Dutch Startups Consider Relocation Amid Innovation Policy Stagnation
Amsterdam, Tuesday, 28 October 2025.
Many Dutch startups are contemplating moving abroad due to inadequate innovation policies, risking the Netherlands’ competitive position in the global startup ecosystem.
The Current Landscape
A significant portion of Dutch startups is contemplating relocating their operations abroad due to dissatisfaction with the current innovation policies in the Netherlands. A survey conducted by the Dutch Startup Association (DSA) revealed that 37% of entrepreneurs consider it likely or very likely that they will move their businesses within the next two years. The survey underscores a growing sentiment among startup founders who feel constrained by local policies [1].
Challenges in Securing Investment
One of the primary reasons cited for considering relocation is the difficulty in securing venture capital, especially during the growth phases of startups. According to the DSA’s quarterly report, the number of investments in Dutch startups has fallen to the lowest level in five years. This decline in investment puts further pressure on startups seeking to expand and innovate [1].
Regulatory and Market Barriers
Entrepreneurs also point to the inefficiencies within the European internal market and the cumbersome regulatory environment. Although the European internal market has been established for years, startups still face high internal trade costs, averaging 44% for goods and 110% for services, compared to just 15% in the United States. Additionally, the inconsistent and excessive regulatory burden across different EU member states further complicates business operations, making it less attractive for startups to remain in Europe [1].
The Broader Impact on Europe’s Startup Ecosystem
The potential exodus of startups from the Netherlands reflects a broader trend across Europe. The European Commission’s plans to create a ‘28th regime’ aimed at establishing a uniform legal entity across the EU have faced skepticism. Concerns that it might result in 27 different national interpretations rather than a singular system could exacerbate the regulatory challenges startups face. Such developments threaten to undermine Europe’s competitiveness in the global startup ecosystem, as articulated by key figures within the Dutch startup community [1].