Dutch business leaders, specifically those in the position of CEO at Bunq, express concerns about the impact of closed-minded perspectives that are deterring entrepreneurs from the Netherlands.
The Netherlands, once known for its internationalist roots, is facing a growing exodus of tech companies and entrepreneurs. The reasons for this trend are diverse, including restrictive immigration policies, a conservative corporate investment climate, tech sector layoffs, and uncertain investment conditions.
One of the key issues is the tightening of immigration rules. The Dutch government has focused on attracting only those immigrants who make a clear economic contribution. For instance, the abrupt ending of the Investor Visa in April 2024 reflects this approach, as it failed to attract passive economic participants. Additionally, political backlash has led to laws ending permanent residence status for asylum seekers, limiting access to knowledge migrants and specialist talent vital for tech companies and startups.
Another contributing factor is the conservative corporate investment behavior in the Netherlands. Despite record profits and rising corporate income, many Dutch businesses are saving large amounts of money while investing less in capital assets like buildings and machinery. This cautious, risk-averse investment climate may deter entrepreneurs and startups, who require significant capital for growth and innovation.
Tech sector restructuring and layoffs have also played a role in this trend. Companies like TomTom have announced significant layoffs as part of restructurings related to shifts toward AI and operational efficiency. Such corporate cost-cutting can create a less attractive startup and tech environment, increasing uncertainty for entrepreneurs.
The market and funding context also contribute to the concerns of Dutch tech entrepreneurs. While there is a surge in Dutch startup funding, especially in later financing rounds for medtech and software sectors, this growth is partly driven by older startups reaching further growth stages rather than an explosion of new ventures. The unpredictability of very large investments remains, contributing to entrepreneurs' concerns about the sustainability of growth in the Dutch ecosystem.
As a result, tech scaleups, including software unicorn Bird, are considering exits due to over-regulation and a bad climate for tech businesses. Ali Niknam, the founder and CEO of Bunq, one of Europe's biggest neobanks, shares these concerns. He believes the Netherlands has become too risk-averse and inward-looking, driving entrepreneurs away.
Niknam, who grew Bunq into Europe's second-largest neobank after Revolut and one of the few to achieve profitability, with over 17 million users and more than €8bn in deposits, believes the tide can turn. However, he emphasises that the "silent majority" - those who value openness and diversity - must speak up for change to come.
The proverb "Steek je kop niet boven het maaiveld uit," loosely translates to "Don't stick your head above the mowing line," and Niknam believes it thwarts ambitious entrepreneurs. He feels that success is not celebrated in the Netherlands, and entrepreneurs are almost faulted for being successful.
The situation is so severe that over nine in ten expats and migrant workers no longer consider coming to work in the Netherlands, according to research from last year. Meanwhile, the tech ecosystem in the Baltics is admired for its optimism, openness, and rapid growth.
In conclusion, a combination of factors, including immigration policy constraints, conservative corporate investment behavior, tech sector restructuring layoffs, and uncertain investment climates, are collectively contributing to Dutch entrepreneurs and tech companies contemplating leaving the Netherlands for more favorable environments. Niknam believes that a change in mindset and a renewed emphasis on openness and ambition are crucial for the Netherlands to regain its status as a tech hub.
- The restrictive immigration policies in the Netherlands, such as ending permanent residence status for asylum seekers and the elimination of the Investor Visa, have been deterring knowledge migrants and specialist talent essential for the tech industry and startups.
- The Dutch technology sector is facing substantial challenges due to the caution and risk-aversion in corporate investment behavior, which discourages entrepreneurs and startups from accessing the necessary capital for growth and innovation, potentially leading to a shift towards more favorable environments.
