The number of Dutch startups successfully scaling up to become scale-ups also remains low.
The decline in the number of new startups and the lack of Dutch investors in major funding rounds are troubling trends observed over the past year.
The fifth edition of the State of Dutch Tech report by Techleap also reveals that “early-stage investment remains the biggest challenge for Dutch startups.”
Based out of Amsterdam, Techleap is a non-profit organisation accelerating the growth of startups and scaleups.
Let’s take a look at the key takeaways from the report:
The Netherlands takes 4th place
Dutch tech companies raised €3.1B in venture capital over the past year, a 47 per cent increase compared to the previous year.
While startup investments in Europe as a whole showed a downward trend (-5 per cent).
This puts the Netherlands in fourth place, after the UK, Germany and France.
Notably, European investors played a more prominent role in larger funding rounds.
However, Dutch investors are holding back, contributing just 15% of venture capital raised (down from 61%).
Early-stage investments remain the biggest concern
Securing early-stage investments (up to €15M) remains one of the biggest challenges for startups, says the report.
Only 104 startups raised more than €100K, a 23 per cent decline compared to 2023, when 172 startups managed to do this.
The number of deals also decreased by 20 per cent.
Additionally, investments in AI in the Netherlands significantly lag behind those in other countries, such as Switzerland and the UK.
12% growth in Dutch scale-ups
The total number of scaleups grew by 12 per cent to 268 companies.
This brings the Dutch scaleup ratio (the percentage that grows to at least €10 million in funding) rose from 13 per cent to 21.5 per cent over the past five years.
However, the Netherlands still underperforms compared to the European average (23 per cent) and the United States (54 per cent).
Two new Dutch unicorns, Mews and DataSnipper, emerged last year.
Dutch Deep tech ecosystem
The Dutch deeptech ecosystem comprises 1,342 ventures, making up 12 per cent of the total company population.
The segment shows particular strength in early-stage ventures, with 1,223 startups representing 12 per cent of the total startup landscape.
Notably, the scaleup ratio of deeptech companies stands at 35 per cent—nearly a third above the ecosystem average.
The deeptech segment has demonstrated growth in venture capital investments from 2019 to 2024, with total funding increasing from €430M to €1126M.
Deeptech companies show progress in the Netherlands, doubling the scaleup ratio from 16 per cent in 2019 to a projected 35 per cent in 2024.
Future of Compute (Foc)
The Dutch ecosystem currently encompasses over 100 companies active in this category, 13 of which have scaled beyond a €10M VC investment.
The Netherlands ranks fourth in Europe by number of companies focussed on the “Future of Compute” and with a total VC investment of €846.1M between 2019 and 2024, trailing behind the UK and France in absolute amounts.
Between 2019 and 2024 over 80 per cent of the total VC investment in Future of Compute in the Netherlands was directed towards the semiconductor industry.
In 2024, Nearfield Instruments raised €135M in VC funding while Axelera AI raised €61.8M.
Overall, the Netherlands ranks second by per capita investment in semiconductors in Europe.
VC investment in quantum technologies in the Dutch ecosystem has seen a sharp increase going from €15M in 2023 to €40M in 2024.
Despite the increased attention for this category, the Netherlands still lags behind other European players on total VC and per capita VC raised since 2019
Talent dynamics
While the scaleups represent less than 10 per cent of the tech market in the Netherlands, but account for 15 per cent of employment in the sector.
This amounts to 55,000 jobs.
Scaling up these companies contributes significantly to the economy and job creation.
The data from Ravio for 2024 shows a 17 pe cent increase in hiring rates within tech startups and scaleups in the Netherlands compared to last year.
However, Dutch companies are still hiring at a slower pace than their European counterparts on average.
The sector has also seen progress in diversity, with a notable 22 per cent increase in startups (co-)founded by women.
However, investments in these companies have declined.
Growth in Deep tech sector
The Dutch deep tech sector, one of Techleap’s focus areas, is experiencing significant growth.
The deep tech sector accounts for 35 per cent of the ecosystem and attracted €1.1B in investments.
The sector also has a remarkably high scale-up ratio — rising from 17 per cent to 35 per cent in five years.
Techleap attributes this growth to targeted government investments in initiatives such as Quantum Delta NL, Nearfield Instruments, and Brainport Eindhoven.
Regional analysis
The Dutch tech ecosystem is for a large part concentrated in the regions of North Holland, South Holland, and Utrecht, which account for the majority of jobs and venture capital (VC) investments.
North Holland alone drives 40 per cent of jobs and over 60 per cent of VC funding, highlighting stark regional differences.
Drenthe: In Drenthe, innovative SMEs and the manufacturing industry have long played a vital role in the region’s economy. Recently, the focus has shifted towards circular plastics and green chemistry, exemplified by Greenwise Campus, says the report.
Flevoland: Flevoland is a relatively young province, and home to the Innovatiecluster Noordoostpolder (ICNOP). Which is active in advanced manufacturing and automation. The region is also known for precision farming, sustainable food production, and clean energy.
Friesland: Startups and scaleups are spread throughout the province of Friesland, with water technology emerging as a crucial sector.
This industry receives strong support from the Water Campus in Leeuwarden, which plays a significant role in the green transition. The Water Campus contributes through its large-scale operations, international connections, and extensive collaborations with educational institutions.
Gelderland: Gelderland specialises in food and agriculture, life sciences and health, and the energy sector.
The Food Valley region, anchored by Wageningen University & Research (WUR), is a global food innovation hub, hosting deeptech startups like No Palm Ingredients and Hudson River Biotechnology.
Groningen: In Groningen, the life sciences and health sector is a key strength, alongside energy and digital innovation. This ecosystem also hosts the flagship event MXT, which explores the intersection of innovation and technology through meaningful connections, further solidifying Groningen’s role as a hub of progress and collaboration.
Limburg: The startup ecosystem in Limburg is primarily centered around the four Brightlands campuses, each specializing in health, materials, food, and smart services.
North Brabant: North Brabant is home to the top European innovation hub Brainport Eindhoven, centered around the Philips and ASML ecosystem. Brainport is home to scaling deeptech companies such as Axelera AI at the High Tech Campus, LeydenJar in Strijp-T, and DENS on the automotive campus.
North Holland: North Holland is fertile ground for innovation and sustainability. It is making strides in smart mobility with an €11M investment and fostering circular business models through Decathlon’s new e-business hub.
Key sectors like AI, quantum computing, climate tech, and the circular economy are growing, supported by initiatives such as Amsterdam’s academic AI labs and the EU quantum computer at Amsterdam Science Park.
Utrecht: Utrecht is a thriving center for startups and scaleups, particularly in sectors such as biosciences, healthcare, medical technology, gaming, cleantech, and IT. The region boasts notable companies like Merus, Channable, Vitestro, and SnappCar. Supporting this dynamic ecosystem is ROM Utrecht.
South Holland: South Holland is home to the Netherlands’ largest concentration of deeptech and impact startups and serves as a European hub for transition-focused innovation.
“The growth and development of the Dutch tech sector is stagnating. This is worrying because technology is becoming increasingly decisive in international competition,” says Constantijn van Oranje of Techleap.
“While other countries are investing in a healthy growth climate for tech companies, the Netherlands is falling behind. Our tech companies are suffering from regulatory pressure and need more growth capital, better access to talent, and global markets,” adds van Oranje.
The Dutch tech ecosystem is struggling with a drop in startup formation and a low rate of companies scaling up.
These challenges limit the growth and global competitiveness of local tech firms, says the firm
To address these issues, it is important to increase funding for early-stage and domestic growth, as well as to improve existing regulations and policies.
Read the full report here
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