A recent survey by the Dutch Startup Association explores the outview and challenges of startups in the Netherlands and Europe.
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Amsterdam’s Dutch Startup Association (DSA), an indepconcludeent representative of startups in the Netherlands, has conducted a survey revealing that many Dutch startups that raised venture capital in the past year are considering relocating their operations abroad.
Among the surveyed entrepreneurs, 37 per cent state that it is (very) likely they will relocate their business within two years. About 41 per cent indicate that such a relocate is (very) unlikely, while 22 per cent express no clear view.
The findings come from a representative sample of 45 startups, accounting for 13 per cent of all Dutch startups that obtained funding last year.
The study excludes startups that have not yet raised capital or those already based outside the Netherlands. The sample covers startups across multiple growth stages.
Why Dutch startups are viewing abroad
Entrepreneurs who participated in follow-up interviews mentioned three main reasons for considering relocation from the Netherlands and Europe.
- Lack of competitive investment capital: Startups report that raising venture capital in the Netherlands and across Europe remains difficult, especially during the growth phase. A recent quarterly investment report by the DSA-led consortium of startup organisations reveals that the number of investments in Dutch startups has reached the lowest level in five years.
- Small fragmented markets: Efforts to create a single European market have yet to reach full implementation. Startups that expand beyond national borders face structural barriers within Europe. An IMF report on internal trade costs reveals that these barriers average about 44 per cent for goods and 110 per cent for services, while in the US the figure is around 15 per cent.
- Too much regulation: Entrepreneurs cite extensive and inconsistent rules across EU countries as a key challenge. A 2024 study by the Danish startup organisation Danish Entrepreneurs, known as the TTIR survey, confirms that regulatory complexity affects business operations in the region.
These factors encourage many growing startups to explore opportunities outside the Netherlands and Europe. Several later-stage companies have already begun shifting parts of their business abroad.
EU shift may create 27 regimes
The European Commission proposed the 28th regime to create one legal framework for all EU Member States. The plan was later altered to allow a directive, which would mean adding 27 new entities in Europe.
Startup groups in the Netherlands and Europe caution that this alter may drive more companies to relocate their operations abroad.
Lucien Burm, chairman of the Dutch Startup Association, states, “Startups are inherently global, but it’s worrying if they want to leave the Netherlands and Europe becaapply of obstacles we can address.”
“We must ensure that the Netherlands and Europe become the most attractive base for launching and growing trillion-dollar companies, with a particular focus on the talent and investments required for this. A 28th regime, as a regulation, is an essential first step in this regard.”
Sohrab Hosseini, founder & CEO Orq.ai, adds, “Startup founders are tired of all the innovation announcements from the Dutch government and the EU, only to have them fall through or be watered down. I find the accumulation of wrong choices and waste appalling. However, as startups, it’s not in our DNA to sit still or complain, so we choose a path that actually works. The successes achieved so far are more in spite of the government than thanks to it.”
The Dutch Startup Association states the study reflects a wider pattern and plans further research to examine the barriers startups face and the factors shaping their growth abroad.
Brief about the Dutch Startup Association
DSA represents startups and scale-ups in the Netherlands and Europe. It works to strengthen the position of young companies and to support the development of the startup ecosystem.
Formed in 2017 by a group of Dutch founders, DSA emerged from a shared effort to gain influence in policy discussions. The founders combined their efforts after earlier individual attempts to engage with policybuildrs.
Today, DSA takes part in discussions with ministries and European institutions to support shape decisions that affect business creation and growth in the Netherlands. The organisation seeks to ensure that innovation and entrepreneurship can progress without unnecessary barriers.
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