It is important for the Dutch economy to attract foreign talent.’ That’s what Prince Constantijn van Oranje, special envoy for Techleap.nl, said in a conversation with BNR. ‘We have a company that wants to grow fast. If they can’t, they will go elsewhere.’

The cabinet actually wants to put the brakes on foreign students. This could have major consequences for the Dutch technology sector, Van Oranje thinks. Without foreign talent, it will be very difficult for universities and companies like ASML. We really need foreign students.’ If not, the company will go abroad.

BNR spoke at length with the prince in response to a State of Dutch Tech report prepared by Techleap.nl, a non-profit organization focused on accelerating the technology ecosystem in the Netherlands.

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Government

The report was presented to Prime Minister Rutte today. Van Oranje assesses that the government can play a major role for the Dutch technology sector. Not only through personnel retention, but also through attractive tax rules. “You’ve seen it in the UK, Israel and for some time now in Silicon Valley.”

The report also shows that Dutch startups and tech companies ‘make less money’ than their foreign competitors. Several factors underlie this, thought Constantijn van Oranje. ‘There are fewer companies here, but mainly funds in the Netherlands are smaller than in neighboring countries. As a result, the investment is also smaller.’ Therefore, investors must cooperate more, both nationally and internationally. ‘With cooperation, investment can be bigger because money comes from various sources. And foreign investors are offering access to other markets.’

Eva de Mol, co-founder of investment fund CapitalT, also looks at the cultural issue. On both sides. ‘Dutch investors are taking less risk and are more hesitant. And the Dutch businessmen only ask for less money.’

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Pension fund

It would be good for the Dutch technology sector if pension funds invested more in companies. That almost never happens now. “It’s a shame,” said Van Oranje. ‘If they invest half a percent of their total assets in venture capital, the Netherlands will become one of the largest venture capital markets in Europe.’

Pension funds often think the company or their returns are too small. In addition, there is a lack of knowledge in pension funds, said Van Oranje. A separate investment arm in a pension fund, specifically aimed at Dutch tech companies, is a good idea. ‘It will really make a difference’, says Eva de Mol. ‘Pension funds are now investing heavily in sustainability. The easiest way to do this is to invest in companies that are active, for example in the energy transition. They’re working on it, but it just takes time.’

Woman

The State of Dutch Tech report also shows that very little is invested in women-led start-ups. That share is hanging at a “shameful 0.7 percent,” the report states. “I find it very, very painful. Also because we’ve been working on this for a long time,’ said De Mol.

According to Van Oranje, this is also a question self-fulfilling prophecy. ‘The big companies are all led by men. And large companies can raise more money. If those companies are successful, more money will go to those companies.’ That’s why the prince advocated for more diversity. According to Van Oranje, De Mol has shown with Capital T that it is possible. ‘Women entrepreneurs are that this is a fund that understands them. They have a healthier channel than other investors.’

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