Dutch Startup Investments Dip in Q2 2024: A Temporary Setback?
Amsterdam, Friday, 26 July 2024.
Dutch startup investments dropped to €430 million in Q2 2024, a 10% year-on-year decrease and 59% quarter-on-quarter decline. Despite this, total investments for the first half of 2024 reached €1.5 billion, surpassing 2023’s €900 million, suggesting potential for a stronger year overall.
Decline in Investments
The second quarter of 2024 saw a significant decline in investments in Dutch startups, totaling approximately €430 million. This figure represents a 10% decrease compared to the same quarter last year, where investments amounted to €475 million, and a striking 59% drop from €1.05 billion in the previous quarter[1].
Number of Deals and Large Rounds
The total number of deals also saw a decline, dropping by 20% compared to the same quarter last year, from 56 to 45 deals. Notably, the number of Series A deals halved, reducing from 20 to 10[1]. Additionally, there were no large investment rounds of €100 million or higher in the second quarter, a stark contrast to the €548 million recorded in such rounds in the first quarter[1].
Notable Investments
Despite the overall decline, there were still significant investments in specific sectors. Three quantum tech startups secured funding: Qblox received $26 million, Orange Quantum Systems’ amount was not disclosed, and Q*bird raised €2.5 million[1]. The largest deals in the past quarter included Axelera AI with $68 million, BioBTX with €42 million, and Mosa Meat with €40 million[1].
Sector Focus and European Comparison
The largest investment rounds in Q2 2024 focused on artificial intelligence, sustainability, and biotech sectors. Overall European investment in the tech sector increased by 17%, from $13.6 billion to $15.8 billion, indicating a contrasting trend where the Netherlands experienced a dip while Europe as a whole saw growth[1].
Optimistic Outlook for 2024
Despite the Q2 decline, the total investment in Dutch tech companies for the first half of 2024 stands at €1.5 billion, up from €900 million in the first half of 2023. This suggests that 2024 could still outperform the previous year[1]. Lucien Burm of the Dutch Startup Association highlighted that while Q2 was disappointing, the expectation is that 2024 will ultimately surpass 2023[1].
Challenges and Future Prospects
Thomas Mensink from Golden Egg Check noted a significant reduction in investments in the €4-15 million segment in 2024 so far, pointing to potential challenges in securing mid-range funding[1]. Maarten Cleeren from Techleap emphasized the importance of available financing across various growth phases to prevent growth inhibition[1].