Berlin is Germany’s hotspot for founders and also the new venture capital. Entrepreneurs – and also potential entrepreneurs – find exactly the right environment here to implement their business ideas.
Yearly, roughly 44,000 new companies are founded in Berlin, thus remaining the unequivocal start-up capital of Germany and gaining even more ground in comparison with other German states. The capital is particularly appealing for founders in the creative sectors and technology. On average, one new technology-related start-up is founded in Berlin every 20 minutes.
The starting conditions are advantageous: office and location expenses are much lower than in other major cities. Berlin attracts young, highly qualified people from all over the world. According to a nationwide comparison, Berlin start-ups are the most international, having a share of 33.7% of foreign employees. The high life quality at comparably low living costs, the vital scene life and international environment are the reasons for young entrepreneurs to implement their business ideas here.
Numerous national and international studies regard Berlin as a leading global location for business start-ups with the world's best growth potential. The start-ups with the highest turnover in Germany have their headquarters here, i.e. Lieferheld, Home24, Rocket Internet and Zalando. The start-up scene is not only gaining importance as a job engine for the city, but has also become an important driving force for the Berlin office market.
(Sources: Deutscher Startup Monitor 2014/2015; JLL, Berliner Start-Ups als Büronutzer, 2015)
»As an international, fast-growing Internet company, we believe that Berlin has precisely what we at Babbel are looking for: talented professionals from all over the world, a striving, startup community with excellent contacts along with a creative, future-orientated tech scene. Together with other companies, we have also benefited from Berlin’s global attraction as a charismatic metropolis because the city has triggered considerable attention among the international press and investors.«Markus Witte, CEO and co-founder of Babbel
What does Berlin offer entrepreneurs?
- International talent pool
Urban diversity, high life quality and creative atmosphere attract excellently trained, multilingual professionals from all over the world.
- Comprehensive consulting and funding
Potential founders in Berlin can look forward to various funding and consulting possibilities.
- Outstanding infrastructure
Offices at reasonable prices, numerous business incubators and technology centers as well as the most coworking spaces in Germany
- Positive investment climate
The most investments in start-ups nationwide; numerous facilities, business angels, start-up centers and investors provide support for starting a new business.
- Strong networks and technology transfer centers
Berlin’s unique scientific landscape ensures cooperation opportunities with institutions of higher education and over 300 public and private research facilities.
- Creative environment
Hotspots, sector meet-ups and events enable an uncomplicated vital exchange within the start-up scene.
- Attractive living environment
Reasonable rents and living costs in an international metropolis
Berlin is leading in private investments in start-ups: in 2015, venture capitalists invested around 2.2 billion euros in Berlin. This accounted for three-quarters of the total venture capital that flowed into Germany. Therefore, Berlin was again ahead of London with about 1.9 billion euros investments. Promising and well-established start-ups have emerged in recent years, such as 6 Wunderkinder, Outfittery, Wooga, Soundcloud, Gameduell, Mister Spex, Zalando, Helpling, Delivery Hero, Home24, HelloFresh, Foodpanda and ZipJet. Estimates see the inventive Berliner start-up scene attracting even more investors to the capital.
(Sources: IHK Berlin, 2016; Ernst & Young, 2015)
The state of Berlin initiated the together with partners from business, science and the startup scene. Seven initiatives are working together for the advancement of the startup capital Berlin.