A top growth engine
Dealroom has launched a report in partnership with real estate and investment firm CBRE focusing on the economic impact of startups in the Netherlands. Techleap.nl, which was previously known as StartupDelta, also provided support and the new version builds on an earlier edition released with StartupAmsterdam.
According to the report, startups are the Netherlands’ top job growth engine and are expanding faster than any other individual sector, emphasising the impact of tech on the country’s economy.
Homegrown tech companies are succeeding
The report states the Netherlands is home to 4,311 home-grown tech companies, ranging from young startups to established outfits like Adyen and Takeaway.com. These businesses are responsible for 108,000 jobs, around a third of which are in Amsterdam.
Additionally, the report revealed that Dutch startups have created €44 billion in value since 2013 and only 19% are backed by venture capital. However, these companies scale three times faster than those lacking venture capital and startups with €1 million or more in funding need only five years to reach 40 employees.
Stable growth and job creation
Though startups are often considered risky, the report explains they create stable job growth. In fact, 81% of the homegrown businesses examined in the report saw an increase in the number of jobs while only 15% saw a drop. Nonetheless, major startup successes are required to attract venture capital and the Netherlands is only producing an average of one unicorn (a company valued at over $1 billion) a year.
Investing at scale to ensure future success
Currently, 55% of Dutch-born startups have 10 employees or less. Citing that the success of these companies hinges on the availability of education, capital, talent and experience, the report recommends investing at scale to ensure the country continues performing well.
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