Funding Challenges for Green Tech Start-Ups in the Netherlands
Amsterdam, Saturday, 22 November 2025.
A recent study highlights funding gaps for green tech start-ups in the Netherlands, especially for hardware companies, emphasizing the need for tailored investment strategies to support sustainable growth.
Current State of Green Tech Funding in the Netherlands
Despite significant advancements in the availability of venture capital for green technology start-ups in the Netherlands, there remain considerable funding challenges, particularly for hardware-focused companies. These enterprises often struggle to attract the necessary capital to scale their operations. The study utilizing a longitudinal quantitative methodology highlights these persistent gaps in equity funding, emphasizing the importance of addressing these challenges to foster sustainable innovation [1].
The Patient Capital Problem
The study identifies a ‘patient capital’ issue, which refers to the lack of long-term investment that green tech start-ups require to develop and commercialize their technologies effectively. While software and service-based green tech companies have seen an increase in venture capital and crowdfunding support, hardware companies face more significant barriers, particularly during the scale-up phase [1].
Comparison with International Markets
When compared to other major European markets and the United States, Dutch investors are generally more risk-averse, creating a structural funding gap that undermines the growth potential of these start-ups. This gap is particularly pronounced in the hardware segment, where the need for tangible assets requires more substantial capital investment [1].
Policy Recommendations for Bridging the Gap
To address these funding challenges, the study suggests tailored investment strategies and policy interventions. These include expanding access to patient capital through public-private partnerships, enhancing government incentives for investors willing to support green tech hardware companies, and developing specific frameworks to attract international investors. These measures aim to bridge the existing funding divide, thereby promoting the growth of sustainable innovations in the Netherlands [1].