A new report by TechLeap reveals that over two-thirds (67%) of Dutch AI startups struggle to attract new investment. According to the Dutch private-public organization that helps startups, Dutch AI companies struggle to grow due to stiff market access and a lack of talented employees. Given the social and economic impact these companies can make, the report advocates for creating the proper framework to help them grow.
About 750 AI companies are active in the Netherlands, representing 10% of the whole startup market. Most Dutch AI companies focus more on developing AI-based software solutions and less on AI hardware or infrastructure. Most companies are still in the early stages, where product development and alignment with the market are key.
Targeting low investments
According to the paper, three-quarters (77%) are younger than five years old, and almost half (45%) are looking for investments between €250,000 and €2 million. While the AI trend is in full swing, only 4% of AI startups currently target more than €10 million in investment. To this extent, the Netherlands bucks the trend of neighboring countries, where AI companies target higher tickets.
Techleap suggests that investors could improve their decision-making by acquiring a more technical grasp of the distinctions among AI solutions. Furthermore, the organization proposes that public investments in AI could be optimized by accelerating procedures or pooling government resources to enable more substantial funding.
Collaborating with tech entrepreneurs on AI policy
Unlike the Netherlands, countries like the United Kingdom have fostered strong partnerships between the government and tech entrepreneurs in shaping AI policy. As per TechLeap, the Dutch government, however, should prioritize strengthening these connections to create more effective policies. By involving tech entrepreneurs earlier in the policy-making process, the Netherlands can ensure that the resulting regulations better align with industry practices.
“It is clear that higher ambition and more action is needed if we want to be leaders in AI entrepreneurship,” stated Maxime Lubbers, AI expert at Techleap. “The innovative power of AI companies is unprecedented and offers enormous economic and social value for the Netherlands, as shown by examples such as Weaviate and Cradle. Now is the time for leaders and decision-makers within large and small businesses and governments to embrace AI as a strategic opportunity. Everyone has a role in working together for faster AI adoption in the Netherlands.”
Struggling market access and lack of talent
Beyond financial support, Dutch AI startups frequently cite the need for greater familiarity with AI applications across various sectors (56%) and easier market entry for smaller players (52%) as significant challenges. A primary concern among entrepreneurs is access to shared facilities for research, testing, and prototyping. Moreover, Dutch AI companies consistently list sufficient datasets and computing power as top priorities.
Beyond financial support, Dutch AI startups frequently cite the need for greater familiarity with AI applications across various sectors (56%) and easier market entry for smaller players (52%) as significant challenges. A primary concern among entrepreneurs is access to shared facilities for research, testing, and prototyping. Moreover, Dutch AI companies consistently list sufficient datasets and computing power as top priorities.
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