Swedish start-up backer Norrsken is opening a major new hub in central Amsterdam, backed by a multi-million euro subsidy from the city council and investments from Dutch tech financiers.

Norrsken House is taking over part of the former Stork engine factory on Oostenburg east of the city centre, where around 1,000 start-up employees are expected to work from next year. The complex will also include meeting spaces and catering facilities.

Norrsken chief executive Sara Kappelmark told the Parool the Amsterdam site will become Europe’s largest “impact hub”: a base for technology start-ups with a social mission. “We were determined to find a location that is easy to reach, but above all highly visible,” she said, “so tech companies are not hidden away.”

Norrsken was founded in Stockholm in 2016 by Niklas Adalberth, one of the co-founders of buy-now-pay-later firm Klarna. The company has set up similar hubs in Stockholm, Barcelona, Kigali, and Brussels.

The hubs are run by the non-profit Norrsken Foundation, alongside five for-profit venture funds with almost €1bn in capital from international tech investors.

Norrsken focuses on technology companies that aim to address social challenges, ranging from environmental issues and healthcare to food security and poverty.

Entrepreneurs can apply for membership of Norrsken House by explaining their mission, Kappelmark said. “If it aligns with our goals – solving something in sustainability or social terms – they are welcome.”

The Amsterdam project is being co-financed by a group of Dutch investors, including the owner of the Van Gendt Halls, Bugaboo founder Eduard Zanen.

The city of Amsterdam is also contributing. The council set aside €5m this summer for investments in the tech sector, including technology education, with part of that funding now allocated to Norrsken, although it is unclear how much.

“If we want meaningful economic activity to come our way, it’s important that we invest as a local authority as well,” said economic affairs chief Sofyan Mbarki. “Other parties may do so primarily for financial return, but our return is that the city becomes a better place.”

Startup investments

According to the Dutch Startup Association (DSA), both the number and value of tech investments in the Netherlands are at their lowest level in five years. In the first three quarters of this year, €1.7bn was invested in Dutch start-ups, down from nearly €2bn in the same period last year.

The DSA also says one in three tech entrepreneurs is considering moving abroad, citing a more favourable tech climate, tax regime, attitude to skilled migrants and access to capital elsewhere.