The European Arena Where Quality Outweighs Quantity

To understand the Dutch position, a European context is essential. The competition is intense, and each country plays its own game. London dominates with sheer scale (900+ startups, $3.6 billion funding), while Paris operates a state-supported champion model, with Mistral AI as a flagship raising a record €1.7 billion in September 2025 [4, 10]. Germany relies on its industrial strength with B2B giants like Aleph Alpha and DeepL, and Stockholm excels in efficiency with the highest average funding per startup [10].

The Netherlands cannot compete with London in scale or with Paris in state support. Instead, it distinguishes itself with a unique "hub-and-spoke" model, high talent density, and a focus on ethical, applicable AI. With 8% of the European AI talent pool, while representing only 2.8% of the population, the Netherlands boasts an exceptional concentration of knowledge [8].

A Concentrated Flow of Capital

In 2024, €1.2 billion in venture capital was invested in Dutch startups, a significant amount [5]. However, a deeper analysis reveals a concentrated landscape. A large portion of the recent AI investments of nearly €700 million went to a handful of top companies. The recent Series D round of Framer of $100 million in August 2025, which valued the company at $2 billion, is a perfect example [11]. Combined with the rounds for Piano (€111 million) and Cradle (€66.7 million), these top 3 deals accounted for nearly 38% of total AI funding [10].

A notable trend is the strategic role of Dutch corporates. The investment of €1.3 billion by chip machine maker ASML into the French Mistral AI is a sign of growing European awareness to build technological sovereignty and reduce dependence on American tech giants [10]. For Dutch startups, this opens the door to strategic partnerships rather than an exit to the US.

Decentralized Strength Through the Hub-and-Spoke Model

The real strength of the Dutch ecosystem lies in its decentralized structure:

• Amsterdam: The focal point, with 19 of the top 40 AI startups [10]. The city combines a strong network with robust digital infrastructure, such as the Amsterdam Internet Exchange (AMS-IX), one of the largest internet exchanges in the world. This gives data-intensive startups like Weaviate (vector database) a strategic advantage.

• Eindhoven: The hardware engine of the Netherlands. Building on the legacy of Philips and ASML, the region is a breeding ground for deeptech and manufacturing industry AI via the High Tech Campus and the TU/e (EAISI).

• Delft, Utrecht & Groningen: Specialized knowledge centers. Delft excels in quantum computing (QuantWare), Utrecht in life sciences and gaming, and Groningen is highlighted by the new AI Factory with a focus on healthcare and energy.

The Scaling Challenge in Capital, Culture, and Talent

Despite the successes, the late-stage funding gap remains a major challenge. Dutch VCs are cautious with rounds above €50 million, forcing scale-ups to look abroad [4]. This is exacerbated by a cultural difference, as one VC stated, "European VCs want proof before they invest, Silicon Valley VCs invest to get proof" [10].

"What we lack in the Netherlands is flexibility with personnel. Letting someone go is difficult, and we need more flexible reward structures. We have enough capital, but we lack risk capital. As a country, especially in healthcare, we are addicted to subsidies." - Michel Abdel Malek, founder of Delphyr [10].

Yet, there is an emerging counter-movement. A new generation of local, often entrepreneur-led funds like Peak Capital, Slingshot Ventures, and Antler is stepping into the gap that large funds leave. They provide startups like Neople (AI co-workers) and Unravel (AI travel booking) with essential seed capital and mentorship [10].

What This Means for Startups, Founders, and Investors

The numbers and trends paint a clear picture, but the real question is what this means for the players in the ecosystem. For founders, investors and corporates, there are concrete opportunities to elevate the Dutch AI landscape to a higher level. The Stockholm model, where a small ecosystem excels with the highest average funding per startup, offers a blueprint. Focus on quality, specialization, and mutual reinforcement instead of pure scale.

Play on Dutch Strengths as a Founder

Dutch founders have a unique position. The talent density and infrastructure are there, but scaling requires a different approach than in Silicon Valley. The success stories of companies like Framer, Cradle, and Weaviate show a pattern. They build on Dutch strengths and think internationally from day one.

Opt for B2B and deeptech. The numbers don't lie. Enterprise AI & Data attracted €280.6 million, the largest category [10]. Dutch companies excel in practical, business-oriented applications. Think of Neople, which builds AI co-workers for customer service, or MarvelX, which develops workflow automation for insurers. These companies solve real, complex problems in sectors that are willing to pay. That is fundamentally a different strategy than consumer-oriented AI, where competition is fierce and profit margins are low.

Use the infrastructure as a competitive advantage. Amsterdam's AMS-IX is not just a technical facility, it's a strategic weapon. Weaviate built a vector database capable of real-time searches over billions of data points, something only made possible by the ultra-low latency of AMS-IX [10]. For founders in data-intensive sectors (AI inferencing, real-time analytics, edge computing), this is an unprecedented opportunity. Combine this with the upcoming AI Factory in Groningen, which offers free supercomputing access, and you have world-class infrastructure.

Build partnerships with corporates. The ASML-Mistral deal of €1.3 billion is a wake-up call [10]. Dutch corporates sit on capital and are looking for strategic AI investments. For startups, this means an alternative funding route: instead of a fifth VC round, seek strategic partners who bring not just capital, but also customers, distribution, and domain knowledge. Think of Philips for medtech, DSM for life sciences, or ING for fintech.

The Stockholm Strategy for Investors

The Stockholm model is a lesson in efficiency. With just 71 AI startups, the Swedish capital boasts the highest average funding per company ($27.6 million) and produces global players like Einride and Sana Labs [10]. The strategy is to invest deeply in a select number of companies rather than spread broadly. For Dutch investors, this is both a challenge and an opportunity.

Go for concentration, not diversification. The current Dutch approach, where large funds remain cautious with €50+ million rounds, creates a vacuum. What if a consortium of Dutch VCs (Peak, Slingshot, Antler) and corporates (ASML, Philips, ING) set up a joint €200 million late-stage fund? One fund, focused on 5-7 companies a year with the ambition to bring them to unicorn status. This is what Stockholm does: concentrated bets on quality.

Invest in ecosystem infrastructure. Not all capital needs to flow directly into startups. The AI Factory in Groningen is an example of infrastructure investment that elevates the entire ecosystem [12]. What if private investors set up an AI Talent Fund to fund PhDs and postdocs to work at startups? Or a Data Commons that provides companies access to shared, anonymized datasets for AI training? These are investments that strengthen the entire industry.

Think European, not just Dutch. The ASML-Mistral deal shows that Dutch players can play a role in pan-European AI champions. Instead of only financing Dutch startups, investors should look for cross-border synergies. A Dutch AI startup collaborating with a German industrial client and a Swedish technology partner has a much greater chance of scale than a purely Dutch player.

Connections That Make the Ecosystem Fly

The strength of the Dutch model lies in collaboration, but that collaboration needs to be structured and strategic. The hub-and-spoke model works, but can be much more effective.

Create cross-hub exchange programs. What if an AI startup from Amsterdam spends a month in Eindhoven to learn from ASML's manufacturing AI? Or a Delft quantum startup collaborates with a Groningen healthcare-AI startup to develop quantum-accelerated drug discovery? This kind of cross-pollination currently happens ad hoc, but can be institutionalized through a Dutch AI Hub Exchange, a program that circulates startups, talent, and knowledge between hubs.

Build sector-specific AI clusters. The Netherlands has strong sectors such as logistics (Rotterdam), agritech (Wageningen), fintech (Amsterdam), and medtech (Leiden/Utrecht). What if each of these clusters had a dedicated AI Center of Excellence, where startups, corporates, and knowledge institutions collaborate on sector-specific AI solutions? This is what Germany does with its industrial AI clusters, and it works [10].

Organize "AI Demo Days" between hubs. Instead of each hub having its own pitch events, create a rotating Dutch AI Showcase where the best startups from Amsterdam, Eindhoven, Delft, and Groningen demonstrate their technology to an audience of investors, corporates, and international partners. This increases visibility and creates a national AI brand.

Encourage corporate venture building. Dutch corporates have capital, customers, and domain knowledge, but often lack the speed and innovative power of startups. What if ASML, Philips, and DSM each set up a Corporate AI Venture Studio, where they co-create new AI companies with founders? This is not an acquisition or investment, but co-creation. It combines the best of both worlds: startup speed with corporate scale.

From Underdog to Champion

The Netherlands has all the ingredients to become a European AI leader. The talent density is there, the infrastructure is there, and the collaborative culture is there. What is missing is a coordinated strategy to connect and strengthen these elements. The Stockholm model shows that a small ecosystem with targeted investments and deep specialization can produce world leaders. The Netherlands can do the same, but in its own way: not one hub, but a network of specialized hubs that reinforce each other.

For founders, this means building on Dutch strengths (B2B, deeptech, infrastructure), thinking internationally, and seeking strategic corporate partners. For investors, it means going for concentration instead of spreading, investing in ecosystem infrastructure, and thinking pan-European. For the ecosystem, it is about creating structural connections between hubs, building sector-specific clusters, and encouraging corporate venture building.

The Dutch AI paradox is solvable. It doesn't require radical change, but rather strengthening what already works. Collaboration, specialization, and quality over quantity. The underdog has a serious bite. Now it is time to turn that bite into a lasting grip on the global market.

Max Pinas
Founder Dutchstartup.ai & studio hyra

Willem Blom
Founder Dutchstartup.ai & tech investor