Employment in Amsterdam’s tech ecosystem

Commissioned & supported by

10 April 2019 | Second Edition

Contents

1. Key findings

2. Headline employment data

3. The dataset

4. Methodology

How big is Amsterdam’s startup economy?

3

▪ How significantly is Amsterdam’s startup ecosystem contributing to job growth? That’s the question explored in this report, prepared by Dealroom.co with hands-on support from StartupAmsterdam

▪ After the first edition in November 2017, this second edition is again taking a bottom-up approach, using Dealroom’s database as foundation, with additional desktop research

▪ Most of the data used is available for free on the Amsterdam Startup Map

▪ Nearly 3,000 organisations were screened, of which eventually 1,600 companies were included

▪ Methodology and scope are covered in detail in the final section of this report

▪ Further feedback or questions are encouraged. If you like this report, please feel free to share it!

1,661Tech companies

Includes 1,346 home-grown and 315 foreign tech companies and covers a vast spectrum from seed startups to

established tech companies like Adyen, Booking.com and Takeaway.com

69KTotal jobs in tech companies

This equals roughly 13% of the total

545K job market. Includes 37K jobs from

home-grown companies and 32K from

foreign tech

+13KNew jobs added in last two years

Startups are the economy’s #1 job

growth engine, well ahead of any

individual sector. Companies younger

than 5 years add most jobs

28Average team size

Among home-grown tech companies,

the average team size is 28. The average

VC backed startup has 50 people

(companies which raised >€1M)

12%Mixed or female founders

Female or mixed founder teams

represent 12% of all startups & scaleups,

which is slightly below the European

average

What you need to know about the Amsterdam ecosystem

69K jobs at tech companies in Amsterdam, of which more

than 54% at home-grown companies

Source: Dealroom.co custom research, City of Amsterdam. As of Dec. 2018 5

1,213 startups 128 scaleups 5 grownups315 foreign tech

companies

1,661 total tech

companies

2-50 employees

HQ in Amsterdam

>51 employees

HQ in Amsterdam

IPO-ed and profitable companies

HQ in Amsterdam

Foreign tech companies with a

major presence in Amsterdam

Including: Dott, ParkBee,

Ikbenfrits, Crisp, BridgeFund,

Nowa, others

Including: MessageBird,

BUX, Ticketswap, Picnic,

Swapfiets, Impraise, others

Including: Booking, TomTom,

Adyen, Takeaway, Elastic

(Adyen and Elastic went public,

valued €20B and €6B. Takeaway

moved to A’dam)

Including: Uber, Netflix, Tesla,

Amazon, Microsoft, Stripe, Vainu,

Shippeo, UiPath, Snap, Bird,

others

Number

of Jobs

14,568

15,7456,756

32,041 69,110

Startups & Scaleups Scaleups Grownups Foreign tech Total

5K 6K 7K

24K28K 30K

27K

29K32K

56K

64K69K

0K

20K

40K

60K

80K

Dec '16 Dec '17 Dec '18

6

Source: Dealroom.co and StartupAmsterdam.Note: Compared with Nov 2017 report, we have upwards revised our estimates for Dec 2016 (50K) and Nov/Dec 2017 (55K excluding media) as new companies were identified. Data shown on this chart are like-for-like latest estimates. As of Dec. 2018

Total employment has grown from 56K to 69K in two years,

an increase of 13K and an annual growth rate of 12%

Foreign tech

Home-grown Startups & scaleups

Home-grownGrownups

Jobs

101K

69K

58K

46K

39K

28K

26K

Advisory & research

Tech jobs

Creative sector

Finance

Restaurants, bars & hotels

Real estate

Retail

With 69K jobs, tech startups & scaleups contribute to 13% of

jobs in Amsterdam

7

Jobs by sector

Source: Amsterdam statistics bureau. Startup Amsterdam and Dealroom.co. As of Dec. 2018

Amsterdam-based startups, scaleups and grownups = 37K

Foreign techin Amsterdam = 32K

Includes: Legal (33K), HR (22K), R&D (17K), Marketing & Advertisement (16K)

Includes: Arts (23K), Creative business services such as museums (18K) and Entertainment (16K)

Total in Amsterdam:

545K jobs

69K = 13%

With 13K new jobs added in the last two years, startups &

scaleups are the leading job growth engine

8

Net jobs added by sector (Dec 2016 - Dec 2018)

Source: Startup Amsterdam and Dealroom.co. As of Dec. 2018

Jobs added by foreign startups= 5k

Jobs added by Amsterdam-based startups = 7.5k

+7K

+4K

+4K

+4K

+1K

+1K

+13KTech jobs

Advisory & research

Creative sector

Real estate

Restaurants, bars & hotels

Retail

Finance

Amsterdam-based startups, scaleups and grownups = 8K

Foreign tech in Amsterdam = 5K

Summary data of the 1,661 tech companies: startups,

scaleups, grownups

9Source: Dealroom.co and LinkedIn. As of Dec. 2018.(1) Amsterdam Bureau of Statistics, and Chamber of Commerce data. Estimated data by Dealroom based on data from 2017.

Home-grown tech companiesForeign tech companies in

Amsterdam (1) Total

Companies Jobs Companies Jobs Companies Jobs

2-10 people 719 3,539 92 490 811 4,029

11-50 people 494 11,029 135 3,102 629 14,131

Total Startups 1,213 14,568 227 3,592 1,440 18,160

51-200 people 112 10,841 55 5,622 167 16,463

201-500 people 16 4,904 23 7,509 39 12,413

Total Scaleups 128 15,745 78 13,131 206 28,876

Grownups 5 6,756 10 15,318 15 22,074

Total 1,346 37,069 315 32,041 1,661 69,110

Total Amsterdam (1) 120,214 545,268

% of total Amsterdam 1.4% 13%

Contents

1. Key findings

2. Growth drivers

3. The dataset

4. Methodology

Booking, TomTom, Picnic and Adyen are the biggest

employers

11Source: Dealroom.co. As of Dec 2018.

Total employees in Dec 2018

3,625

1,779

836

543

1,166

131

0-5 years 6-10 years 11-15 years 16-20 years 21-25 years 26-30 years

Meanwhile, 44% of new jobs are added by home-grown

companies aged 5 years or younger

12Source: Dealroom.co. As of Dec. 2018

Examples:

Jobs added between Dec ’16 - Dec ‘18

44%

Selected fast hiring startups & scaleups

13Source: Dealroom.coEmployees in Netherlands. As of Dec 2018

Total jobs in Dec 2018

Added jobs during Dec 2016-Dec 2018

50 100 150 200 250

100

200

300

400

500

600

700

800

0 500

17

28

3234

40

50

2013 2014 2015 2016 2017 2018

Number of VC rounds of €1 million or larger

Venture capital investment is a catalyst for startup growth, and its activity has grown over 3x in past six years

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 14

€25M Series C $24M Series B

$23M Series B €20M Seed

€15M Early VC €15M Growth Equity

€12M Series C €11M Series B

Framer

Increased availability of venture capital enables startups to accelerate their hiring plans

15Source: Dealroom.co.

Team size by funding stageTeam size by total funding amount

14

43

89

132

328

Seed Series A Series B Acquisition IPO

2133

5167

76

267

$2M $5M $10M $20M $50M

$0M $2M $5M $10M $20M $50M+

Fintech, and SaaS are the biggest contributors

16Source: Dealroom.co. As of Dec 20181. Percentage change between Dec 2016 – Dec 2018

Companies Employees Employees per company Jobs added (Dec ‘16 - Dec ‘18) Growth (1)

Fintech 184 6,752 37 1,740 35%

Enterprise software 246 5,385 22 1,239 30%

Travel & Tourism 67 6,239 93 917 17%

Food Tech 45 1,669 37 821 97%

Transportation 71 3,104 44 736 31%

Marketing & Advertising 143 3,092 22 730 31%

Digital Healthcare 89 1,717 19 518 43%

Digital Media 134 2,227 17 453 26%

Jobs & Recruitment 44 858 20 348 68%

Energy & Cleantech 68 1,826 27 331 22%

Other 255 4,200 30 488 12%

Total 1,346 37,069 28 8,321 31%

When it comes to founder diversity, Amsterdam is

performing below average: opportunity for growth

17Source: Dealroom.coNote: Sample size Stockholm = 681, Barcelona = 337, London = 3545, Berlin = 1125, Amsterdam = 579, Paris = 1160

Startups with at least one female founder

15%

15%

14%

14%

12%

11%

Stockholm

Barcelona

London

Berlin

Amsterdam

Paris

Contents

1. Key findings

2. Growth drivers

3. The dataset

4. Methodology

81% of companies in the dataset are 10 years or younger

19

Number of companies by age

Source: Dealroom.co. As of Dec. 2018

Examples:

637

454

155

7322 5

0-5 years 6-10 years 11-15 years 16-20 years 21-25 years 26-30 years

81%

54% of jobs in the dataset are from companies that are 10

years or younger

20

Number of jobs by age of employer company

Examples:

8,974

11,046

5,0864,425

6,065

1,618

0-5 years 6-10 years 11-15 years 16-20 years 21-25 years 26-30 years

Source: Dealroom.co. As of Dec. 2018

54%

90% of companies in the dataset have 2-50 employees, which

contribute to 39% of startup jobs

21

Distribution of companies by size Distribution of employees by size

719

494

112

17

4

2-10 people

11-50 people

51-200 people

201-500 people

More than 500 3,539

4,616

7,044

10,841

11,029

2-10 people

201-500 people

More than 500

51-200 people

11-50 people

Source: Dealroom.co. As of Dec. 2018

5K 5K 6K 5K 6K 7K

17K 19K22K 24K

28K30K

23K25K

27K 27K

29K

32K

45K

50K

55K 56K

64K

69K

0K

20K

40K

60K

80K

Dec '15 Dec '16 Nov '17 Dec '16 Dec '17 Dec '18

22Source: Dealroom.co and StartupAmsterdam.Note: excludes media which was included in Nov 2017 report.

Previous report (Nov 2017) New report (March 2019)

Compared with the Nov 2017 report, existing companies and

more jobs were also identified for previous years

Foreign tech

Startups & scaleups

Grownups

+6K more jobs identified since last report

+9K more jobs identified since last report60K including

media

Contents

1. Key findings

2. Growth drivers

3. The dataset

4. Methodology

How we arrived at a clean list of startups & scaleups

24The full industry & business model taxonomy is online on the Dealroom platform.Contrary to last year, we excluded traditional media: De Persgroep, Telegraaf Media Groep (TMG), DTG, NRC Media, Mirabeau, FD Mediagroep, Eyeworks.

2,851 companies

1,661 companies1,346 home-grown tech

315 foreign tech

Initial dataset:Captured by the ecosystem map, using multiple sources including news-flow processing, web scraping,

analytics, user-submitted contributions and manual research

Final dataset:Startups & scaleups founded in Netherlands and HQ in Amsterdam

Edge cases with predominantly digital business models: Ace & Tate, FietsenwinkelForeign tech such as Uber, Netflix, Tesla, Amazon, Dell, Microsoft

Counting only employees in Amsterdam

2,236 companies

Excluded: non-tech companies259 service providers: DFFRNT Media, DEPT Agency, Us Media183 non-tech: Eyeworks, Suitsupply, TrainMore116 mature (founded before 1990): Optiver, HERE, ChipSoft44 workspaces: Rent24, Zoku, B. Buildings13 non-profit organizations= 615

Excluded: 575 companies with one employee or insufficient data

What is a startup / scaleup?

25

✓ Business models

Software-as-a-Service, online marketplaces, booking platforms, eCommerce, subscription services, online advertising, mobile apps

✓ Internet verticals

Marketing tech, Sports, Energy, Media & content, Telecom, Hosting, Food tech, Transportation, Real Estate, Jobs & recruitment, Wellness & beauty, Cyber Security,

Education, Health, Dating, Legal, Music, Gaming, Fashion, Home Living, Fintech, Travel

✓ Technologies

Robotics, Artificial intelligence, Wearables, Biotechnology, 3D Printing, Computer vision, Sensing, Augmented reality, Blockchain, Semiconductors, InternetOfThings

Excluded companies

Agencies, one-person companiesMature companies founded before 1990

Non-tech such as telecom, offline retail, offline media

Startups/scaleups are by their nature innovative,

often found within these business activities:Startups/scaleups typically share some (not

all) of the following characteristics:

Tech enabled

Innovative by design

Venture backed

Scalable

High-growth (potential)

Global ambitions

Source: Dealroom.co. The full industry & business model taxonomy is online on the Amsterdam Startup Map.

Here’s why we don’t use “catch-all” filters to extract startup/scaleups from a generic company register

26Source: Dealroom.co

Some companies are >10 years old but clearly are relevant, e.g. Adyen, Takeaway.com

It takes time to build a business! Dealroom data shows that it takes 10 years to reach 40 people, on average

Finally, filtering by age makes studies over longer periods of time counterintuitive as startups start to drop-off (need to look at cohorts)

Growth metrics (especially revenues) are not always available, especially for young companies

Establishing an exact % threshold is hard (20% YoY can be fast in some context, but slow in others)

% growth should be adjusted for size, making it both complex & arbitrary

Age Growth Industry

The industry taxonomy available in traditional company registers are not made for the post-internet age

For example, the industry “ICT” may include a computer shop, whereas a food tech business might be included in “Food & Beverage”

Example: “Only include companies younger than

10 years”

Example: “Only include companies that grow

faster 20%”

Example: “Filter by industry codes in ICT”

27

Explore the underlying data from this report

Open access & user-

submitted data

Ecosystem map live

since 2015

Number of organisations

tracked grew from 250 to

over 4,000

Visit: https://startupmap.iamsterdam.com/dashboard

28

Rapidly expanding network of online ecosystems

28

Coming soon: nation-wide report with StartupDelta & CBRE

blog.dealroom.co

Yoram Wijngaarde

yoram@dealroom.co

Ivan Draganov

ivan.draganov@dealroom.co

For questions please feel free to contact us.

Gligor Micajkov

gligor@dealroom.co