Amsterdam a hub for developers in Europe
Amsterdam is the third largest city region in Europe for developers, new figures show. The Amsterdam Area boasts a total of 216,800 professional software developers, with the highest number – 360,000 developers – living in London, followed by Paris with 270,000. In total these three cities are home to around 15 per cent of Europe’s developers. The ranking was shown in the State of European Tech Report 2018, which was drawn up on behalf of the Atomico investment fund. Five thousand people were interviewed to help compile the report, which was unveiled at the Slush tech conference in Helsinki.
Amsterdam firms deliver two of the biggest European IPOs
The report also highlights how 2018 has been a truly remarkable and a record-breaking year for Amsterdam's tech industry, as the city’s Adyen delivered the second largest European IPO with a value of $7.8 billion dollars based on market capitalisation at exit, while Elastic was fifth with $2.5 billion. These success stories may contribute to the fact that Amsterdam was the top city where founders in the Benelux would want to start a company, with 48 per cent of the vote. In general, the Netherlands’ rapidly expanding tech sector and attractiveness to founders might suggest why the report found that 46 per cent of Dutch vacancies for software engineers are difficult to fill – the highest percentage in Europe – as tech entrepreneurs compete to attract the best talent.
The Netherlands’ growing tech community
Figures also show that the Netherlands has one of the most active tech communities in Europe: per 1,000 inhabitants, there are 4.8 active members of tech-related meetup groups, the third largest in Europe. Amsterdam’s number of tech-related meetup attendees is also one of the largest in Europe, more than tripling in four years from 24,119 in 2014 to 84,647 in 2018. The Hague is ranked in fourth place when it comes to fastest-growing tech communities in Europe, with 121 per cent growth in the number of participants who attend tech-related meetup events.
Tom Wehmeier, the partner and head of research at Atomico who wrote the State of European Tech Report 2018, says of the Dutch tech sector: “It is possible to have one IPO of several billion dollars on the card, but two IPOs in the same year? That is special. These developments confirm the solid foundations of the Dutch tech ecosystem. Moreover, this report shows that the competition for tech talent in the Netherlands is becoming increasingly intense. Tech entrepreneurs must compete with both American tech giants and local startups. That would be a possible explanation for the professional development in Amsterdam and explain why the city now offers the third highest salaries in Europe after London and Berlin.”
Europe’s tech ecosystem grows exponentially
The report shows that the European tech ecosystem is growing five times faster than the rest of the continent’s economy. The tech sector will also likely see a record level of capital investment in 2018, with funding expecting to hit $23 billion, comfortably exceeding the $19.6 billion invested in 2017 and more than four times the levels of investment in 2013. The report found that diversity was a problem in the European tech sector, with almost half of women interviewed reporting that they have experienced discrimination in their professional lives, and data showing that 93% of all funds raised by European VC-backed companies went to all-male founding teams.