Netherlands Tech Sector Grows to 11,000 Companies But Struggles to Scale Globally

2026-02-12 community

Amsterdam, Thursday, 12 February 2026.
Despite attracting €2.64 billion in venture capital and reaching 11,301 active companies, Dutch tech faces a critical scaling problem that threatens its global competitiveness.

Strong Foundation Masks Scaling Deficiencies

The State of Dutch Tech 2026 report, presented at Techleap’s annual flagship event in early February 2026, reveals a complex picture of growth overshadowed by persistent scaling challenges [1]. The Dutch tech ecosystem now encompasses 11,301 active tech companies and secured €2.64 billion in venture capital funding during 2025, representing an 11.5 percent increase in capital compared to 2024 [2][3]. However, this apparent success masks a concerning reality: the number of investment deals declined by 14.5 percent, indicating fewer companies accessing funding despite increased total investment [2]. The scale-up ratio—measuring startups that raise over €10 million—reached 21.6 percent in 2025, up from about 21 percent in 2024, yet this improvement falls short of the European average of 24.1 percent and dramatically lags behind the US ratio of 52.2 percent [1][2].

International Competition Outpaces Dutch Performance

The Netherlands faces intensifying competitive pressure from neighboring European markets, with Germany achieving a scale-up ratio of 39.2 percent—nearly double the Dutch performance [2]. This disparity becomes more pronounced when examining US investor participation, which tripled to 40 percent of Dutch breakout deals exceeding €50 million in 2025, up from 14 percent in 2024, while European participation fell to 21 percent [2][3]. The shift toward foreign capital dependency highlights a critical weakness in domestic growth funding capacity. Constantijn van Oranje, Special Envoy at Techleap, emphasized the urgency of addressing these challenges, stating that “six years of State of Dutch Tech reports show a picture of stagnation and limited growth, which we can no longer afford” [2]. The formation of new startups has declined for the second consecutive year, dropping to 117 new firms in 2025 from nearly 200 in 2023, signaling potential pipeline concerns [6][7].

AI Talent Paradox Reveals Commercialization Gap

Despite boasting Europe’s highest AI talent density at 10.9 professionals per 10,000 inhabitants, the Netherlands struggles to convert this advantage into scalable businesses [2][3][5]. Only 21.2 percent of Dutch AI startups achieve scale-up status, compared to the European average of 31.1 percent and the dramatically superior US rate of 80.9 percent [2][5]. The Netherlands hosts approximately 1,000 AI-focused tech companies, primarily concentrated in Amsterdam, but lags behind major European centers like London, Paris, and Berlin [5]. A concerning 89 percent of Dutch AI startups develop vertical solutions on US foundation models, highlighting technological dependency [2]. Thomas Mensink, a tech analyst at Golden Egg Check, captured the challenge succinctly: “It is striking that the number of large funding rounds for Dutch AI start-ups is lagging…Who fits that description in the Netherlands? I cannot name a single Dutch AI champion” [5]. This talent-to-commercialization gap is exemplified by General Intuition, which relocated from Nijmegen to New York in 2024 and subsequently raised $115 million in 2025 [5].

Deeptech Success Highlights Broader Ecosystem Weaknesses

While the broader Dutch tech sector struggles with scaling, deeptech companies demonstrate the potential for success within the ecosystem. Deeptech firms represent only 12 percent of all Dutch tech companies but account for roughly 40 percent of scale-ups and attract 41 percent of total venture capital investment [2][8]. The deeptech scale-up ratio reaches approximately 38-39 percent, more than doubling the 17 percent rate in non-deeptech sectors [8]. Since 2019, deeptech has maintained a consistent two-to-one scaling advantage over the rest of Dutch tech [8]. However, even this success story faces challenges, with early-stage deeptech funding declining since 2023, raising concerns about future pipeline constraints [8]. The geographic concentration of investment remains problematic, with Noord- and Zuid-Holland accounting for over 70 percent of venture capital flows, limiting opportunities in other regions [1][2]. Rinke Zonneveld, CEO of Invest-NL, highlighted the systemic funding gap: “For technologies with long development times and high capital needs, there is still too little suitable financing available during the growth phase. Without patient capital, the development of strategically important technologies will stall” [2].

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venture capital Dutch tech