A European leader through global economic uncertainty
As we enter the second half of the financial year, Amsterdam’s startup ecosystem shows higher value than all other European hubs bar London, according to the latest Dealroom report. Leading the EU, Amsterdam’s combined enterprise value topped that of Paris, Stockholm and Berlin. While startups received less funding than last year, reflecting global economic uncertainty, the total funds raised still represent the second-highest H1 on record for Amsterdam startups. In addition, Amsterdam-based venture capital firms showed record levels of dry powder, i.e. cash or highly liquid marketable securities ready for new investments.
Second-highest H1 on record
Amsterdam-based startups raised an impressive €698 million during the first half of this financial year. This was significantly less than in H1 2022, when Amsterdam investments spiked above the global average to a whopping €2.8 billion. However, Amsterdam’s startup value during H1 2022 still shows a greater resilience to 2022’s economic uncertainties than all other EU hubs. In fact, this opening represents the second-highest total on record for venture capital investment in Amsterdam.
Key sectors for investment
Leading this strong investment, as usual, was Amsterdam’s fintech sector. Backbase became the latest Amsterdam-based fintech unicorn – valued at €2.5 billion – joining the ranks of Bunq and Mollie. Cloud-based payments platform Silverflow is set to follow soon, alongside two non-fintech startups, Pyramid Analytics and Moove, which are also due for unicorn status. The sector in Amsterdam continues to thrive generally, thanks to continuing innovation, international investment and global industry leadership through events such as Money 20/20.
With a total of €189 million, fintech startup investment remained the highest, but by an ever-closing margin. Growth in Amsterdam’s fast-growing health and mobility sectors each roughly doubled, with startup investment at €161 and €129 million, respectively. Substantial funding was also allocated to the education, e-commerce, security and food sectors. Other soon-to-be unicorns are emerging from mobility and other sectors, including media and business intelligence software.
Investing in Amsterdam’s future
Among other promising figures, Amsterdam-based venture capital firms also showed a record level of dry powder at their disposal. The end of H1 already marked €972 million in new funds in 2022 so far. Amsterdam ranked third place across Europe for new venture capital funds, second only to London and Berlin. Meanwhile, Amsterdam startups continue to attract funds from investors worldwide: 90% of venture capital funding came from foreign investors, with 50% from the US alone. Despite global setbacks, the future looks bright for Amsterdam’s startups, in an ecosystem that shows no signs of slowing.
To stay up to date with funding developments and everything else that’s happening in Amsterdam’s startup ecosystem, make sure to bookmark the Amsterdam Startup Map.