After a worldwide dip throughout the begin of the pandemic, Europe’s startup scene is buzzing but once more. 2021 noticed a record-breaking €100bn being injected into European startups, and 100 new unicorns being born throughout sectors.
And with Brexit coming into impact, 2021 additionally noticed a shake-up of European titans, with London probably shedding maintain of its startup-ecosystem crown.
One area that may snatch mentioned crown is Benelux — the Western European area comprising Belgium, the Netherlands, and Luxembourg. Cities like Amsterdam and Brussels haven’t traditionally obtained the identical stage of investor curiosity or press as London, Paris, and Berlin, however they’re rapidly carving out their place throughout fintech, local weather tech, mobility, and extra.
In actual fact, the X-Europe program-led by TNW and 4 different companions) is now seeking to increase the area’s tech capabilities by connecting 150 startups with funding, partnerships, expertise, and alternatives throughout Europe.
This implies extra alternatives for would-be entrepreneurs, buyers, and tech expertise. If you happen to’re new to the area, right here’s what the small however mighty Benelux has to supply Europe’s startup scene.
The Netherlands: The subsequent tech large of Europe?
Of the three Benelux international locations, the Netherlands is the most important, being dwelling to 17.2 million people. Its main financial hubs are Amsterdam (the tradition and tourism capital), Rotterdam (the financial capital), and The Hague (the executive and royal capital of the Netherlands). Relating to financial energy, the Netherlands leads with a GDP of $913.9bn in 2020.
Because the birthplace of Wi-Fi, Bluetooth, cassettes, DVDs, CDs, and Blu-Ray, the Netherlands has lengthy been thought-about a tech innovation hotspot. It’s since used its excellence in analysis (together with the assist of huge multinationals) to create a bustling startup hotspot.
Whereas VCs have been already buzzing concerning the potential of the Dutch startup ecosystem — since Brexit, tech corporations giant and small have ditched London for the silicon canals of Amsterdam. This has surged the variety of startups and expertise to new ranges, bringing with it a sudden tech growth.
After we take a look at the highest offers from 2019-2020 within the Benelux area, the highest two by far have been Dutch corporations, Messagebird (a cloud communications startup-turned-unicorn) and Picnic (one of many largest European gamers within the on-line grocery supply house), which each bagged $200m funding rounds. They’ve since left these rounds within the mud, having subsequently scored €600m+ mega-rounds since April 2021.
Amsterdam alone has produced more than 12 unicorns since 2012, making it the 4th main unicorn producer in Europe, and town’s ecosystem hit €100bn in worth (€187B in the event you embody Reserving.com). It’s no surprise then that town is ranked because the #3 tech ecosystem in Europe by Dealroom. (It’s additionally dwelling to TNW — sufficient mentioned.)
The Netherlands can be recognized for having a powerful investor scene. Matt Welle, founding father of Mews, says:
The nation is a haven for cloud and funds corporations, so buyers know the panorama properly and aren’t so laser-focused on income in early-stage corporations. Because the market is kind of developed, Dutch VCs are extra assured in valuing potential in advanced expertise.
However the Netherlands isn’t with out its issues. Robust funding throughout sectors means the capital metropolis has but to bag the title: “capital of ____” as London has for fintech and Paris has for AI. Dutch deeptech is one notable sector lagging behind the remainder of Europe by way of funding, regardless of having the very best density of AI startups within the EU.
Nonetheless, relating to entrepreneurship, the Netherlands scores excessive with reference to beginning a enterprise; it’s doable to begin a enterprise right here in just a bit over 3 working days, placing them forward of, not solely the opposite Benelux international locations, but in addition the entire V4 international locations and two out of three Baltic international locations (solely Estonia ranks increased).
Belgium: On the up
The Netherland’s barely smaller cousin, Belgium, is dwelling to 11.58 million people, who’re largely concentrated within the cities of Brussels, Antwerp, and Ghent. Belgium follows the Netherlands with a GDP of $521.9bn.
Whereas the pandemic noticed many sectors shrink and corporations shutter, it supplied a novel alternative for some to interrupt the mould; Belgium, an ecosystem that has traditionally remained out of the highlight, has solely continued to develop because the pandemic, and extra Belgian startups are getting funding.
Based on Dealroom, VC funding within the area grew from €1bn in 2020 to €2.3bn in 2021 — and the primary quarter of 2022 has already seen €515m. Whereas this funding is principally going into healthtech, fintech and power stay within the nation’s top-funded sectors.
Belgium has additionally produced 7 unicorns — with 12 soonicorns sizzling on their heels — together with Ghent-based Deliverect, which allows eating places to get into on-line meals supply. The corporate raised $150m at a $1.4bn+ valuation in January 2022.
Whereas its startup scene could also be smaller than their clog clad neighbor’s, because the capital of the EU, Brussels based mostly startups get pleasure from nearer proximity to decision-makers and lobbying teams, making it an attention-grabbing vacation spot for startups that need to assist form the way forward for their business.
And relating to R&D, Belgium reigns supreme; it’s significantly elevated its GDP spending on analysis and improvement from 2% to 2.82% in 2018, a lot increased than the Netherlands (2.16%) and Luxembourg (1.24%), awarding it the fifth highest R&D expenditure in the EU behind Sweden, Austria, Germany, and Denmark.
Luxembourg: Small however plenty of assist
Luxembourg is by far the smallest Benelux nation — it even made the highest 10 smallest in Europe — with a population of 642k, lots of which dwell within the capital of the identical identify. It trails behind its neighbors by way of GDP with a a lot smaller $73.4bn — however this appears a lot higher if you examine its GDP in opposition to the dimensions of its inhabitants, making Luxembourg the wealthiest EU nation per capita.
Whereas this tiny, rich nation won’t be the primary that involves thoughts when contemplating startup capitals, the usual of residing may be very excessive — the very best on the earth, the truth is — making it enticing not just for founders but in addition tech expertise.
Regardless of its dimension, Luxembourg packs quite a lot of energy and affect throughout the EU being the seat of the European Courtroom of Justice, the European Funding Financial institution, and several other different administrative workplaces of the union.
And whereas the area trails the Netherlands and Belgium for variety of startups (513), unicorns (2), VC funding ($746m), accelerators, and angel buyers, they thrive within the government-backed initiatives division. Ryan Younger, Head of Market at Talkwalker says:
Luxembourg has so many sources for startups! The federal government runs its personal program, sponsoring incubators and offering funding. The nation is filled with different non and for-profit startup help together with kickstart providers, courses, and coworking workplaces.
In the meantime, its tight-knit startup group is proving to be an asset for worldwide entrepreneurs who need to construct connections and scale quick, with out the overwhelming competitors present in bigger tech cities.
Whereas it nonetheless has an extended technique to go, a supportive authorities and wealth promise huge issues for this tiny titan.
Though the three international locations that make up Benelux could have very totally different startup ecosystems, what they’ve in frequent is their quick progress and potential. For buyers, this might imply capturing the subsequent unicorn, earlier than the competitors. For founders, new alternatives and the potential to form the way forward for their business throughout Europe may carry main advantages within the years to return.
The X-Europe program is fostering the expansion of startups within the Benelux area. Comply with this system web site to control the providers they’re offering and the options being superior by the chosen startups, and be part of the upcoming actions.
