NETHERLANDS Trends and Developments Contributed by: Herald Jongen, Maarten de Boorder, Samuel Garcia Nelen and Jelmer Kalisvaart, Greenberg Traurig, LLP
Introduction The Dutch tech ecosystem is thriving, supported by the Netherlands’ robust academic record. Almost all courses at Dutch universities are taught in English, and the tuition fees are very low compared to other countries. As a result, students from all over the world attend Dutch universities, and a lively start-up and scale-up scene has emerged, especially in and around Amsterdam, Eindhoven and Enschede. Also, Wageningen (AgriFood) and Leiden (Life Scienc- es) are renowned for their innovative technology and business-minded ecosystems, giving rise to many highly innovative and technology-driven businesses. The Dutch government nurtures these ecosys- tems and has, alongside historically highly active Dutch regional investment funds, recently set up a fund of EUR1.7 billion to invest in start- ups and scale-ups (Invest.nl). Other noteworthy examples of favourable government initiatives include Techleap, the Seed Capital Scheme and the Dutch Growth Fund. In shifting their invest- ment horizon from fossil fuels and other tradi - tional industries, various Dutch pension funds (which are known to have very deep pockets), such as PME and PMT, have recently also com- mitted significant funds towards (clean)tech and deep-tech developments. But of course, it is not just the government fuel- ling this favourable start up and scale-up land- scape. The Netherlands has, since the inception of “tech” as an industry, been at the forefront of technological innovation, boasting countless champion enterprises like Philips, ASML, ASMI, BESI, ADYEN and, more recently, the unicorns Bird and WeTransfer, to name only a few. The ecosystems that have given rise to and are fuel- ling these companies are driving many bright minds and investors from all over the world into
the Dutch tech sectors. And this is further fuelled by the vibrant venture capital and private equity industries in the Netherlands, which attract funds from investors worldwide choosing to invest in the Dutch and European tech sectors. The high-speed internet penetration in the Neth- erlands is high; the Netherlands boasts some of the fastest internet systems in Europe. All of these factors provide a favourable climate for investment and M&A activity. However, there have been a few geopolitical uncertainties and persistent macroeconomic challenges that can- not be ignored when describing the current trends and developments in the Dutch market. Deal Activity in 2023 and 2024 Overall, 2023 and the majority of 2024 were challenging times for the general M&A market in the Netherlands. The market had a particularly slow start in 2023, although transactions started picking up in the second half of the year. Deal- making was down, especially in the large-cap segment, and most activity was concentrated in the mid-market. Later in 2023, M&A activity in the Netherlands experienced a strong recovery, particularly in the fourth quarter. While strategic deals slightly decreased, the fourth quarter of 2023 saw the highest quarterly deal count for deals involving private equity for two years. Over 2024, general global M&A activity slowed a little, and the outlook for 2024 remains chal- lenging. However, there are signs of recovery (with stock markets still repeatedly hitting record levels) despite ongoing geopolitical uncertain- ties and persistent macroeconomic challenges. The continuing decline in inflation and lower- ing of interest rates, along with the consider- able dry powder in private equity and venture capital firms, are expected to contribute to an increasingly favourable M&A and investment
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