Dutch government to boost tech startups amid funding slowdown
THE HAGUE, Netherlands – The Dutch government aims to revitalize the country's technical startup sector and attract venture capital, Prime Minister Dick Schoof announced.
Despite being a leader in chip equipment and home to ASML, the world's top chip equipment manufacturer, the Netherlands' economy relies on related startups for future growth.
However, TechLeap, the primary organization supporting these startups, reported at its annual gathering that sector growth is decelerating, with fewer small businesses securing substantial funding.
Schoof addressed the event, stating that the government plans to streamline regulations and increase investment in artificial intelligence.
"We need to ensure an environment that attracts venture capital investment," Schoof said, expressing concern about Europe potentially falling behind the United States and China.
Eindhoven, home to ASML and a hub for technical startups, has played a vital role in bolstering the Dutch economy amid weakness in neighboring Germany.
TechLeap data shows that venture capital funding for Dutch firms experienced relative growth in 2024, increasing 47% to €3.1 billion, ranking the Netherlands fourth in Europe behind the UK, Germany, and France. However, it also found that only 104 new Dutch companies secured funding of over €100,000 in 2024, a decrease from 172 in 2023.
Foreign investors accounted for most of the funding. Two Dutch companies, Mews (hotel software development) and DataSnipper (AI-powered audit automation), achieved unicorn status in 2024, with private market valuations exceeding €1 billion.