Invest-NL Proposes €1.1bn Plan to Fix Dutch Agrifood Biotech Scale-Up Gap
A new report from Invest-NL warns that the Netherlands is failing to translate its strong agrifood biotech innovation into commercial scale-ups, proposing a major public financing push from 2026 to 2030 to close the gap.
The Netherlands accounts for 3.3% of global biotech startups but only 1.3% of scale-ups, a disparity that risks the nation's leadership in agrifood technology. To bridge this gap, Invest-NL proposes an indicative €650 million to €1.1 billion in public financing capacity between 2026 and 2030, according to a new report from the Dutch national financing institution.
Revenue potential under favourable versus current conditions
Addressing the barriers facing Dutch agrifood biotechnology companies could unlock approximately €17 billion in additional annual revenue by 2040. Invest-NL estimates that with targeted policy reforms and improved access to capital, annual Dutch agrifood biotech revenues could reach approximately €25 billion by 2040. If the current trajectory holds, revenues could stagnate at €8-9 billion.
The potential is particularly stark for specific technologies. For fermentation-derived food ingredients alone, favourable conditions could support approximately €8 billion in annual Dutch revenues by 2040, compared with around €2 billion under existing policies.
| Sector/Scenario | Estimated Annual Revenue by 2040 |
|---|---|
| Total Agrifood Biotech (Current Trajectory) | €8-9 billion |
| Total Agrifood Biotech (With Reforms) | ~€25 billion |
| Fermentation-Derived Ingredients (Current) | ~€2 billion |
| Fermentation-Derived Ingredients (With Reforms) | ~€8 billion |
Regulatory and capital barriers
Structural obstacles are choking growth. Obtaining European regulatory approval for a new biological crop protection product can take eight to ten years. For novel ingredients, approval can take one to three years longer in Europe than in the United States. These lengthy timelines, coupled with regulatory frameworks designed for chemical products that are ill-suited for modern biotech alternatives, push companies to prioritize markets like the United States and Brazil.
A parallel crisis exists in financing. A lack of industrial-scale capital prevents startups from transitioning from lab-based prototypes to commercial production, creating a valley of death between innovation and market success.
Recent deal activity and company examples
Despite systemic challenges, recent funding rounds show continued activity. Dutch companies like VitalFluid secured €17.2 million in August to commercialise plasma-activated water technology. Aardaia raised €5 million in July for its genomics-driven crop breeding, while Gravity Gardens secured €2.6 million in September for seed activation tech. Last year, Revyve secured nearly €24 million in Series B funding for its yeast-based egg replacements.
Across Europe, competitors are also scaling. In biological crop protection, France’s Agriodor raised €15 million in April and Denmark’s Mycoverse secured €2.4 million in March. In precision fermentation, French startups Verley and Standing Ovation secured €32 million and €30 million respectively in 2026, and Belgium’s MAASH obtained a €12.15 million package for mycoprotein production.
Strategic ambitions and the path forward
Invest-NL's strategy outlines clear 2030 targets to reverse the trend. Its ambitions include doubling the number of agrifood biotech ventures, reducing time to market by a factor of three, and developing five globally competitive companies capable of raising more than €100 million each. The institution argues for a strategic focus, stating, "The Netherlands does not need to manufacture everything domestically. Instead, it should focus on retaining strategically valuable knowledge, intellectual property, companies and specialised capabilities."
The report concludes that the window for intervention is narrowing, with the nation's long-standing status as a global powerhouse in agrifood technology under immediate threat.
