Already 1,000 signatories from Mollie, Picnic, Bird, Dott, Coolblue, Crisp, and more.
Dear Minister, Secretary of State,
As the startup sector, we are on the frontlines of technological innovation. We are building the companies that envision and shape our digital future. This benefits all of the Netherlands. Dutch startups created 151,000 jobs in more than 50 cities. Not only do startups generate a lot of money for the economy, but we also actively invest in the next generation of Dutch top talent.
As a sector, we need to compete with companies from all over the world—from Silicon Valley to London. However, a recent study by the government has shown that this battle is becoming increasingly difficult, particularly due to a lack of employee participation. Our country ranks 22nd out of a list of 25 countries. In the United States, a company going public has 19% owned by employees, while this is only 4% in the Netherlands.
It is currently far too difficult to grant shares to employees. This is bad for startups, as shares are an important way to attract talent when capital is scarce. It is also bad for employees, because as a startup grows, they do not benefit. Thus, they cannot invest in new startups themselves, or start one with seed capital. This is part of why in the US, €803 per inhabitant per year is invested in startups, while in the Netherlands it is only €111.
We have the talent. We are just missing this so-called flywheel effect, where successful startups lead to more startups.
Complex regulations are holding back the economy and innovation capability of the Netherlands. We are rapidly losing promising companies to countries like the US, the UK, Israel, and other countries where this is well organized. To secure future earning potential, the Netherlands must change course.
We therefore urge you to:
Introduce a specific tax facility for employee participation in startups. This is particularly important for companies that are not publicly traded and have existed for a maximum of 15 years.
Simplify and reduce the tax burden on exercising stock options. Taxation on this should only occur when the shares are tradable.
Reduce the administrative burden surrounding participation schemes. Similar to other countries, a simple capital gains tax could be levied.
We are also committed to continuing to support entrepreneurs, employees, and investors in our sector. With these new measures, we can move forward.
Improved legislation regarding employee participation will directly lead to more prosperity and innovation in the Netherlands.
We are counting on your support.