The Dutch tech sector is witnessing mixed trends, with a rise in venture capital investments but continued struggles for startups seeking early-stage funding. While the Netherlands secured €3.1 billion in venture capital in the past year, the number of startups scaling up remains relatively low. Investor participation in major funding rounds has also shifted, with European investors playing a more significant role while Dutch investors reduce their contributions. These trends highlight the challenges the country’s tech ecosystem faces as it seeks to remain competitive internationally.
Earlier reports on Dutch tech investments indicated a fluctuating landscape, with past concerns centering on limited access to capital and regulatory hurdles. Compared to previous years, the latest figures show an increase in venture capital investment but a decline in early-stage funding opportunities. The number of scaleups has grown, yet the Netherlands still trails behind other European nations in terms of startup maturity and investor engagement. These findings suggest that while the Dutch tech ecosystem is expanding, systemic barriers continue to hinder growth.
Why is early-stage investment a major concern?
Gaining early-stage funding remains a primary challenge for Dutch startups. Only 104 startups managed to secure more than €100,000, representing a 23% drop from the previous year. The total number of investment deals also saw a decline of 20%, raising concerns about the long-term sustainability of the startup ecosystem. Moreover, Dutch investments in artificial intelligence lag behind those in countries such as Switzerland and the UK, further limiting the potential for technological advancement.
How are Dutch scaleups performing?
The number of scaleups in the Netherlands increased by 12%, reaching 268 companies. However, the country’s scaleup ratio, which measures the percentage of startups that grow beyond €10 million in funding, remains below the European average. While two Dutch companies, Mews and DataSnipper, achieved unicorn status last year, the overall scaleup success rate is still lower than in the United States and other leading tech ecosystems.
The deep tech sector continues to expand, with deep tech ventures now accounting for 12% of all startups in the Netherlands. Investments in this sector have grown substantially, with total funding more than doubling from €430 million in 2019 to €1.126 billion in 2024. The scaleup ratio for deep tech firms has also increased, reaching 35%, which is significantly higher than the ecosystem average. Notably, substantial investments have been directed towards semiconductor companies, with Nearfield Instruments raising €135 million and Axelera AI securing €61.8 million.
Employment trends in the Dutch tech sector reflect a modest increase in hiring rates, with a 17% rise in recruitment activity among startups and scaleups. However, the Netherlands still lags behind other European countries in job creation within the tech industry. Diversity in the startup ecosystem has also improved, with a 22% increase in the number of companies co-founded by women, though investment in these businesses has declined.
Regional differences play a significant role in shaping the Dutch tech ecosystem. Most venture capital investments are concentrated in North Holland, South Holland, and Utrecht, while other regions exhibit specialized strengths in areas like deep tech, agriculture, and life sciences. For instance, North Brabant remains a hub for semiconductor development, while Groningen focuses on energy and digital health innovation. These regional strengths contribute to the overall technological landscape but also highlight disparities in funding distribution.
“The growth and development of the Dutch tech sector is stagnating. This is worrying because technology is becoming increasingly decisive in international competition,” said 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,” he added.
Dutch startups continue to face hurdles in securing early-stage funding, limiting their ability to scale. While venture capital investment has increased overall, the participation of Dutch investors in major rounds has declined. The deep tech sector shows promising signs of expansion, with growing investment and a strong scaleup ratio. However, regional disparities and regulatory constraints remain key challenges. Addressing these issues will require strategic policy adjustments, increased domestic investment, and better access to global markets.
