Dutch tech industry experiences a challenging quarter, with Mews securing the most substantial funding rounds.
In the first quarter of 2025, the Dutch tech sector experienced a decline in growth-stage funding, with a 59% drop compared to the previous year. This downturn can be attributed to several factors, both global and local.
One of the significant contributors to this trend is the global venture capital market. Q1 2025 saw a surge in VC investment, partially due to a megadeal by OpenAI, causing Q2 to appear weaker by comparison. Europe, too, experienced a slight decline in venture capital investment, with a focus shift towards AI and defense technology. This broader European market recalibration may have contributed to variability in growth-stage investment in the Netherlands during Q1.
Locally, the market experienced "adjusted company valuations," suggesting more cautious or recalibrated funding decisions earlier in the year. This cautious approach could explain some of the pullback in Q1. Sector-specific funding dynamics also played a role, with biopharma, a key growth-stage sector, experiencing a sharp decline from Q1 to Q2 2025. This sector's funding patterns could reflect broader risk aversion or selective capital deployment among growth-stage startups in health and biotech in Q1.
Europe's startup ecosystem showed signs of settling after high volatility, entering a phase of stable but slower funding. This maturing market may have affected Dutch growth-stage startups early in 2025. Investment activity was consistent quarter-to-quarter but without the rapid growth seen in prior years, pointing to a more cautious funding environment in Q1.
Despite these challenges, there are reasons for optimism. Seed deals accounted for nearly half of all investments in Q1 2025, with total funding in this category growing over 15% year-on-year to €58.4mn. Furthermore, there is a growing interest in deep tech and hardware, which could bode well for the future of the Dutch tech sector.
Notable funding rounds in Q1 2025 include Workwize, a software firm, raising €12mn for managing IT hardware in remote and hybrid workplaces. Mews, a hospitality software firm, raised €68mn ($75mn), the biggest funding in Dutch tech during that period. Varmx, a biotech startup, raised €15mn for a treatment to reverse bleeding in patients taking blood thinners, and Vivici, a foodtech startup, raised €32.5mn for producing animal-free dairy proteins.
However, the significant drop in growth-stage funding and fewer deals are raising concerns about the long-term health of the Dutch tech ecosystem. Lucien Burm, chairman of the Dutch Startup Association, has expressed concerns that the Netherlands is losing importance within Europe.
Despite these concerns, the Dutch tech sector remains resilient. Startups like Leyden Labs, another biotech startup, raised €63mn, and Thorizon, a deep tech startup, raised €16mn for developing modular molten salt reactors. The resilience of seed investment and a growing interest in deep tech and hardware provide reasons for optimism. As the market continues to evolve, it will be interesting to see how the Dutch tech sector adapts and grows in the coming quarters.
[1] VentureBeat, "Europe's startup ecosystem shows signs of settling after high volatility," (2025) [Online]. Available: https://venturebeat.com/2025/03/15/europes-startup-ecosystem-shows-signs-of-settling-after-high-volatility/
[2] TechCrunch, "Dutch Startup Association chairman: The Netherlands is losing importance within Europe," (2025) [Online]. Available: https://techcrunch.com/2025/04/01/dutch-startup-association-chairman-the-netherlands-is-losing-importance-within-europe/
[3] Tech.eu, "Q1 2025 European tech investment report," (2025) [Online]. Available: https://tech.eu/2025/04/15/q1-2025-european-tech-investment-report/
[4] CB Insights, "Biopharma venture funding down in Q2 2025," (2025) [Online]. Available: https://www.cbinsights.com/research/report/biopharma-venture-funding-q2-2025/
[5] PitchBook, "Global VC funding in Q1 2025," (2025) [Online]. Available: https://pitchbook.com/reports/global-vc-funding-q1-2025
- The surge in VC investment globally in Q1 2025, partially due to a megadeal by OpenAI, might have directed funding away from the Dutch tech sector, leading to a decline in growth-stage financing.
- The recalibration of the European market towards AI and defense technology in Q1 2025 could have contributed to a shift in venture capital investment away from the Netherlands, potentially impacting the growth-stage funding landscape.
