7 key takeaways concerning the Dutch tech startup ecosystem you should know

The Dutch tech startup ecosystem has been steadily flourishing over the previous 5 years, establishing itself as certainly one of Europe’s most vibrant hubs. But, there are nonetheless hurdles the Netherlands wants to beat with the intention to attain its full potential and efficiently compete on a world scale.

That’s in keeping with the annual State of Dutch Tech report by TechLeap, a non-profit organisation which helps quantify and speed up the ecosystem within the Netherlands.

Listed below are seven key takeaways from the report you should find out about:

The Netherlands homes the EU’s most profitable ecosystem

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The guts of tech is coming to the center of the Mediterranean

In 2022, the Amsterdam-Delta area was the main ecosystem within the EU, overtaking Paris and Berlin. Globally, it ranks on the fourteenth place, behind cities within the US, Asia, and the UK.

Nonetheless, the mixed valuations of Dutch startups stagnated, with

the tech sector within the nation dropping from the fourth to the sixth place globally at €0.4T in mixture public market cap. The Netherlands continues to be the chief within the EU due to tech giants ASML, Prosus, and Adyen.

Fintech and healthcare have been the dominant startup sectors within the nation, with the primary producing the best variety of scaleups as properly. The Netherlands additionally welcomed one new unicorn in 2022, bringing its complete to 1.4 unicorns per million inhabitants. This locations it above France (0.7) and Germany (0.5), however under Sweden (2.4) and the UK (1.7).

The tech sector can also be rising exterior the Amsterdam-Delta

Though the North Holland area stays the biggest startup centre within the nation, producing 38% of startups jobs, different native hubs are additionally rising due to regional specialisations and mutual cooperation.

As an illustration, North Brabant confirmed a 27% year-on-year development in deeptech jobs, Utrecht elevated its numbers of startups by 900, and Gelderland has develop into a frontrunner in foodtech.

Job creation will increase, however attracting expertise stays a problem

In 2022, startup-generated jobs reached 135K, rising from 109K in 2020 and 130K in 2021. Attracting tech expertise, nonetheless, presents to be difficult for a lot of startups.

Particularly, the share of hard-to-fill tech jobs has elevated to 59%. On common, a majority of these vacancies keep open for greater than 60 days.

This phenomenon occurred in different ecosystems as properly, together with Sweden, Germany, France, and the US.

Dutch startups battle scaling up primarily resulting from lack of funding

The startup to scaleup ratio within the Netherlands (22%) is decrease in comparison with different European hubs, akin to Germany (37%), the UK (30%), and France (26%). That’s primarily due to inadequate capital.

In 2022, complete VC funding within the Netherlands was €2.6 billion with the common funding being €0.26 million per startup. This was considerably decrease than different main EU startup ecosystems. For reference, Sweden’s common was €0.9 million per startup.

Regardless of the Netherlands’ prowess in scientific and educational analysis, deeptech is amongst the underinvested sectors with €0.7 billion in funding in 2022 and a 23% startup to scaleup ratio.

On the brightside, investments on influence startups are on the rise with over €1 billion raised in 2022. And investments in all sectors overperformed pre-pandemic ranges.

The gender hole

The gender hole continues to be a problematic subject inside the trade. Simply 10% of Dutch tech startups are run by ladies, and funding for feminine entrepreneurs is equally inadequate. Solely 0.7% of enterprise capital investments have been raised — since 2019 — by companies with feminine founding groups, lagging behind the UK (2%), Germany (1.5%), and France (1.2%).

The potential for additional development

Based on the report, the Dutch tech ecosystem has a large potential of development. Specifically, it may add 250K jobs and €400 billion in worth by 2030. This may very well be completed by supporting the expansion and influence of college spin-offs, bridging the expertise and variety hole, and cultivating a extra resilient and internationally-embedded VC market.