The picturesque canals, tranquil coffee shops, and winding streets of Amsterdam are renowned for their tourist appeal and bohemian spirit. But in recent years, the Dutch capital has added yet another string to its well-decorated bow — gaining a glowing reputation as a global hub for tech entrepreneurship.
So much so, that 2015 to 2020 saw the city’s tech industry rocket from a value of €10 billion to €73 billion, as new enterprises continued to populate the market. But what’s driving the booming ecosystem of tech startups in Amsterdam? Let’s take a look behind the scenes at four key factors.
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A number of tech giants have headquarters in Amsterdam and have developed the climate and infrastructure for the startups that now walk in their footsteps. Philips, Tesla, Google, and Cisco Systems each have local offices, attracting a diverse pool of industry experts to the city. As a result, many have established themselves and started their own businesses, contributing to the 1.1 tech startups per 1,000 inhabitants in the capital.
What’s more, the growth of many Amsterdam-based unicorns — privately-held startups valued at over $1 billion — has inspired other new companies to base their operations in the city and attempt to replicate the success of groups like TomTom and Booking.com. Most recently, 2021 saw Amsterdam fintech firm bunq add €193m to their funding and gain unicorn status, as financial companies continue to flock to open operations in the Netherlands.
While the presence of huge multinational corporations has considerably developed the climate for Dutch workers in the tech field, there are also extensive job opportunities for those looking to relocate from abroad to start or scale their businesses.
This is because the Netherlands has a large English-speaking population, with the language ingrained in the Dutch corporate culture. According to tech recruitment firm Eursap, the Netherlands is a liberal and multicultural nation, “ideal for candidates from anywhere in the world, no matter your proficiency in speaking Dutch, with English widely used across the country”.
As the capital city, this makes Amsterdam a promising destination for those concerned about moving to a new country, adapting to the culture, and learning the language — in fact, over 90% of Dutch people claim to be able to hold a conversation in English.
The Netherlands is home to some of the fastest broadband speeds in Europe, something that helps to support industry operations for transnationals and local startups alike. One important use of these high-performing speeds is in the AMS-IX, a large data-transport center connecting Europe to the rest of the world. As a result of its impressive foundations for digital innovation, Amsterdam has developed a reputation as a key cyber hub.
The city also boasts a number of other dedicated facilities for tech innovation and research, for example, the Amsterdam Science Park and Startup Village. These developments have earned the city a number of titles, including the status of the “most AI-ready city in the world”, thanks to its array of AI labs and education programs. Posted at the forefront of cutting-edge research and scientific progress, Amsterdam possesses both the knowledge and robust infrastructure to facilitate new breakthroughs in tech and allow startups to flourish.
Fortunately for budding entrepreneurs, the Dutch government also offers a number of benefits to help businesses expand their operations in the country. The Ambitious Entrepreneurship Action Plan is one example that has helped to attract international startups to the Netherlands. The plan offers small and medium-sized enterprises early-stage financial backing, and temporary residence permits for non-EU staff, and has helped to fund the Eurostars technological development projects, to name a few benefits.
Another public initiative, the Startup Box, was established by Dutch governmental bodies to help entrepreneurs identify funding opportunities suitable for their plans. The scheme works to match a business’ individual circumstances to an appropriate financial service that can help them to kick-start their operations in the Netherlands. This has been especially helpful to foreign entrepreneurs attempting to navigate the confusing territory of startup funding when relocating to the country.
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