Strengthening the Dutch startup and scaleup ecosystem

Relevant role of startups

This question from EZ is part of research by TNO Vector into closing the R&D gap: what needs to happen to get investments in R&D to 3% of our GDP by 2030? Innovative young companies play an important role in this ambition. Findings from the TNO study on the position of startups and scaleups were also used in the Wennink report ‘The route to future prosperity’, presented at the end of 2025.

Deeptech lags behind

There are around 10,000 startups in our country, of which about 1,400 are active as so-called deeptech companies. These focus on developing and marketing complex technologies aimed at major societal challenges and transitions. Together, the startups account for nearly 150,000 jobs. Compared to the European average, our country performs well: per capita there are 2.5 times as many startups here. On the other hand, we lag behind countries such as the UK and Germany when it comes to deeptech spin-offs.

Too little growth

Compared to our eastern neighbours, we achieve a lower percentage of scaleup conversion . In Germany, this is 32%, in the US even 54%, while here 21.5% of startups successfully grow further. Is this worrying?

‘In the Netherlands, relatively more funding is raised in the early phase compared to those countries. Furthermore, there is more growth capital available in those countries, including venture capital. The average funding for startups in our country is a quarter of a million euros, while in Germany it is more than double that. It also takes on average two years longer here than in the US and one year longer than the European average to reach the next funding round.’

Improving the ecosystem

In recent years, there have been many initiatives to improve the climate for startups and scaleups. For example, TNO works closely with TechLeap and InvestNL. According to the researchers, more is needed to improve the ecosystem around these emerging companies. For this, TNO Vector has made concrete proposals in three areas: capital, talent, and tech position.

‘We did this from the idea of the founder journey,’ says Sabine. ‘This covers the entire path from business plan, knowledge development, through the first phase to scaling up to a leading company. Support from the ecosystem is different in various phases between start and growth; in the early phase, it is difficult to attract talent due to organisational uncertainty, later you have to compete with salaries of established players , and finally, key people from the early phase may leave again. . This demands a lot from the entrepreneur and the ecosystem.’

Long-term, high-risk investments

‘The development of breakthrough technologies takes years and therefore requires long-term and often large-scale and high-risk investments,’ colleague Martijn adds. ‘Due to the high risk profile, long payback period, and lack of track record, it is difficult to secure funding for further growth. In the Netherlands, there is capital in the early phase. But after that, we lack growth capital to scale up. Again, this is especially a problem for deeptech.’

Role of government

To mobilise more venture capital, the researchers mention the importance of covering residual risks. ‘Public capital and government intervention are not a replacement for private investments, but rather catalysts that make them possible.’ This can be done through procurement and tendering and as a launching customer, targeted guarantees, concessional loans, and performance-based subsidies. Tax measures such as paying out R&D credits under certain conditions for young innovative companies that are loss-making and fiscally stimulating private investors are also possibilities. Furthermore, it is important to create a climate with the right boundary conditions and infrastructure.

Further research into funding

A promising example is the scaleup FSO Instruments, which, as a joint venture of Demcon & VDL, has better access to facilities for building equipment for laser satellite communication that are inaccessible to most entrepreneurs. The market thus creates opportunities itself to make new business models successful. Nevertheless, the government still has a role to play here. ‘Initiatives like these deserve attention. We are talking about companies that can grow into market leaders in Europe and beyond. That is why TNO Vector is conducting further research into forms of startup growth to help such innovative companies move forward. We want to provide both the government and investors with knowledge that encourages them to take a larger role. We need to look more strategically at how the Netherlands earns its money.’