Amsterdam Delta has emerged the top startup ecosystem in the EU | Image Credit: Deposit Photos
Amsterdam Delta has emerged as the major startup ecosystem in the European Union. The 2022 Global Startup Ecosystem Report (GSER) released by Startup Genome shows that the Netherlands is now home to Europe’s biggest tech companies and startups. The GSER also shows how the US is not the only major hub for the startup ecosystem.
When Startup Genome first published its Global Startup Ecosystem Report in 2012, six out of the top 10 hubs were in the United States. In the last ten years, the startup ecosystem has grown to 1,227 unicorns and has seen $1.65T in funding. “Despite the early shadow it cast on startups, COVID-19 ultimately boosted the sector by accelerating digitisation,” the report explains.
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Amsterdam Delta tops for startup ecosystem in the EU
On the GSER ranking system, Amsterdam Delta has emerged as the top startup ecosystem in the European Union. It is, however, ranked only 14th in the global startup ecosystem ranking. The ranking is based on categories including performance, funding, connectedness, market reach, knowledge, and talent and experience.
In comparison to top ranked startup ecosystems, the GSER shows that Amsterdam Delta is lagging competition in knowledge. The ecosystem does score a full 10 points in connectedness, which is a testament to the work done by startups, startup founders, and organisations like Techleap.nl to turn the Dutch capital into a place where new startups take shape.
The total enterprise value of tech companies created in the Amsterdam region increased from $10 billion in 2010 to $100 billion in the first quarter of 2021, according to Dealroom. Despite being a small city by population, Amsterdam shows outsized influence in building impactful startups.
Accelerators and Cleantech lead the way in Amsterdam
The success of Amsterdam Delta becoming the top startup ecosystem in the European Union can be owed to its open, dynamic, and community minded approach. Rockstart and Startupbootcamp, two of Europe’s best-performing accelerators, were founded in Amsterdam. ScaleNL has been helping Dutch tech entrepreneurs scale to the US “via a network, platform, programmes, and funding.”
Techleap.nl is another organisation leading the drive to help Dutch startups scale and become global organisations. Another shining star in the Dutch ecosystem has been cleantech startups. Picnic raised €600M from the Bill & Melinda Gates Foundation while urban e-bike company Vanmoof raised a $128M Series C in September 2021.
Europe sees year of all-time highs in 2021
The 2022 Global Startup Ecosystem Report (GSER) released by Startup Genome reveals that 2021 was a year of all-time highs across categories for Europe. The amount of capital invested in startups, deal volumes, and exits all reached their all-time highs.
The report also shows that Europe saw over 10,000 venture deals in 2021, equivalent to €103B, and 2,900 deals were first-time venture financings and totalled €9.9B. In 2021, European VC funding was 128 per cent higher than previous year and the report establishes that growth was seen across every stage. Early-stage funding deals increased by 47 per cent from 2020 to 2021.
In 2021, the GSER shows that both Germany and the Netherlands experienced more than 200 per cent year-over-year growth. Spain performed even better by growing more than 400 per cent. However, most European startups and scaleups are largely concentrated in the UK, Germany, and France.
“The Netherlands is home to Europe’s biggest tech companies and world-class startups. A great part of the ecosystem’s success is about the community and its leaders being willing to pass on their knowledge and capital gains to the next generation,” says Constantijn van Oranje, Envoy at Techleap.nl.
The report further shows that the Amsterdam Delta is ahead of Paris, Berlin, and Stockholm in the European Union. Berlin was the fastest growing European startup ecosystem by moving up six places from last year. The German capital has now produced 14 unicorns. Helsinki had another strong showing by rising 20 places from last year.
Rotterdam is an entrepreneurial hotbed
If 2021 was any indicator then it is clear that Rotterdam is the hottest destination for startups in the Netherlands. The second-largest city in the Netherlands, also nicknamed “gateway to Europe”, is described as an “entrepreneurial hotbed of 23 municipalities” by Startup Genome.
The report reveals that the ecosystem now employs 25,000 people, which is one fifth of all the startup jobs in the Netherlands. “With the support of a variety of programmes, initiatives, and organisations, Rotterdam’s startup scene is driving a transition toward a future-proof economy,” the report explains.
Stijn Koster, Vice President Hosting Services at Ubisoft and founder of i3D.net, says, “The city of Rotterdam is internationally well positioned and connects directly to all major internet hubs in Europe through various sea and land cables,” he says. “Within the city, a high diversity of fibre and wireless connectivity allows us to work from home, the office or anywhere else. Perfect digital connectivity is an essential condition for a hosting company like i3D.net to be able to operate successfully.”
Rotterdam has become home to innovation hubs, coworking spaces, and additional startup support services. Startups also like the city for its size, which is large enough to test and validate ideas at scale yet small enough to minimise the distance to their consumers.
The GSER shows that Rotterdam is becoming a model for a future-proof economy, which is digital, circular, carbon-neutral, and diverse. With its spirit of “make it happen” and public-private partnership like Up!Rotterdam, the city known as “Europe’s gateway to the world” is setting the bar high for other startup ecosystems.
Global Startup Ecosystem Report: what you need to know
The Global Startup Ecosystem Report (GSER) 2022 is an annual report analysing the changing landscape of startups around the world. The report primarily looks at startups through the lens of tech ecosystems they belong to and the report highlights how Netherlands is becoming a disruptor in the European Union.
The report, however, finds that the top ecosystems remain the same as earlier. Silicon Valley tops the list followed by New York City and London tied at second place. They are followed by Boston at fourth while Beijing has slipped a place to take the fifth spot.
Seoul has entered the global top 10 ecosystems for the first time while China’s ecosystems have declined in the rankings. “Tech startups don’t just provide tools for digital transformation; they also embody it. Software firms have led the dispersion of talent around the globe. Startup ecosystems attract people from everywhere but also enable their departure for other cities,” says JF Gauthier, Founder and CEO of Startup Genome.
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