International Tech Hubs 2nd ed. - Digital Magazine plugd:in

BDO LLP | INTERNATIONAL TECH HUBS SECOND EDITION

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01 INTERNATIONAL TECH HUBS SECOND EDITION | BDO LLP

THE NETHERLANDS

formation of deep-tech companies such as ProDrive Technologies. Rotterdam focuses on life sciences, cyber security and telecoms, while Wageningen has become a global centre of excellence for innovation in food and agrotechnology (agritech). THE TALENT POOL The Netherlands’ university offering provides an excellent starting point for a well-educated talent pool. All thirteen of the country’s research universities are ranked in the top 200 universities worldwide. With an affordable cost of living and a desirable quality of life, the Dutch homeland offers an attractive work-life balance for talent. At present, the Netherlands’ tech ecosystem employs 69,000 people in over 1,600 companies, ranging from start-ups to scale ups and established companies. To help attract foreign talent, the Dutch government has provided temporary residence permits for non-EU entrepreneurs to create opportunities for them to innovate. There is also an inviting expat tax program, which offers a 30% personal tax income advantage.

In spite of its relatively small landmass, the Netherlands offers tech businesses access to the 17th largest economy in the world and the sixth largest economy in the European union. For innovation and high tech, it takes first place for developer capital in Europe, and is the fourth most innovative economy in the world. With tax efficiency and a large English-speaking population, there is a real ease of entry for businesses.

With expert input from Bart Paalman, Corporate Finance partner at BDO Amsterdam and co-Lead BDO Global TMT M&A. Bart has over 20 years of experience in the international corporate finance arena with a focus on the private equity and TMT sectors.

IN SPITE OF ITS RELATIVELY SMALL LANDMASS, THE NETHERLANDS OFFERS TECH BUSINESSES ACCESS TO THE 17TH LARGEST ECONOMY IN THE WORLD

WITH A TECH COMPANY ECOSYSTEM WORTH $22 BILLION IN TOTAL - FAR GREATER THAN THE GLOBAL AVERAGE OF $10.5 BILLION – THE STRENGTH OF THE SECTOR IS CLEAR

OVERVIEW: A SUCCESSFUL MARKET WITH A STRONG SYSTEM OF SUPPORT The Netherlands’ position at the doors of Europe - combined with its supportive government and plentiful capital - offers start-ups and scale ups the opportunity to take advantage of a well-established network. In spite of its small size, this robust market provides ample opportunities for investors and founders alike. THE TECH LANDSCAPE The Netherlands’ strategic location at the gateway of Europe offers a unique access point to Europe’s consumer markets. Ranked third in Europe for its global start-up ecosystem by Startup Gnome, this thriving tech hub has attracted many businesses with its healthy business climate, well-established financial industry and renowned top-200 academic institutions. Listed as Forbes’ fourth best country for business, the Netherlands’ connected economy and ease of doing digital business have cemented its position as a start-up hub for European companies in general, and unicorns in particular. Another point of appeal is the Netherland’s logistic and technological infrastructure, with high quality cable connections, the largest internet exchange (AMS-IX) and one third of Europe’s data centres based in the area.

THE TECH BUSINESS ECOSYSTEM Amsterdam is the heart of the Netherlands’ tech and start-up scene. Renowned for creative tech, advertising, fintech, software, multimedia and gaming, tech giants already established in the city include Cisco, Tesla, Panasonic, Netflix, Uber and more. An impressive 60% of all Forbes 2000 companies dealing in information technology have already established operations here. Recent businesses that have achieved unicorn status in the Netherlands include Just Eat Takeaway, Gitlab, Elastic, Bitfury, Flow Traders and Adyen. With a tech company ecosystem worth $22 billion in total – far greater than the global average of $10.5 billion – the strength of the sector is clear. Though Amsterdam leads the tech sector, there are other significant hubs in the Netherlands that attract around two-thirds of all the country’s start-up recruitment opportunities. Eindhoven is currently home to two global semiconductor giants, ASML and NXP, and the positive effect of these businesses have inspired the

THE NFIA ASSISTS BUSINESSES AT EVERY STAGE OF ESTABLISHING OR EXPANDING OPERATIONS IN THE NETHERLANDS

GOVERNMENT SUPPORT Over the last 40 years, the Dutch government has provided instrumental support to foreign companies establishing or expanding their business through the Netherland Foreign Investment Agency (NFIA). At no cost, the NFIA assists businesses at every stage of establishing or expanding operations in the Netherlands, offering site visits, introductory partner meetings and quality-of-life familiarisation . It also facilitates communication

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