Amsterdam is ranked one of Europe’s top tech ecosystems
The Amsterdam region is ranked among Europe’s top 3 ecosystems, according to the recently released 2023 Global Startup Ecosystem Report (GSER). The report offers a comprehensive analysis of the state of startup ecosystems worldwide, and reveals the region's thriving tech landscape is strengthened by well-established fintech and life sciences companies, along with the growing momentum of cleantech, Big Data, and AI.
Assessing the global startup landscape
Startup Genome and the Global Entrepreneurship Network (GEN) have announced the release of the highly anticipated 2023 Global Startup Ecosystem Report (GSER). Unveiled at this year's The Next Web conference hosted in Zaandam, the report draws from an extensive dataset comprising information on over 3.5 million startups across more than 290 ecosystems worldwide.
The latest edition of the report reveals that the top 3 European ecosystems have maintained their positions from 2020. London claims the top spot, followed by Berlin (#2), Amsterdam-Delta (#3), Paris (#4), and Stockholm (#5). Globally Amsterdam ranks 14th, with a total ecosystem value of $82B (€71.1B) between July 1, 2020, and December 31, 2022. That’s a 36.6% increase from the previous performance period.
Amsterdam’s established entrepreneurial spirit
From the city's beginnings as a historical trading hub, Amsterdam’s entrepreneurial spirit and free-thinking culture have made it an attractive place for business and innovation leaders. Home to approximately 4000 startups employing a staggering 196,000 people, Amsterdam has emerged as a global innovation powerhouse. The city's tech ecosystem has witnessed an influx of funding in recent years, making it a magnet for venture capital firms seeking promising investment opportunities.
Despite a relatively small population of less than 1 million people, Amsterdam has established itself on the international scene. The city’s startups were worth €227B in June 2022, placing the region second only to London in Europe at the time.
In the first half of 2022, venture capitalists poured an impressive €2.8B into Amsterdam-based startups, marking the 2nd highest amount of funding the region has ever seen in a half-year period. While the funding figures moderated in the latter half of the year, startups still received a substantial €698M. This impressive financial backing signifies the confidence investors place in Amsterdam's tech startups.
Fintech is leading the way, but other sectors are catching up
Amsterdam's fintech ecosystem has emerged as a driving force behind the city's entrepreneurial growth. With over 20% of startup jobs in the ecosystem dedicated to fintech, the sector continues to thrive. In 2022, the industry attracted $208M (€189M) in funding and added 1,200 jobs, showcasing its robust growth and potential.
However, Amsterdam's tech ecosystem isn't solely reliant on fintech. Other industries are also flourishing, contributing to the city's tech prowess. The healthcare sector raised $177M (€161M) in funding during the first half of 2022, demonstrating strong investor interest in health startups. Transportation and education sectors also attracted significant funding, securing $142M (€129M) and $31M (€28M), respectively.
Moreover, Amsterdam's tech ecosystem has witnessed a surge in research, innovation, and investment in areas addressing the areas of climate and food. These industries are gaining traction, with startups making significant contributions to technological advancements in these fields.
Fostering innovation for the future
Amsterdam's tech success extends beyond funding and industry focus. The city was recently ranked at the top of fDi's 2023 European Cities of the Future thanks to a connected and open business environment and emphasis on quality of life. An established startup ecosystem in a compact city means that newcomers and fledgling entrepreneurs can easily access an experienced network of professionals and expertise. Founders and professionals are in close proximity to co-working spaces, incubators, and events throughout the Dutch capital, making an ideal place for great ideas to take off.
