In Q3 2025, the Dutch startup ecosystem saw investments of €449 million, reflecting a slight year-on-year rise of 3.5% over Q3 2024 but a 37% dip compared to Q2. Despite fewer early-stage investments, late-stage investments drove the bulk of the capital allocation. This trend underscores a lingering contrast within the sector—while the aggregate funding displays resilience, foundational levels of early-stage investments show a stark decline. The shifts in funding dynamics are essential to understanding both the vibrancy and the vulnerabilities within the burgeoning field of Dutch startups.
Reports in recent years have painted an optimistic picture of the Dutch venture capital market, especially during the 2021-2022 period when investments peaked. However, as of late 2025, a different pattern emerges. The marked reduction in early-stage deals, coupled with an increase in late-stage investments, presents a paradox. A stable yet uneven growth pattern indicates a growing trend of selective investment, focusing more heavily on advanced startups. This transition highlights a pivotal moment in the Dutch tech landscape where historic trends face new challenges. Comparing the past climate with the current report suggests a critical need for strategic resource allocation to maintain ecosystem integrity.
How Significant Are Changes in Deal Numbers?
The recent quarter saw a total of 79 deals, marking a 22% drop from the previous quarter, which totaled 101. Additionally, investments in the pre-seed phase have shrunk considerably, dropping to just 12 deals from 20 in the last period. “The Dutch venture capital market has reached a status quo of approximately €500 million each quarter,” voiced Thomas Mensink of Golden Egg Check. Despite escalating funds in later rounds like Series B+, early investments continue to remain a fraction of their once robust state.
Why Are Late-Stage Investments Dominating?
Dominating the volume of investments, late-stage deals accounted for a substantial 68.5% of capital movements, driven by notable funding like Framer’s $100 million infusion. The uptick in later stages unveils the strategic focus on scaling and expansion. Lucien Burm, chair of the Dutch Startup Association, emphasized the imperatives,
“Growth in later stages…has also become a cause for concern. Investments in critical technology and the growth phase are important,”
underscoring the need for holistic and broad-based investment approaches.
Specific sectors showed exceptional growth, with foodtech pulling in about €60 million and cleantech and high-tech collectively benefiting from a significant capital influx. A notable trend emerged as nearly one-third of all investments were funneled into AI-focused startups, though none went towards fundamental AI development.
Public funds played a pivotal role in propelling deals, with entities like Invest-NL contributing to major rounds. Gabriel Zonneveld, CEO of Invest-NL, shared his concerns,
“The limited number of early-stage deals is particularly worrying…requires continued attention from policymakers,”
signaling a need for structural changes to sustain the innovation pipeline.
For the Dutch startup ecosystem to thrive, it must navigate the challenge of balancing immediate large-scale funding with long-term foundational growth. If unchecked, the current trajectory could lead to a weakened foundational base, reallocating innovations beyond national borders. Past trends suggest that without recalibrating investment strategies to include early-stage backing, foreign entities may capitalize on unexplored opportunities. Implementing comprehensive, technology-agnostic policies could bolster investment efforts across all stages, ensuring robust development of up-and-coming enterprises.
