Netherlands Exports Five Times More Venture Capital Than It Receives Domestically
Amsterdam, Monday, 16 February 2026.
Dutch investors shipped $113 billion in venture capital overseas over 25 years while domestic startups attracted only $23.6 billion, creating a massive funding imbalance that threatens the country’s innovation ecosystem and startup growth potential.
Structural Capital Flight Reflects European Market Challenges
The PwC report, released on Tuesday, February 11, 2026, reveals the Netherlands has become a net exporter of venture capital, with the 89.4 billion dollar gap representing a significant drain on domestic innovation funding [1]. This capital exodus reflects what Barbara Baarsma, PwC’s chief economist and University of Amsterdam professor, describes as structural issues in Europe’s capital markets [1]. The imbalance suggests Dutch investors are finding more attractive opportunities abroad, particularly in markets that offer faster scalability for startups [1]. Dutch venture capitalists are concentrating their investments heavily on the United States, the United Kingdom, India, and other European countries, rather than nurturing the domestic startup ecosystem [1].
Foreign Dependence Creates Strategic Vulnerability
While Dutch capital flows overseas, foreign investors are increasingly active in the Netherlands, creating a concerning dependency structure [1]. More than a quarter of venture capital invested in Dutch companies now originates from the United States, establishing what experts describe as strong dependence on American capital [1]. This foreign reliance poses strategic risks for the Netherlands’ innovation sector, particularly as geopolitical tensions between the U.S. and China have heightened the need for European strategic cooperation [1]. The current structure means Dutch startups are simultaneously losing access to domestic funding while becoming increasingly reliant on foreign investment decisions.
Market Evolution Shows Dramatic Growth Despite Geographic Concentration
The Dutch venture capital landscape has undergone remarkable transformation since 2000, with deals increasing over 4,500 percent and total investment volume rising roughly 5,700 percent [1]. However, this growth has been geographically concentrated, with the Greater Amsterdam COROP region’s share of Dutch VC deals declining from approximately 66% in the early 2000s to about 30% currently [2]. Since 2016, most Dutch regions have seen at least one venture capital investment annually, signaling a shift toward what PwC describes as a polycentric VC model [2]. Regional specializations are emerging, with Eindhoven focusing on high-tech manufacturing, Delft concentrating on AI and data innovation, and various regions targeting energy and climate solutions [2].
Pandemic Boom Gives Way to Market Correction
The venture capital surge experienced exceptional growth during the pandemic period, driven by massive government and central bank stimulus measures [1]. “During the pandemic, there was a huge amount of capital available because governments and central banks stimulated the economy,” Baarsma explained, noting that accelerated digitalization led large companies to acquire innovative startups for operational integration [1]. This created what she termed “an exceptional investment wave,” but a global correction began in 2022 following the end of pandemic-era stimulus and rising interest rates [1]. Investment patterns are now shifting from traditional telecom and ICT sectors toward knowledge-intensive areas including AI, cleantech, and deeptech technologies [1].
Government Intervention Attempts to Stem Capital Outflow
Recognizing the funding imbalance, the Dutch government has introduced the National Investment Institution and committed to investing 100 million euros annually in regional campuses and innovation ecosystems [1]. Baarsma suggests these measures could prove effective if they target risks that private investors typically avoid, stating: “If it has to be fully market-conform, it doesn’t add much. You want an institution to take risks that private parties shy away from” [1]. The success of these interventions will depend on their ability to create market conditions that encourage domestic investment retention. Gijs van Leeuwen, Industry Leader Private Equity at PwC, emphasizes that “venture capital is risk capital deployed in places where investors expect new markets to emerge,” highlighting the importance of creating compelling domestic opportunities [2].
European Integration Holds Key to Reversing Capital Flight
The solution to the Netherlands’ venture capital exodus may lie in broader European market integration, according to PwC’s analysis [1]. “Europe’s internal market is larger than the United States, but we don’t exploit that scale,” Baarsma noted, pointing to barriers across 27 member states, including capital market regulations that fragment the investment landscape [1]. The growing need for strategic sovereignty in sectors like AI, climate technology, deeptech, and healthcare is expected to drive capital closer to home as geopolitical tensions increase [3]. Harmonized rules across European markets could facilitate cross-border investments and reduce the current capital outflow, while Barbara Baarsma concludes that “venture capital shows where new value is created, investing not in yesterday’s structures, but in the opportunities of tomorrow” [1].