Dutch semiconductor businesses are raising more cash, according to the Economic Affairs Ministry’s annual report.
Dutch semiconductor companies are garnering a growing amount of capital, according to the Economic Affairs Ministry’s annual study, which was released on Wednesday.
Venture capital funding for Dutch chip firms increased for the fifth year in a row in 2023, hitting 216 million euros ($234 million), according to Techleap research, aided by increased awareness of semiconductor equipment producer ASML (ASML.AS), Europe’s largest tech firm.
The Netherlands is also home to chipmaker NXP (NXPI.O), as well as equipment businesses ASM International (ASMI.AS) and BE Semiconductor (BESI.AS).
The research identified two photonics startups that got considerable funding: Smart Photonics and Effect Photonics. Photonic semiconductors employ light rather than electrons to produce transistors.
The survey, which takes a critical look at the relative situation of Dutch entrepreneurs, found that Dutch enterprises continue to struggle with “scaling up” or going beyond their first funding stage.
When they do grow, it takes them longer to secure new capital than their peers in the United Kingdom, Germany, and France, and considerably longer than in the United States. Dutch companies are also more likely to be acquired before attaining a 1 billion euro ($1.1 billion) valuation, as was the case with Booking.com (BKNG.O), which was founded in 2005 and is now worth more than 100 billion euros.
The report advised that the Netherlands follow Sweden in luring more pension fund money into funding transactions, France and Britain in offering more tax incentives to venture capital, and Germany in granting greater stock ownership to employees.
It stated that the Netherlands is improving in terms of capitalizing on university research and backing “deep tech” startups, which are based on engineering or scientific advantages, but it could do better.
Weaviate, a platform for developing AI software applications, is one of the few Dutch artificial intelligence businesses to have raised $50 million.
Also read: The Road Ahead: Predictions for the Future Evolution of Artificial Intelligence
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