Amsterdam: Insight into the dynamic startup ecosystem of the Netherlands

I'm allowed to do this once a year CAS Digital Masterclass organize a startup study tour at the HWZ Zurich University of Applied Sciences in Business Administration. Thanks to these tours, I can get to know international startup hubs, learn from successful entrepreneurs and expand my network.

This year's tour took us to Amsterdam after spending the last few years in Tel Aviv, Stockholm, Tallinn and London were. In addition to Picnic, JustEat Takeaway, Booking.com, Mollie and Adyen, Amsterdam has produced around 20 other tech unicorns. In addition, with the TNW Conference one of the most important tech conferences takes place in Amsterdam.

The Netherlands has a long-standing history of entrepreneurship that is firmly anchored in the country's DNA. This tradition of entrepreneurship dates back to the Netherlands' Golden Age in the 17th century, when the country was a leading maritime power and an important trading center. This seafaring tradition and the associated commercial acumen have created a culture of risk-taking and building innovative business models.

On our tour we heard again and again that Dutch culture is characterized by openness, pragmatism and the willingness to challenge existing conventions. There is a climate in which new ideas and creative solutions are welcome. This challenge-the-status-quo mentality has helped many startups emerge in Amsterdam. Entrepreneurs are encouraged to take risks and find innovative solutions to existing problems. We also heard similar cultural characteristics on our trips to Sweden, Estonia and Israel.

Netherlands: international by design

As in Sweden, Estonia and Israel, the level of education is high and the Dutch, on average, have a much better command of English than the Swiss. This makes it easier for foreign talents to settle in, but of course also for Dutch people to network internationally.

In addition, the geographical location of the Netherlands plays an important role. The country is excellently connected to other important business centers such as London, Paris and Berlin. Amsterdam-Schipol is the third largest airport in the world (by international passenger traffic), which facilitates international trade.

The quality of life in the Netherlands is very high. The bicycle is the preferred means of transport - not only in cities, but also for cross-country journeys. Public transport is very well developed. As with the Tube in London, you can easily buy a ticket by checking in contactlessly with your credit card when you enter the tram or train station.

The limited living space and constantly rising rents counteract the quality of life. Startups with little money may be tempted to set up in a cheaper city due to the high cost of living, and international talent may be put off by the costs. On the other hand, successful startups with their high salaries are of course also partly to blame for the high rents.

Professional startup support from the state and cities

The Dutch government has a strong innovation policy and is actively committed to promoting entrepreneurship and startup initiatives. With Impact City The Hague or Startup Amsterdam Entire municipal departments in the two cities are supporting innovative startups - so successfully that the goals of the first project phase from 2015-19 (access to capital, customers, talent, markets, and a startup-minded environment) can be considered fulfilled. Today, Amsterdam focuses support primarily on startups that solve social, urban and environmental challenges. The aim is to make the city the most social innovation hub in Europe.

The ecosystem is growing up

The high number of tech unicorns, the around 49,000 jobs created by local tech startups and the EUR 1.9 billion. VC funding 2021 is impressive evidence of the maturing ecosystem. When you visit Amsterdam, you immediately notice that the startup scene is much more professional than in Zurich, for example, where business angels still use sleight of hand to unfairly lower the ratings of first-time founders. On the other hand, it must also be clearly stated that the startup ecosystem in the Netherlands is not yet at the same level as Berlin, Tel Aviv or San Francisco.