The Netherlands stands out as a significant player in the European startup ecosystem, despite the EU’s overall struggles to compete with the US in nurturing billion-dollar companies. A recent report by PwC highlights the stark contrast between the two regions.
Since 2013, over 3,000 companies worldwide have achieved unicorn status, collectively valued at $27 trillion. The US dominates this landscape, accounting for 55% of unicorns and 75% of their total valuation. In comparison, the EU has produced only 9% of these startups and generated a mere 4% of the global unicorn value.
Netherlands‘ Unicorn Performance
Within this challenging environment, the Netherlands has emerged as the fourth-largest unicorn hub in the EU, producing 32 unicorns, 72% of which remain active. Most of these companies were established between 2018 and 2022, reflecting global trends. Notable Dutch unicorns include Ayden, Bird, Bunq, Booking.com, and Picnic.
Amsterdam hosts 7% of all EU unicorns, and the Netherlands has successfully attracted unicorns from other regions, with five billion-dollar startups relocating to the country. Only one unicorn has departed for the US. In contrast, 64 unicorns have left the EU (excluding the Netherlands), while just 10 startups have entered from outside.
Challenges Facing the EU
Despite these successes, the Netherlands and the EU face significant challenges in fostering high-growth companies. The US maintains a substantial lead in venture capital investment, with 0.7% of GDP compared to the EU’s 0.2%. Regulatory fragmentation and market size also hinder the EU’s ability to compete.
To close the unicorn gap, PwC suggests that the EU increase venture capital investment, streamline regulations, and promote a more integrated single market. The upcoming TNW Conference, scheduled for June 19-20 in Amsterdam, will address these issues within the tech ecosystem.
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