In Q3 2024, around €424M was invested in Dutch startups, nearly the same as in Q3 2023.
Despite a slight decrease from Q2 2024 (€427M), the total investment for 2024 exceeds €1.9B, surpassing the total for 2023, according to the Quarterly Startup Report.
Enschede-based Golden Egg Check (GEC), a Dutch analyst startup that tracks startups, scale-ups, and VC deals, has published — Quarterly Startup Report.
The report was published in collaboration with Dealroom.co, Golden Egg Check, KPMG, the Regional Development Companies (ROMs), the Dutch Association of Private Equity Companies (NVP), the Dutch Startup Association (dSa), and Techleap.
Decline in number of deals
According to the report, the number of deals in Q3 decreased by 8 per cent compared to the same quarter in 2023.
In particular, there were fewer early-stage deals (Seed: €1-4M), which accounted for 40 per cent of total deals in this quarter.
“The lack of investments in the very early phase is worrying,” says Lucien Burm of the Dutch Startup Association. “The cause must be sought in a decreasing number of angel investments. We have been advocating for an incentive scheme for this for years. Such a scheme is already being applied with great success in countries around us. It is time for the Dutch government to take action on this now so that in a few years there will still be enough tech companies that we need for our prosperity, jobs, and the standard of living that we are used to.”
The number of Series B+ investments (€15+ million) also decreased: there were only 6 of these large investments in Q3, compared to 14 in Q1 and 9 in Q2 2024.
Despite this, there was still some significant investment, with Nearfield Instruments raising a €135M round.
Other major deals in the third quarter included Payt (€55M), Avidicure (€37M), and Battolyser Systems (€30M).
Focus on Cleantech and Deeptech, limited AI
In the third quarter, there were significant investments in cleantech and high-tech companies. Startups focusing on climate innovations — Battolyser Systems, Quatt, and Carbyon, received substantial capital.
In addition to Nearfield Instruments, other companies in the high-tech and deep-tech sector, such as Morphotonics, also raised larger amounts, which underlines the development in these sectors.
The Netherlands has fewer AI-focused companies compared to the UK and France.
For instance, AxeleraAI from the Netherlands raised $68M in the second quarter of this year, while the UK and France have seen more and larger funding rounds in the past year.
The 10 biggest deals of the past quarter
- Nearfield Instruments – €135M
- Payt – €55M
- Avidicure – €37M
- Battolyser Systems – €30M
- Quatt – €25M
- Carbyon – €15.3M
- Medal.tv – $13M
- CarePay – €10M
- Morphotonics – $10+ M
- Scaler – $10M
According to the report, Dutch startups have received over €2B in investments so far in 2024, with a decrease in the number of deals compared to 2023.
Notable is the sharp decline in the number of deals so far compared to 2023, 258 vs 304 (through Q3). Although it fluctuates strongly over the years, the past quarter had the lowest number of deals since Q1 2021.
The early-stage investments seem to be lagging, which could impact the overall number of investments in the long term, says the report.
“The third quarter is always a bit quieter due to the summer, but we have to be careful that the decrease in the number of deals does not become structural,” says Thomas Mensink, CEO of Golden Egg Check. “For the third quarter in a row, there is a downward trend. The amount invested is also in the top three of the lowest per quarter in the past four years. Although we also see this development in countries around us, I had hoped that the way up had been found again by now.”
“The trend in The Hague is to cut back on the future,” says Myrthe Hooijman, director of ecosystem change and governmental affairs at Techleap. “We must be prepared to invest in a strong Dutch tech sector. Blended finance is a strategic move to stimulate investments, for example in deeptech or AI companies, because it becomes attractive for pension funds, among others, to participate. These types of companies are essential for the future economy of the Netherlands.”
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