July 14, 2024
Growth in investments in Dutch startups has not yet continued
![Growth in investments in Dutch startups](https://techleap.nl/wp-content/uploads/sites/2/2024/07/Growth-in-investments-in-Dutch-startups.png)
The investments worth approximately 430 million euros in the second quarter represent a decrease of 10% compared to the same quarter last year, when it amounted to 475 million euros. Compared to the previous quarter, in which 1.05 billion euros were invested, this is a decrease of 59%. Compared to the first quarter, the number of deals remained roughly the same, but there were no deals of around 100 million or higher last quarter. These amounted to a total of 548 million euros in the first quarter, which explains a large part of the difference. The total number of investments in Series B and later (15 million and higher) decreased even further, from 14 to 9.
The total number of deals decreased by 20% compared to the same quarter last year. A large part of this decline comes from the number of deals in the first growth phase (Series A: 4-15 million) which went from 20 in Q2 last year to 10 last quarter. In the early stage, up to 1 million euros (pre-seed), the number of investments did increase, from 14 to 19, compared to the first quarter.
In the past quarter, 3 quantum tech startups have raised investments: Qblox ($26 million), Orange Quantum Systems (amount not disclosed) and Q*bird (€2.5 million). The largest rounds were in artificial intelligence (Axelera AI, CuspAI and Nebul), sustainability & impact (BioBTX and Mosa Meat) and biotech (Vitestro, Flindr Therapeutics and Vico Therapeutics).
The 10 largest deals of the past quarter*:
After estimates for amounts that were not disclosed, the following overview is created in which quarters can be compared over a longer period:
The picture in Europe is mixed. Some countries such as the United Kingdom and France had a weaker first quarter and a better second. Germany, like the Netherlands, shows a decline. Europe as a whole, including the UK, shows an increase of 17%, from 13.6 to 15.8 billion dollars. Based on the amount of investments, the Netherlands is in 5th place in Europe (EU + UK; source: Dealroom).
“Although Q2 is somewhat disappointing, around 1.5 billion euros have been invested in Dutch tech companies so far this year,” says Lucien Burm of the Dutch Startup Association. “That is considerably more than the 900 million euros in the first half of 2023. The expectation is therefore that 2024 will ultimately be higher than 2023, when approximately 2.1 billion euros were invested.”
“It’s striking that there were almost half fewer investments in the segment of 4 to 15 million euros in 2024 so far,” says Thomas Mensink, analyst at Golden Egg Check. “These are typical Series A rounds. Where the challenge previously mainly lay in the early phase, up to 1 million euros, and the large rounds in the later phase, it now seems to be right in the middle. Perhaps companies are still waiting for the right time to come back to the market for their Series A round.”
“Without available financing in the various growth phases, growth is inhibited,” says Maarten Cleeren, managing director of Techleap. “Scaling up deeptech companies requires deeper pockets, even in the early stages of growth. Targeted collaboration between public and private financiers, nationally and internationally, is crucial to make a difference in and for the Netherlands.”
View the list of all investments in Q2 2024 here.
For more information about the investments in the first quarter, see the overview at Dealroom here.