"Idiotic regulations" drowning innovation, Dutch tech entrepreneurs say
Innovative tech companies are dying as startups in the Netherlands due to a flood of “idiotic” rules and regulations, according to tech entrepreneurs. The Netherlands is falling further and further behind. “We hardly play a role in the biggest technological development, AI,” Prince Constantijn told Nieuwsuur as the special envoy of startup organization TechLeap.
In advice to the European Commission last year, Mario Draghi, the CEO of the European Central Bank (ECB), warned that Europe needs to drastically overhaul its economic policy when it comes to technology and invest much more in knowledge and innovation if it wants to compete with economic superpowers like China and the United States. He also advocated for cutting overly strict regulations and other barriers that hinder innovative entrepreneurs in Europe.
The Dutch tech sector fully endorses that call. “We find startups fun and interesting, but ultimately, billion-dollar companies set the tone. If we as Europe want to remain relevant, we have to give those startups the space to continue to grow. It’s just that it’s very difficult to raise that money now,” Prince Constantijn told the current affairs program.
According to Nieuwsuur, the State of the Tech Sector in the Netherlands and Europe report shows that the number of new Dutch startups decreased from 197 in 2023 to 128 in 2024. Only 22 percent of Dutch startups grow into scaleups. And Dutch tech companies are raising much less venture capital than a few years ago.
Startups have a much better time in the United States, where 55 percent grow into scaleups and funding is easier to come by, Prince Constantijn said. “America is very flexible. There is a lot of courage to invest in something new. Look at artificial intelligence (AI) and biotech. They are able to jump on a trend very quickly.”
Job van der Voort is the founder of the company Remote, which arranges for other companies to hire and pay employees anywhere in the world. The company is worth billions and is registered in the United States. Van der Voort told Nieuwsuur that he would advise other entrepreneurs against starting a company in the Netherlands. “We are going under because of idiotic regulations and legislation,” he said.
“All AI innovations work worse here than in the U.S. And why do you have to click on cookies on every website?” Van der Voort gave as examples. He also criticized Dutch labor law. “If someone is sick, you are stuck with them for two years. That is impossible for a startup that can grow quickly but also shrink quickly. A welfare state also ends if you do not have a successful business.”
