interest and mark-up

The loan accrues 3% annual compound interest starting when you receive it from the RVO.

Mark-up

Instead of layering on more interest, the RVO charges a flat markup at the end of the project: 15% for technical projects and 25% for clinical projects. That’s added to your principal, but interest doesn’t accrue on the markup.

Repayment

There are no repayments during development. When the project wraps, you’ll submit a final report with audited financials. If the project succeeded, the RVO will set a repayment schedule. No dividends or shareholder loan repayments are allowed until the RVO’s credit is repaid. This keeps funds inside the company until the debt is cleared.

If your project doesn’t deliver because the tech didn’t pan out, the trial failed, or the product just couldn’t be built, the RVO can waive repayment partially or entirely. The whole premise of the Innovatiekrediet is that not every high-risk project will succeed, and that’s accounted for in the structure.

Why should startups use the Innovatiekrediet to fund innovation?

The Innovatiekrediet does something rare: it backs risky ideas with meaningful capital without taking your equity, forcing early repayment, or punishing you if it doesn’t work. Here’s why it stands out.

It’s non-dilutive capital when you need it most

Raising equity at a high-risk, prerevenue stage is difficult. The Innovatiekrediet offers serious funding without touching your cap table. That means you keep control, delay dilution, and raise on better terms later, once you’ve hit technical milestones.

It’s built for the hard part

Many startups stall between proof of concept and market readiness. Private investors and banks can get skittish at this stage. The Innovatiekrediet is specifically designed to fund the middle ground when your idea is real but not yet commercially viable.

It’s also designed to crowd in other capital. RVO funding often helps unlock additional investment by lowering the project’s perceived risk.

It shares the risk

If the project fails for legitimate technical reasons, you don’t repay the loan, which is a term you won’t typically get from banks. That gives you the latitude to take an ambitious swing without the threat of financial ruin.

The cost of capital is low

The credit offers a fixed success fee, 3% interest, and no compounding on the mark-up or payments during development. That’s cheap capital, especially compared to early equity or venture debt.

It provides validation

Getting approved means your tech, business case, and team have held up under expert scrutiny. Other investors might take you more seriously once they know you’ve been vetted by the RVO. Use that new credibility to your advantage; just make sure any new funders understand the terms—particularly that the RVO has the first claim on assets and that you can’t pay out equity holders until the credit’s repaid.

It fits ambitious, technically complex startups

This credit is for companies building genuinely hard things in areas such as deep tech, life sciences, climate tech, or infrastructure. If that describes you, you’re the profile this program was designed to support.

If you’re building something new, complex, and commercially promising but too risky for typical funding streams, the Innovatiekrediet is a founder-friendly financing option.

How Stripe Capital can help

While a great option for some, the Dutch innovation credit isn’t the right fit for every business. Stripe Capital offers revenue-based financing solutions to help your business access the funds it needs to grow.

Capital can help you:

• Access growth capital faster: Get approved for a loan or merchant cash advance in minutes—without the lengthy application process and collateral requirements of traditional bank loans.

• Align financing with your revenue: Capital’s revenue-based structure means you pay a fixed percentage of your daily sales, so payments scale with your business performance. If the amount that you pay through sales doesn’t meet the minimum due each payment period, Capital will automatically debit the remaining amount from your bank account at the end of the period.

• Expand with confidence: Fund growth initiatives such as marketing campaigns, new hires, inventory expansion, and more—without diluting your equity or personal assets.

• Use Stripe’s expertise: Capital provides custom financing solutions informed by Stripe’s deep expertise and payments data.

Learn more about how Stripe Capital can fuel your business growth, or get started today.