Q1 in Dutch startup land: investments stagnate significantly

Startups in the Netherlands saw a whopping 59% drop in investments in the first quarter of 2025, totaling about €460 million, compared to more than €1 billion in the same period last year. This marks a fifth consecutive quarter in which the number of deals fell, from 89 to 79. Extensive investment rounds (more than €15 million) decreased significantly. This is according to the Quarterly Startup Report, a quarterly data analysis by Dealroom.co, Golden Egg Check, KPMG, the Regional Development Companies (ROMs), Dutch Association of Participation Companies (NVP), Dutch Startup Association (dSa), and Techleap. Despite globally uncertain economic conditions, biotech companies such as Leyden Labs and Alesta Therapeutics have secured significant investments.

Consequences of reduced investment

The Dutch start-up sector is under pressure as investments declined significantly in the first quarter 2025. This occurred despite major funding rounds from biotech companies such as Leyden Labs and Alesta Therapeutics, which managed to raise €70 million and €65 million, respectively. Dutch startups are estimated to have raised about €460 million, representing a steep 59% decline from the first quarter of 2024, in which more than one billion euros were invested. That decline calls into question the vitality of the Dutch startup climate and the country's international competitiveness.

Downward trend in European rankings

This downward trend has sunk the Netherlands three places to a shared seventh position in the European rankings of countries with the most startup investments. This is because countries such as Spain, Sweden, and Ireland managed to achieve larger funding rounds. The lack of investment growth is largely attributed to political instability and the ongoing trade war, although further factors have not been ruled out. However, European markets remain stable, underscoring the relevance of strategic investment in these times.

“Time to wake up in the Netherlands as well,” says Lucien Burm of Dutch Startup Association. “We are not hanging on to the alarm bell yet, but to stand still is to go backwards. Not only did we lose position globally in Europe, but within Europe, the Netherlands is now losing importance. With the geopolitical and economic turmoil of the moment, instead of reactive measures, broad and deep investment in establishment and investment climate is the recipe.”

A strong foundation

Thomas Mensink, CEO of Golden Egg Check, also sees positive developments. “It is interesting to see that when the world seems to look different every day, startups in the Netherlands have been raising about the same amount of capital for four quarters in a row. So there seems to be a strong foundation, and that is positive. At the same time, I am concerned about the 'opportunity costs'; if Dutch startups have more trouble raising growth funding on acceptable terms, it will become increasingly difficult for them to play a significant role internationally.”

The decline in investment took place against the backdrop of changing market conditions. Interestingly, the more significant investment rounds, or Series B+ rounds, were significantly less frequent: the number dropped from 14 in the first quarter of 2024 to just seven in 2025.

The political turmoil since Donald Trump took office in the White House and sparked a trade war could explain investors' reluctance. At the same time, precisely American startups managed to raise a record $100 billion in the first quarter of this year—their strongest quarter since 2021.

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