Dutch Tech Sector Faces Startup Decline Amid Funding Challenges
Amsterdam, Wednesday, 12 February 2025.
The Dutch tech sector sees stagnation with a 35% decrease in new startups raising over €100,000 in 2024. Domestic investment also fell sharply, impacting growth potential.
Investment Landscape Shows Mixed Signals
Despite overall venture capital reaching €3.1 billion in 2024, marking a 47 percent increase from 2023 [1][2], the Dutch tech ecosystem faces significant challenges. Only 104 startups managed to raise more than €100,000 in 2024, compared to 172 in 2023, representing a concerning -39.535 percent decline [1]. Most notably, domestic investor participation has plummeted from 61% to just 15% of total investments [2][5], indicating a growing dependence on foreign capital.
Deeptech Sector Shows Resilience
The deeptech sector emerges as a bright spot in the Dutch tech landscape, comprising 35% of the ecosystem with stable investments of €1.1 billion [4]. The sector has demonstrated impressive growth, with its scaleup ratio increasing from 17% to 35% over the past five years [4]. This success is largely attributed to targeted public investment initiatives, including projects like Quantum Delta NL and developments in Brainport Eindhoven [4].
Regional Disparities and Economic Impact
The Dutch tech ecosystem shows significant regional concentration, with North Holland dominating at 60% of VC investment (€1,876.4 million) and 40% of tech jobs [2]. South Holland and Utrecht follow as key tech hubs, collectively accounting for substantial portions of both investment and employment [2]. This geographical disparity highlights the need for more balanced regional development across the Netherlands [2].
Government Response and Future Outlook
Prime Minister Dick Schoof has expressed serious concern about the decline in startup numbers [8], while Special Envoy Constantijn van Oranje warns that ‘the Netherlands is falling behind’ as other countries invest in healthier growth climates for tech companies [1]. The sector faces multiple challenges, including regulatory pressure and limited access to growth capital and talent [1]. Industry leaders emphasize the urgent need for policy reforms to strengthen domestic investment capacity and improve access to global markets [1][5].