Amsterdam among the top 20 global startup ecosystems: Startup Genome report
Startup Genome, in collaboration with the Global Entrepreneurship Network, published the Global Startup Ecosystem Report 2021 during London Tech Week. The report provides a comprehensive overview of how regions foster and maintain vibrant startup ecosystems.
Let’s take a look at the evolution of the Dutch startup ecosystem in 2021.
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Amsterdam’s startup ecosystem is worth $ 86 billion
Amsterdam as a startup ecosystem is having an increasing impact. Over the past decade, the overall value of the startup ecosystem has grown rapidly in Amsterdam.
The Startup Genome report reveals that startups founded since 2000 in the city have a combined value of more than $ 86 billion (roughly $ 73.5 billion), compared to just $ 12 billion (roughly $ 10.2 billion). euros) in 2015, the third in Europe.
Large outflows of $ 50 million (around € 42.7 million) or more have also grown at an impressive rate compared to other European hubs, the report says.
Since 2011, the Amsterdam region has experienced an average growth of 58% year-on-year, compared to 29% for London.
Amsterdam ranks n ° 3 in connectivity
According to the report, three cities in Europe are in the top 5 places for connectivity: London, Paris and Amsterdam. The number of billion dollar releases tripled in 2020 in Europe from 3 to 9.
Amsterdam ranks 13th in the Global Startup Ecosystem ranking
In the Global Startup Ecosystem ranking, Amsterdam-Delta ranks 13th globally, one position down from 2020. The ranking is based on six factors: performance, funding, connectivity, market reach, talent, knowledge.
Here is the city score for each metric:
- Performance (ecosystem value, exits, start-up success) – 6
- Funding (access, quality and activity) – 6
- Connectivity (local connectivity, infrastructure) – 9
- Market scope (global leading companies, local reach, commercialization of intellectual property) – 7
- Talent (Tech Talent, Life Sciences Talent, Experience) – 7
Reasons for Amsterdam’s growth
Speaking of the success behind Amsterdam’s growth, the report mentions several factors contributing to the region’s success.
The first of these is the fundamental strengths of the Netherlands as a home base for companies. Centrally located, the Netherlands is home to business-friendly laws, a strong infrastructure and a well-trained workforce. On top of that, over 90 percent of the Dutch population speaks English.
Additionally, international graduates have one year to find work or start a business after graduation, and the government runs an Entrepreneur Visa Program that offers international entrepreneurs a one-year visa to start their business. business.
Additionally, budding startups benefit from the city’s dozens of accelerator and incubator programs, including several focused on female founders and diverse entrepreneurial talents.
“There may be something in Dutch culture that wants to question and redesign things and that cherishes independence,” says Constantijn van Oranje, Envoy for the Ecosystem Hub, Techleap.nl.
Challenges faced by the Amsterdam startup ecosystem
The Startup Genome report mentions that Amsterdam generates more startups per capita than any other European hub (1.10 per 1,000 inhabitants), but venture capital investment per capita is lower than Berlin, London and Stockholm with a pace of slower growth.
Amsterdam’s startup ecosystem relies heavily on local investors, where 54% of the capital comes from national sources, 25% from the rest of Europe and only 21% from the rest of the world.
Series A towers appear to be particularly difficult to find, although the latest data shows startups are more successful at hitting towers after Series A with 28% moving from Series A to B and 25% from Series B to vs.
Techleap.nl Managing Director Maurice van Tilburg also noticed these trends. “Venture capital has become much more available. Still, the tickets remain small and many Dutch software startups prefer to start up, staying under the radar of data analysts and limiting their growth, ”he says. “This is also how many of these great startups are suddenly discovered in a subsequent funding round.”
The Startup Genome report also states that investments in AI and big data sectors accounted for 36% of local transactions since 2016, while fintech startups accounted for 20% of transactions.
Another notable sub-sector that is gaining momentum according to the report is clean technology, which so far has covered 10 percent of deals.
According to Techleap.nl, the Netherlands must improve its tax regime to make it easier for start-ups to attract talent with stock options and promote reinvestment of investor profits.
“Providing additional funding for coding bootcamps, STEM programs and other initiatives to develop the tech workforce will help ensure that startups can find the diverse talent they need to continue to grow.” , states Techleap.nl.
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