Industry Insights
Investment Industry in Tech Insights EU-Netherlands
The Netherlands – Investment at its finest
A highly educated workforce and world-class infrastructure make the Netherlands attractive for technology investors. Technology-driven entrepreneurship is a natural development in Dutch companies due to the long tradition of collaboration and innovation. The Netherlands is recognised as a global technology hub, attracting investors from across the globe. The Netherlands is also the home of some of the world’s most innovative tech companies, including Philips, TomTom and Booking.com. It is also a base for leading research universities, such as the Delft University of Technology and the University of Amsterdam, which provide a strong talent pool for tech start-ups.
Consequently, the Dutch entrepreneurship ecosystem has developed rapidly in recent years, with ideas of it becoming an essential pillar for the national economy and a key engine of innovation and value creation (Mckinsey & Company, 2022; Startup Headway, 2023). According to Maxima Consulting, the Netherlands has ranked fifth in the international innovation economy in 2022.
Its technical expertise has increased the demand for technological products and services. Aside from its excellent business climate and multilingual workforce, the Netherlands has a stable economy and a low tax rate. These factors contribute to its open and innovative culture. According to Invest in Holland (2015:2023), it is one of Europe’s most connected countries and is called “the Silicon Valley of embedded systems”. It makes it an ideal place for companies to invest in research and development and to tap into the country’s immense talent pool of engineers. Furthermore, the Netherlands’ vibrant start-up ecosystem provides companies the necessary resources to succeed.
When examining the Dutch tech sector internally, it attracts more international talents than many other industries. However, concerning gender diversity, the Netherlands lags behind its counterparts in the European Union. In order to tackle this disparity, it is crucial for tech companies to enhance their data collection efforts and for investors to implement effective diversity and inclusion policies. Expanding the talent pool is especially pressing since the percentage of challenging-to-fill tech job vacancies in the Netherlands is rising, reaching 59% in 2023, up from 57% in 2020 and 58% in 2021 (Tech Leap, 2023).
Statistics:
Total Transaction Value in the Digital Investment market is projected to be $1,528 million in 2023.
More than €3.75 billion was secured to support the European high-tech ecosystem.
Over the past five years, European tech has delivered over $500 billion in exit value.
The revenue in the Dutch Software market is estimated to amount to 4 billion US dollars in 2028.
Industry Investment Opportunities
- • Digital Applications
- • Sustainable technology.
- • Generative AI.
(EY, 2023; State Of The European Tech, 2023)
Industry
Challenges
- • Talent and diversity gap.
- • EU & Dutch Tech industry’s high level of competition.
- • Dutch start-up stagnation.
- • Lack of Co-investment compared to other markets.
(TechLeap, 2023; TecBridge, 2022; Chambers & Partners, 2022)
AI Investment Initiatives
There has been an increase in investment by the European Union in artificial intelligence companies and businesses that are focused on climate change and other purposeful endeavours. By shifting its focus, the region demonstrates its commitment to leading AI innovation, contributing to a more sustainable future for Europe. Additionally, European governments support AI start-ups and research institutions with financial assistance.
Investing in artificial intelligence can boost economic growth, create jobs, and boost regional employment. In addition, artificial intelligence can help solve many global problems, including climate change. By investing in this field, the European Union will position itself as a world leader, ensuring a sustainable future for its citizens. According to the State of European Technology, European companies will invest more in climate and other purpose-driven industries in 2023.
Under the Horizon Europe programme, the Eurozone intends to invest €180 million in technological breakthroughs. The transition to a digital, sustainable and inclusive future in Europe requires artificial intelligence, robotics, and novel materials (European Commission, 2023). These investments will help fuel Europe’s digital transformation, creating new jobs and opportunities and unlocking the full potential of European citizens. The Horizon Europe program will also help make a more resilient and competitive Europe, enabling the Eurozone to lead in global innovation.
The State of European Technology estimates that European investments will total $50 billion during the first half of 2023. With this initiative, the EU intends to become a global leader in the digital economy by 2027, and it reflects the European Union’s commitment to foster innovation and promote sustainable economic growth.
The European Commission has set a number of goals to achieve this, including developing an AI strategy for Europe, establishing an investment framework for research and development, and ensuring a supportive regulatory environment for developing innovative technologies. They also aim to provide a secure and safe digital environment across the EU and promote digital skills and literacy among citizens. Finally, the EU is committed to protecting citizens’ rights and interests in the digital world.
