The Hague, Netherlands, February 12 – Dutch Prime Minister Dick Schoof announced plans to invigorate the country’s technical startup ecosystem and attract venture capital investment. This initiative comes in response to recent industry research revealing a deceleration in the sector.
Dutch Prime Minister Dick Schoof speaks during the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 22, 2025.
As a global leader in chip equipment and home to ASML, the world’s largest manufacturer of such equipment, the Netherlands heavily relies on the success and growth of related startups. However, the organization TechLeap, dedicated to promoting these startups, reported at its annual gathering in The Hague that the sector’s expansion is currently stagnating, with fewer small firms securing substantial funding.
During the event, Prime Minister Schoof stated that the government intends to reduce bureaucratic hurdles and increase investment in artificial intelligence, although he did not provide specific details. “The alarming thought, of course, is that as Europe, we are let down, and we cannot keep up with the United States and China. We have to do something about it,” Schoof said. “We have to make sure that … we create an environment in which venture capital is going to invest.”
Eindhoven, located in the southern Netherlands, is where ASML is headquartered. The city also hosts a significant concentration of technical startups and has been instrumental in supporting the Dutch economy, particularly given the economic challenges faced by neighboring Germany.
TechLeap’s findings indicated that venture capital flowing to Dutch firms was a relative bright spot in 2024, increasing by 47% to 3.1 billion euros. This positioned the Netherlands in fourth place in Europe, behind Britain, Germany, and France, reports TechLeap. In contrast, the United States saw $190 billion in venture capital investments during the same period, according to DealRoom data.
Despite the overall increase, only 104 new Dutch companies secured funding exceeding 100,000 euros ($100,000) in 2024, down from 172 in 2023. A large portion of the capital came from foreign investors.
In 2024, two Dutch companies achieved unicorn status, reaching a private market valuation of over a billion euros. These were Mews, a hotel software developer, and DataSnipper, a firm that uses AI to automate auditing functions.
