Amsterdam’s ecosystem continues moving ahead

Last year, Startup Genome’s annual Global Startup Ecosystem Report ranked Amsterdam 15th worldwide. With a jump to 12th position in 2020, the city continues its upward trajectory – having moved up seven positions since 2017.

There are additional numbers the city’s tech community can celebrate as well: Amsterdam placed #3 as startup ecosystem in Europe – after London and Stockholm and before Paris and Berlin.

A community connected to the world – and itself

The Global Startup Ecosystem Report GSER 2020: The New Normal for the Global Startup Economy and the Impact of COVID-19 praised Amsterdam’s excellent and award-winning logistical connections with the rest of the world. The report also highlighted the local connections between businesses, investors and universities, which are strengthened by the large number of community meet-ups.

Also, the city’s access to talent (and programmers in particular) and capital were mentioned as plus points. In addition, payments company Adyen’s successful entry into the stock market in 2018 was described as a local boost to the ecosystem. However, the report also gave a reason why the city did not rate even higher: a relative lack of biotech patents.

Using tech to revive economic growth

Startup Genome is a respected American research institute based in Silicon Valley – the ecosystem that placed first worldwide. The organisation shared their report on 25 June 2020 during the Amsterdam-based The Next Web Couch Conference: Ecosystems.

Focussed on how governments can support and leverage tech ecosystems to renew economic growth, the online gathering brought together city policy makers, business leaders, investors and startup founders.

The science of defining startup success

The report primarily addresses a single question – “In which ecosystems will an early-stage startup have the best chance of building global success?” – while using entrepreneur Steve Blank's definition of a startup, which describes this type of company as a “temporary organisation in search of a repeatable and scalable business model”.

Meanwhile, Startup Genome defines an ecosystem as “a shared pool of resources, generally located within a 60-mile (100-kilometer) radius around a centre point in a given region, with a few exceptions based on local reality.”

By using their Ecosystem Success Factor Model as their primary analytical tool, the organisation measures different dimensions of what supports the performance of local startups, including actual performance measurements as well as success factors such as funding, connectedness and market reach.

Read more startup news from around Amsterdam.