The Dutch government is ramping up efforts to strengthen its tech startup ecosystem and attract more venture capital, according to Prime Minister Dick Schoof.
Speaking at the annual TechLeap event in The Hague on Wednesday, Schoof emphasized the need to foster a more supportive environment for emerging technology firms, particularly as the sector faces a slowdown.
A Key Player in Global Tech Innovation
The Netherlands has long been a powerhouse in the semiconductor industry, home to ASML, the world’s leading chip equipment manufacturer. However, the country’s broader tech startup landscape is showing signs of stagnation.
TechLeap, the organization dedicated to fostering Dutch startups, reported that while venture capital investment in 2024 rose by 47% to €3.1 billion, the number of small firms securing major funding has declined. Only 104 startups received over €100,000 in funding, compared to 172 in 2023.
This trend raises concerns about the Netherlands’ ability to compete with the U.S. and China, both of which dominate global tech funding. The U.S., for instance, saw $190 billion in venture capital investments in 2024, dwarfing Europe’s figures.
Government Intervention to Fuel Growth
In response to these challenges, Prime Minister Schoof announced plans to cut bureaucratic hurdles and increase investments in artificial intelligence. While he did not provide specific policy details, he stressed the urgency of action.
“The alarming thought, of course, is that as Europe, we are falling behind. We must ensure we create an environment where venture capitalists feel confident to invest,” Schoof stated.
Eindhoven, a key tech hub and home to ASML, has played a crucial role in supporting the Dutch economy amid economic struggles in neighboring Germany. However, experts warn that without a more proactive approach, the Netherlands risks losing its competitive edge.
A Growing Reliance on Foreign Investors
One notable aspect of the funding landscape is the increasing reliance on foreign capital. While local investment is rising, a significant portion of venture funding comes from international investors. This trend underscores the need for policies that encourage domestic funding sources and strengthen homegrown innovation.
Despite the challenges, 2024 saw two Dutch startups reach “unicorn” status—Mews, a hotel software developer, and DataSnipper, an AI-driven auditing firm. Their success highlights the Netherlands’ potential to produce globally competitive tech companies.
The Road Ahead for Dutch Startups
To maintain its position as a tech leader, the Netherlands must address the funding gap and create a more innovation-friendly regulatory environment. Industry experts believe that targeted incentives, stronger public-private partnerships, and a focus on emerging technologies like AI could drive future growth.
With the government now pledging action, Dutch startups may soon find themselves in a more supportive ecosystem. However, the effectiveness of these promised reforms remains to be seen.
