Dutch Startup Funding Slows: Golden Egg Check Raises €5M Amid Market Shifts
Enschede, Friday, 19 July 2024.
Golden Egg Check, a Dutch startup analyst, secured €5M for its VC fund amidst a broader slowdown in Dutch startup investments. The fund aims to make 35 tech investments over three years, focusing on early-stage startups. This comes as Q2 2024 saw only €430M invested in Dutch startups, down from €1 billion in Q1, highlighting shifting market dynamics.
Current State of Dutch Startup Investments
The €5 million raised by Golden Egg Check (GEC) for its VC fund, GEC Capital I, is a significant move in an otherwise tepid investment climate. Notably, this fund, launched in 2022, already boasts a portfolio of 22 startups, primarily Dutch software companies. The focus on early-stage investments and co-investing with other firms is geared towards leveraging collective expertise and providing quicker access to capital for startups.
A Shift in Investment Trends
The second quarter of 2024 saw a marked decline in investments in Dutch startups, with only €430 million raised compared to over €1 billion in the first quarter. This decline is reflective of a broader trend, with the number of investments in the €4-15 million range (typical Series A rounds) nearly halving compared to previous years. Experts like Thomas Mensink from Golden Egg Check attribute this to companies waiting for more opportune moments to enter the market for their Series A rounds.
Strategic Moves and Future Outlook
Despite the slowdown, the Dutch startup ecosystem remains robust, with expectations that total investments in 2024 will surpass those of 2023. Noteworthy investments in Q2 2024 include €63 million raised by chipmaker Axelera AI and €42 million by BioBTX. These substantial investments highlight the potential within the Dutch market, even amidst a general downturn.
Community and Co-Investment Strategy
Golden Egg Check’s strategy involves building a strong founder community and fostering peer-to-peer learning among entrepreneurs. GEC Capital’s investors bring expertise in fields like fintech, cybersecurity, e-commerce, AI, online marketplaces, and HR tech. Venture partner Ytsen van der Meer emphasizes the importance of this community in aiding portfolio companies’ progress by leveraging their collective knowledge and experience.
Conclusion
Golden Egg Check’s recent funding round is a bright spot in an otherwise challenging investment landscape for Dutch startups. By focusing on early-stage investments and co-investment strategies, GEC aims to bolster the Dutch tech ecosystem. As the market adjusts, the role of strategic funds like GEC Capital I will be crucial in navigating the shifting dynamics and ensuring sustained growth.