When the Dutch AI ecosystem truly starts generating revenue

The European arena where quality trumps quantity

Understanding the Dutch position requires a European context. The competition is fierce, and each country plays its own game. London dominates with pure scale (900+ startups, $3.6 billion funding), while Paris adopts a state-backed champion model, with Mistral AI as the flagship that raised a record round of €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 on scale with London or on state support with Paris. 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, nearly €700 million, went to a handful of top companies. The recent Series D round of Framer of $100 million in August 2025, which brought the company to a valuation of $2 billion, is a perfect example of this [11]. Together 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 €1.3 billion investment by chip machine maker ASML in French Mistral AI is a sign of a growing European awareness to build technological sovereignty and reduce dependency on American tech giants [10]. For Dutch startups, this opens the door to strategic partnerships instead of an exit to the US.

Decentralized power through the hub-and-spoke model

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

• Amsterdam: The anchor 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 world's largest internet hubs. 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 hotbed for deeptech and AI for manufacturing industries through 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 positions itself with the new AI Factory and a focus on healthcare and energy.

The scale challenge in capital, culture, and talent

Despite successes, the late-stage financing gap remains the Achilles' heel. Dutch VCs are hesitant in rounds above €50 million, pushing scale-ups to seek abroad [4]. This is exacerbated by a cultural difference, as one VC put it: "European VCs want proof before they invest, Silicon Valley VCs invest to get proof " [10].

"What we miss in the Netherlands is flexibility with personnel. Firing someone is difficult, and we need more flexible compensation structures. We have plenty of capital, but we're missing risk capital. As a country, especially in healthcare, we're addicted to subsidies." - Michel Abdel Malek, founder of Delphyr [10].

Yet a counter-movement is visible. A new generation of local, often entrepreneur-led funds like Peak Capital, Slingshot Ventures, and Antler are stepping into the gap left by the larger funds. They provide essential startup capital and mentorship to startups like Neople (AI co-workers) and Unravel (AI travel booking) [10].

What this means for startups, founders, and investors

The figures 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. The Stockholm model, where a small ecosystem excels with the highest average funding per startup, provides a blueprint. Focus on quality, specialization, and mutual reinforcement instead of pure scale.

Play to Dutch strengths as a founder

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

Choose 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. Consider Neople, which builds AI employees for customer service, or MarvelX, which develops workflow automation for insurers. These companies solve real, complex problems in sectors ready to pay. That's a fundamentally different strategy than consumer-focused AI, where competition is fierce and profit margins are low.

Utilize the infrastructure as a competitive advantage. Amsterdam's AMS-IX is not just a technical facility; it's a strategic weapon. Weaviate developed a vector database capable of real-time queries over billions of data points, something only possible with AMS-IX's ultra-low latency [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, offering free supercomputing access, and you have world-class infrastructure.

Build partnerships with corporates. The €1.3 billion ASML-Mistral deal is a wake-up call [10]. Dutch corporates hold capital and seek strategic AI investments. For startups, this means an alternative funding route: instead of a fifth VC round, seek strategic partners that bring not only capital but also customers, distribution, and domain knowledge. Consider 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 only 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 few companies rather than spreading broadly. For Dutch investors, this is both a challenge and an opportunity.

Go for concentration, not diversification. The current Dutch approach, where large funds are reluctant for €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 per 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 finance PhDs and postdocs working 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 can 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 scaling than a purely Dutch player.

Connections that make the ecosystem take off

The strength of the Dutch model lies in collaboration, but that collaboration must 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 learning 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 happens now ad hoc but can be institutionalized through a Dutch AI Hub Exchange, a program allowing startups, talent, and knowledge to circulate 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.

Stimulate corporate venture building. Dutch corporates have capital, customers, and domain knowledge, but often lack the speed and innovation prowess of startups. What if ASML, Philips, and DSM each set up a Corporate AI Venture Studio, where they build new AI companies together with founders? This is not acquisition or investment, but co-creation. It combines the best of both worlds: startup agility 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 global players. 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 diversification, investing in ecosystem infrastructure, and thinking pan-European. For the ecosystem, it is important to create structural connections between hubs, build sector-specific clusters, and stimulate corporate venture building.

The Dutch AI paradox is solvable. It does not require radical change, but a strengthening of what already works. Collaboration, specialization, and quality over quantity. The underdog has a serious bite. Now it's 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