Renowned for fostering innovation and entrepreneurship, the Netherlands is a prominent startup hub. The country is ranked fourth in Europe for startup value creation, with its collaborative ecosystem filled with globally competitive talent pools, numerous incubators, and a thriving tech sector. This supportive environment provides many benefits for foreign entrepreneurs aiming for company establishment in the Netherlands.
Noteworthy startups from the Netherlands include Booking.com, Adyen and ASML, specializing in fintech, healthcare and semiconductor manufacturing, respectively.
Although there are challenges in scaling up, the Dutch ecosystem shows promise for growth through supporting university spin-offs and fostering an internationally embedded VC (venture capital) market. Meanwhile, the Dutch startup visa program continues to attract international talents by facilitating the establishment of innovative startups.
Benefits of Establishing a Startup in the Netherlands
Considering the Netherlands’ pro-business environment and strategic location, starting a business there offers numerous advantages for both local and foreign entrepreneurs.
Businesses in the Netherlands are promised prime access to the European market. The Netherlands serves as an excellent base in the Eurodelta region and is the second-largest digital data hub in the continent. The Netherlands’ strategic location provides primary access to the UK, Belgian and German markets.
The Netherlands ensures smooth business operations with reliable airports, seaports, roads, rail and telecommunication networks. The Port of Rotterdam, a global hub for international trade and a leader in supply chain innovations, further boosts the competitive advantage.
The country’s large working population, high education standards, productivity, digital readiness and pragmatic labor laws are another great benefit. The country also boasts an exceptional quality of life, ranking as the fifth happiest country in the world, with over 90 percent of the population speaking English, making it ideal for foreign entrepreneurs who prefer to avoid language barriers.
The Dutch economy is also stable and business-friendly, offering a conducive environment for startups to thrive. Moreover, the Netherlands is highly supportive in terms of legal and tax structures. The country is also politically stable and ranks sixth in the government effectiveness index.
Dutch Government’s Support
To nurture the growth of innovative businesses in the Netherlands, the government offers a range of incentives to support startups. Incentives offered include tax breaks, grants and other forms of financial support.
One key incentive is early-stage funding. This funding helps startups create and verify commercial concepts, identify the appropriate market and develop the necessary licenses.
Another program is the Innovation Credit, which aims to support the developmental stage of new products, processes or services. This credit provides a loan for innovative ideas in the technical or clinical field, supporting startups that have yet to start generating revenue in getting a project up and running.
Additionally, the Dutch government offers the WBSO (Wet Bevordering Speur en Ontwikkelingswerk) scheme, which reduces the financial burden of research and development (R&D) by providing tax credits for R&D staff wages or additional tax credits for local and foreign entrepreneurs. This scheme also applies to scale-ups, further supporting the growth of innovative businesses in the Netherlands.
These incentives, along with others such as the Seed Business Angel Funds and the Dutch Good Growth Fund, demonstrate the Dutch government’s commitment to fostering a thriving startup ecosystem in the Netherlands.
Netherlands Startup Visa Program
The Netherlands offers a Startup Visa program to attract foreign entrepreneurs, allowing them to start and run a business in the country. To be eligible, applicants must have an innovative idea, sufficient funds to live in the Netherlands for a year and an experienced facilitator who provides support in operational management, marketing, research and investment acquisition for setting up an innovative business.
The application process involves registering with the Immigration and Naturalisation Service (IND) and paying an application fee. Once approved, the visa allows non-EU/EEA/Swiss entrepreneurs to reside in the Netherlands for one year to start and run their business.
Successful Startups from the Netherlands
Some noteworthy Dutch startups exemplify the Netherlands’ innovative spirit and entrepreneurial drive:
TestGorilla, founded in 2019, aims to revolutionize the recruitment process by enabling organisations to use skills assessments as soon as candidates apply for open roles. With over 5,000 customers in less than two years, TestGorilla secured a €70M Series A investment in June 2022, highlighting its growth potential.
BOTS is an innovative trading platform that allows retail investors to use trading bots for cryptocurrency trading. Founded in 2021, BOTS closed a €13M Series A round and plans to expand into trading currencies and stocks.
Lepaya focuses on employee development by offering tailored training programs. With a recent €40M Series B funding round, it aims to expand its operations to Germany, the Nordics and the UK.
Lightyear, founded in 2016, aims to develop the world’s first solar car and has raised over €100M in funding. These startups showcase the diversity and innovation in the Dutch startup scene, solidifying the country’s reputation as a hub for entrepreneurial activity.
Reflecting the successes of such startups, businesses looking to establish and flourish in the Netherlands can rely on Unusual Companies. Unusual Companies provides a range of services, including company establishment solutions and Dutch startup visa consultancy as well as digital branding, web and software development, social media management, guiding entrepreneurs and businesses to realize their visions and thrive.
