Brabant's Startup Boom: 22% Growth Propels Province to Third in Netherlands
Eindhoven, Friday, 28 June 2024.
Brabant’s startup ecosystem is thriving, with a 22% increase in startups since 2020. The province now boasts 1,462 startups, making it the third-largest startup hub in the Netherlands. Investments have surged, particularly in deep tech, with Brabant startups averaging €7.2 million in funding compared to the national €5.6 million.
Significant Investment Growth
The remarkable growth in the number of startups in Brabant is accompanied by a surge in investments. Between 2020 and 2023, total investment in Brabant startups amounted to €1.3 billion, a significant increase from the €369 million recorded between 2016 and 2019[1]. This influx of capital has particularly favored deep tech startups, with the average investment in Brabant reaching €7.2 million in 2023, compared to the national average of €5.6 million[2].
Deep Tech Dominance
The focus on deep tech is a defining characteristic of Brabant’s startup ecosystem. Brainport Eindhoven, a leading technology hub within Brabant, plays a pivotal role in this landscape. Known for its emphasis on research and advanced technology, the region hosts globally renowned companies such as ASML and Philips[3]. These companies continue to innovate in areas like semiconductors and health technology, reinforcing Brainport’s status as the heart of Brabant’s startup ecosystem.
Regional Development
While Brainport Eindhoven leads the charge, other regions within Brabant, such as Breda, Tilburg, ‘s-Hertogenbosch, and Oss, are also experiencing steady growth[4]. Notably, Zuidoost-Brabant saw the strongest absolute growth in the number of startups between 2020 and 2024. However, the relative growth was more pronounced in other subregions, indicating a widespread entrepreneurial spirit across the province.
Challenges and Future Prospects
Despite the positive trends, scaling up remains a challenge for many startups in Brabant. Only 4.4% of startups founded since 2010 have grown to more than 50 employees, compared to the national average of 6.4%[5]. The scarcity of highly skilled IT and technological talent is one of the factors contributing to this issue. The Birch report suggests that closer collaboration and less fragmentation among organizations in Brabant could facilitate faster growth and help startups transition to scale-ups.
Collaboration and Synergy
The synergy between different stakeholders in the region is crucial for the continued success of Brabant’s startup ecosystem. Marijn van Aerle, CTO and co-founder of scale-up Floryn, highlights the opportunities and support available for startups and scale-ups in Brabant. Similarly, Jacomine Ravensbergen, Board of Directors of Avans Hogeschool and chairman of Braventure, emphasizes how various stakeholders contribute to an environment where startups can thrive[6].