Belgium, often celebrated for its exquisite chocolates and stunning architecture, is more than just a picturesque European city. But how about its local startup community?

Delving into its major entrepreneurship hubs, we discover a blend of historical charm and modern innovation. Let’s take a quick tour of its major entrepreneurship hubs and recent evolution as a venture ecosystem!

Belgium’s strong pillars

Nestled between France, Germany, and the Netherlands, Belgium offers easy access to major European markets, along with a gateway to the sea.

Source: Startup Ecosystem Toolkit 2.0

Excellent transportation links, including high-speed rail networks and world-class ports like Antwerp, enhance this prime positioning. Startups in Belgium benefit from this accessibility, enabling them to reach a broad customer base and connect with international partners effortlessly.

Let’s quickly tour the country and discover what makes it shine!

A social enterprise ecosystem.

This country has a strong tradition of social companies and businesses that aim to create environmental benefits while generating profits.

Belgium also has a favorable legal and fiscal framework for these enterprises, with several local and regional organizations that support their development. The country has been among the top three European countries in recent years, according to the same report published by the European Commission.

A community with inclusive entrepreneurship.

Secondly, Belgium also has policies in place to promote inclusive entrepreneurship among under-represented and disadvantaged groups, such as women, youth, seniors, immigrants, and the unemployed.

The country ranks slightly under the EU median regarding the administrative burden on start-ups, and the European Semester Country Report identifies a need for further improvement in reducing the regulatory burden and complexity.

A highly educated workforce.

Belgium has a high-quality workforce with a strong focus on digital skills and multilingualism. The country is one of the European countries that attracts the most foreign investments, and its workforce is seen as a strong point by foreign investors.

Source: The Belgian Attractiveness Survey

The strong collaboration of local industries with universities.

Belgium's chemical, plastics, and life sciences industry is a major sector, with a broad range of state-of-the-art sectoral competence centers to train, reskill, and upskill employees, students, and job seekers.

The life sciences sector in Belgium is predominantly concentrated in the Walloon-Brabant province, located to the east of Brussels and close to several universities and around the Antwerp area. In Ghent, a renowned biotech valley exists, pooling top-tier medical, industrial, and agricultural biotechnology knowledge.

Collectively, these regions position Belgium as Europe's health and biotech valley, renowned for its exceptional skills in research and development, biomanufacturing, and distribution. Additionally, companies specializing in plastic and rubber processing are dispersed nationwide.

The startup funding landscape in Belgium

The evolution of Belgium's venture ecosystem has been remarkable.

It's a fusion of supportive government policies, a multicultural and skilled workforce, and a strategic location in the heart of Europe. These factors and a culture encouraging innovation and entrepreneurship make Belgium an exciting and promising startup landscape.

The Flanders Startup Evolution

Source: The State of Flanders Startup Ecosystem

The Flanders region of the Belgian startup ecosystem has been growing steadily in recent years, strengthening its links with the rest of the world. VC investment reached an all-time high in Flanders in 2022, though VC activity progressively slowed down from Q1 2022 to Q1 2023.

Source: The State of Flanders Startup Ecosystem

This region became one of the fastest-growing DeepTech regions in Belgium, with a record €84M in 2022 and a combined enterprise value of €1.3B. Deep tech spinouts have led the growth, representing 43% of combined EVs.

Source: The State of Flanders Startup Ecosystem

Major startup communities in Belgium

Source: The State of Flanders Startup Ecosystem

Brussels

Brussels, the heart of the European Union, stands out not just as the political center but also as a thriving hub for tech startups. It's a meeting point of cultures, ideas, and opportunities, attracting entrepreneurs from across the globe. The city's proximity to major EU institutions also offers unique networking opportunities and access to funding.

The city has notable success stories, including UnifiedPost and its startup ecosystem, Tour & Taxis. The most common industries for startups in Brussels are Social and leisure, Healthtech, and Software & Data

Antwerp

Antwerp, a city known for its diamond trade and fashion, is also making a name in the startup world. Its port, one of the largest in the world, has become a launchpad for logistics and supply chain startups, leveraging its strategic position to innovate in global trade.

In recent years, the city has been known as one of the most thriving local ecosystems with the largest number of startups. Antwerp focuses primarily on digital, circular, and health economic innovation. The city has built an ecosystem of hubs for each of these three innovation clusters, such as The Beacon, BlueChem, and BleHealth Innovation Center.

Ghent

With its medieval architecture, Ghent is another jewel in Belgium's startup ecosystem. Ghent's startup scene is diverse, focusing on industries such as healthtech, software & data, and clean technology.

The city is known for its remarkable revolution in clean technology, and it's transforming into a dynamic center for biotech and health tech startups, driven by its strong academic foundations and research institutions.

Liege and Leuven

Liege and Leuven are not far behind in the startup community.

With its industrial heritage, Liege is reinventing itself in the digital and tech space. At the same time, Leuven, home to one of Europe's oldest universities, is a hotbed for research-driven startups, especially in engineering and technology.

Belgian venture capital funds

• Pitchdrive — Pitchdrive is a radical break from traditional early-stage investing. It empowers founders to build great startups with support from seasoned entrepreneurs.
• GIMV is a European private equity firm that invests in selected investment platforms focusing on Benelux, France, and Germany.
• Hummingbird Ventures is a global early-stage venture capital fund backing outlier founders.
• Capricorn Partners is a Belgium-based manager of project capital and equity funds which invests in technology companies.
• The Faktory Fund — The Faktory Fund is a private tech venture capital seed fund founded by Pierre L’Hoest, Belgian entrepreneur, and co-funded by Simon Alexandre (Former CETIC CEO).
• Heran Partners — a team of HealthTech entrepreneurs turned VC professionals that have founded laboratory groups, software companies, and tech companies, and are now investing in the next generation of HealthTech startups.
• Smartfin — Smartfin is a private equity fund targeting growth technology companies headquartered in Europe and the United Kingdom.
• Volta Ventures is a venture capital firm that offers seed & early-stage VC for internet & software companies in the Benelux.
• AMAVI Capital — AMAVI is a fully independent investment fund with a pan-European scope, established to support growth of the leading and most promising scale-ups active in the PropTech industry.
• Astanor Ventures is a venture capital firm focusing on entrepreneurs regenerating the food, blue ocean economy, and agriculture sectors.
• Fortino Capital is an investment firm that actively supports and advises growth companies.
• Inventures is the first European crowd-venturing impact fund, a venture capital based in Belgium investing in early-stage impact businesses
• Aconterra Capital Partners — Aconterra is a venture capital fund with a thematic focus on PropTech, Smart Building Technology, and the Energy Transition that finances and supports European early-stage companies that make buildings more intelligent and energy efficient, safer, and better to live or work in.

These are just a few of the local venture capital funds.

Check out our European VC Network database's full list of Belgian venture capital funds.

Belgian unicorns and future unicorns

The Belgian startup community is now competing with other large European markets, such as Austria, with the Flanders region gaining the most traction. Over the past years, the local startup ecosystem has been home to a few unicorns, such as Odoo, Collibra, Automotive Cells Company, and Deliverect.

• Odoo is a Brussels-based company established in 2015 by Fabien Pinckaers to offer comprehensive business software to small and medium-sized enterprises (SMBs) worldwide.
• Collibra is a spin-off of the VUB University of Brussels. It provides a cloud-based platform to help companies grow with a data-driven culture by integrating IT and business operations.
• Automotive Cells Company provides advanced technology to facilitate clear and efficient mobility and contribute to the development of decarbonized transport solutions.
• Deliverect is a solution for online food delivery efficiency built after the software as a service model, and which connects +25K channels and food establishments.

Source: The State of Flanders Startup Ecosystem

What do local investors think?

“Belgium is a prime destination for startups seeking investment in Western Europe. It offers modern infrastructure, top-notch research facilities, and a thriving startup ecosystem.

With public and private support, Belgium provides an ideal environment for entrepreneurs looking to capitalize on European opportunities.”

Says Simon ALEXANDRE, Co-founder & General Partner at The Faktory Fund.

“Our view on the market is that Belgium is a very fertile ground for life science investments, coming originally from a heavy BioTech focus and moving into MedTech and HealthTech. This is also our main focus at HERAN Partners.

The excellent academic research in these fields, combined with the insights and research of institutes such as VIB (Flemish Institute of BioTechnolgy) and Imec (semiconductor research), brings many ideas and innovations to life.

The maturing of the sector also brings back experienced people to the business to help and get these companies booming.”

Says Katleen Vandersmissen, Managing Partners at Heran Partners.

“Belgium is steadily establishing itself as an emerging tech hub, driven by several key factors. A significant contributor is its well-educated and skilled workforce, enriched by the presence of top-tier universities and research institutions.

The proactive support from the Belgian government in the technology sector, through incentives and favorable policies, further encourages innovation and entrepreneurship.

As a result, we are seeing a growing number of high-quality companies originating in Belgium that have the potential to emerge as leaders not only in Europe but also globally.”

Says Toon de Neef, Associate at Smartfin.

“Belgium is gradually solidifying its position as a prime destination for startups seeking investment in Europe.

The rising tech hub status, fueled by a skilled workforce and general and thematic VC funds such as Aconterra, offers a promising environment for innovation. The diverse and inclusive startup ecosystem, along with collaboration between industries and universities, provides ample growth opportunities.

With access to European markets, a robust venture capital landscape, and success stories of local unicorns, Belgium offers international startups a dynamic and compelling environment to thrive.”

Says Frederik Stappers, Senior Investment Analyst at Aconterra Capital Partners.

"In recent years, Belgium has witnessed an increase in founders who have sold their companies, transitioning into roles as angel investors or embarking on new ventures once again, armed with a wealth of experience. Additionally, entrepreneurial talent is joining forces through innovation hubs, venture builder/studio communities."

Says Nicolas Christiaen, Venture Partner at AMAVI Capital.

“Over the past two decades, we've observed numerous companies within Belgium's dynamic entrepreneurial ecosystem successfully nurture a culture of innovation, leading to the incubation of a significant number of startups that continue to thrive. This flourishing environment offers substantial support for budding entrepreneurs, guiding them from the initial stages of their concept to achieving their first significant market impact.

The recent surge in both knowledge-based and financial assistance has been a critical factor in this growth, providing emerging business founders with essential resources and encouragement to dedicate themselves fully to their ventures.

Moreover, there is an increasing trend towards internationalizing the ecosystem, evidenced by larger tech events and growing interest from foreign investors eager to engage with Belgium's vibrant startup scene.”

Says Lotte Geldermans, Portfolio Manager at Pitchdrive.

“Belgium's tech scene is growing fast, thanks to successful tech companies being exited.

This has led to a wave of new startups supported by experienced entrepreneurs who have gone through the start-to-exit cycle before.

These seasoned leaders offer more than money; they bring knowledge and connections, helping the ecosystem grow. This cycle of success and reinvestment is making Belgium, and Flanders more specifically, a top place for new startups and investors."

Says Stan Jeanty, Principal at Volta Ventures.

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