The Hague, Netherlands

Dutch Prime Minister Dick Schoof announced plans to boost technical startups and attract venture capital after new research showed the sector is struggling.

As a leader in chip equipment and home to the world’s largest chip equipment manufacturer ASML, the Netherlands heavily relies on startups for future economic growth. However, TechLeap, the main organization promoting these startups, reported at its annual meeting that growth is stalling, with fewer small firms securing significant funding.

Schoof emphasized the urgency of creating a favorable environment for venture capital investment, expressing concerns that Europe is falling behind the United States and China. He pledged to cut bureaucratic hurdles and increase investments in artificial intelligence.

Eindhoven, home to ASML and many technical startups, has been crucial for the Dutch economy amidst challenges in Germany.

Despite overall funding concerns, TechLeap noted a positive development in 2024, with venture capital investments in Dutch firms increasing 47% to 3.1 billion euros, placing the Netherlands fourth in Europe, behind the UK, Germany, and France. This is in stark contrast to the $190 billion in the U.S.

However, only 104 new Dutch companies received over 100,000 euros in funding in 2024, a decline from 172 in 2023, with most funding arising from foreign investors. Two companies achieved unicorn status in 2024: hotel software developer Mews and AI auditing firm DataSnipper.