The Netherlands is among the top European countries in entrepreneurship and in the number of startups per capita, Techleap.nl concludes. But only a small proportion of these, unlike startups abroad, manage to grow successfully. And it’s precisely those successful scale-ups that are important for economic growth and the ability to provide our own solutions to major societal challenges. "What’s lacking is ambition and urgency in the Netherlands", states Constantijn van Oranje-Nassau (Special Envoy at TechLeap) in conversation with Bouke Marsman, Managing Partner of Marktlink Capital. "If we invest more in the Dutch startup ecosystem, it could generate up to an additional €400 billion for the Dutch treasury."
Techleap is a non-profit organisation dedicated to developing and accelerating a healthy startup and scale-up ecosystem in the Netherlands. Techleap helps Dutch technology companies with a tech community providing knowledge, content and valuable connections. The Netherlands has more than ten thousand startups.
Bouke: Constantijn, since 2016 you have been the standard bearer of Techleap, formerly Startup Delta. It acts as a centre of expertise and contributes with its programmes to help startups and scale-ups gain faster access to knowledge, capital and connections. What have you achieved in recent years?
Constantijn: "When we started, one of our goals was to make the Netherlands the strongest ecosystem for young companies in Europe. We succeeded in doing that. The biggest gap we closed was capital. There is now much more venture capital available in the Netherlands. In 2019, Dutch tech startups raised about €750 million in venture capital; by 2021, that figure had grown to €5.6 billion. This is a great development, to which we have contributed by connecting startups with investors faster."
The Netherlands has relatively many startups. Why do we have proportionally fewer scale-ups compared to other countries?
"This is quite simple: Dutch startups do not raise enough capital; too little is invested in the scale-up phase. As a result, most startups do not get the chance to scale up. In many other countries, there is more ambition: scale up, conquer markets and internationalise. In the Netherlands, we tend to think too small and focus on break-even as a goal in itself. That makes startups less attractive for investors. In the United States, angel investors are much more common. That is not yet fully part of the Dutch ecosystem. Another bottleneck is attracting talent. Especially for startups, which often cannot offer top salaries, attracting the right talent remains a challenge."
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Why is it so important to invest in startups?
"Startups are essential for solving major societal challenges, such as healthcare, climate and energy. The Dutch startup ecosystem has enormous growth potential. If we invest more now, as outlined in our State of Dutch Tech 2023 report, this could generate €250 to €400 billion for the Dutch treasury by 2030 and create between 165,000 and 250,000 additional jobs. This is supported by research conducted together with McKinsey. It also reduces dependence on foreign companies, data and services."
Until recently, investing in companies through private equity or venture capital was virtually impossible for private investors. Marktlink Capital now provides access to these funds. What are your thoughts?
"I think this is a very positive development. It allows more investors and entrepreneurs to contribute to the Dutch startup ecosystem. In addition to capital, experienced entrepreneurs can contribute knowledge and expertise, so-called smart capital. That can give companies a competitive advantage. At the same time, investors should be well informed. Risk and return must always be balanced. Choosing a well-diversified fund, such as those offered by Marktlink Capital, is important."
Techleap’s mandate has been extended by three years. What are the plans for this next phase?
"Over the past year, we have focused on building a strong community of leading tech founders through the Bold programme. We want to continue doing that. While our ecosystem is among the strongest in Europe, it still does not compare to Silicon Valley, London or Boston. There is room for further professionalisation. We need to create an environment where companies can attract capital and talent, grow quickly and internationalise. The Dutch Growth Fund, with €20 billion available between 2021 and 2025, is a good start, but not sufficient. We need more effective policies, stronger ambition and a greater focus on high-potential companies."
What are your personal ambitions with Techleap?
"The Dutch startup ecosystem has enormous untapped potential. Startups are the drivers of innovation. My ambition is to help create the right conditions for fast growth, especially in attracting talent and increasing the availability of capital."
Finally, what advice would you give startups that want to raise more capital?
"If you have the ambition to grow fast and internationalise, choose an investor that matches that ambition. Venture capital can help you professionalise and push beyond your comfort zone. With venture capital, founders often retain significant control. The choices you make today will determine your opportunities tomorrow."
*This is based on research (Building a world-class Dutch start-up ecosystem) conducted together with McKinsey.
