On Tuesday, Mollie, the Amsterdam-based payment processing platform, announced raise of €90 million in the Series B funding round. The company is now valued at more than €1 billion, reaching the status of a startup unicorn.
Mollie’s success further establishes the Netherlands as the European hub for tech startups. At the current state, the country is home to 13 unicorns, ranking only behind Germany (30) and the United Kingdom (74). Considering the success that the Dutch startup ecosystem has experienced, a question may arise. What is the secret ingredient that is behind the thriving Dutch startup scene?
According to the recent study by NimbleFins, the Dutch-based startups benefit primarily from the three-country specifics:
1. Established physical and digital infrastructure – The Netherlands is known for its excellent transportation and telecommunications network, which makes doing business faster and easier. On top of that, Dutch are among the European frontrunners in digital infrastructure as the country boasts some of the highest broadband speeds.
2. Welcoming regulatory environment – The government seeks to foster the startup ecosystem through various activities starting from tax incentives and funding programmes to startup visas for non-EU citizens. Particularly, the country provides the so-called “start-up visa” that affords ambitious entrepreneurs one year to launch an innovative business.
3. Highly skilled workforce – The country is home to some of the highest-ranked universities in Europe which provide the job market with a competitive workforce year after year.
On the other hand, access to venture capital is lagging behind other European countries. According to a report by Dealroom, venture capital investing is Achilles heel of the Dutch startup ecosystem. Many promising startups, especially in their early stage, struggle to secure funding. The lack of VC-funded growth may then hamper the scalability of new businesses.
With all its characteristics, the Dutch startup ecosystem provides fertile pasture for new business. The Crunchbase database currently lists over 10,000 Dutch startups. Will any of these follow in the steps of Mollie and become the next startup unicorn? ?
