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Startup capital Berlin

Berlin is Germany’s hotspot for founders and also capital for tech-investments. Entrepreneurs – and also potential entrepreneurs – find exactly the right environment here to implement their business ideas.

With around 40,000 business registrations per year and more than 500 startup companies, Berlin is undisputedly Germany's founder capital and is expanding its nationwide lead. With its approximately 2,500 existing startups, the capital is particularly attractive to potential entrepreneurs in the creative and technology industries.

18.1%Software as a Service49.3%Berlin startupsactive in the top 4 sectors8.2%Online marketplaces9.2%Finance/Financial Technology13.8%IT/Software development (Sources: Berlin Startup Monitor 2018, Google for Entrepreneurs und Bundesverband Deutsche Startups e.V.)

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. 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 startups with the world's best growth potential.

(Sources: Deutscher Startup Monitor 2017)

Why Berlin?

„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
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 startups nationwide; numerous facilities, business angels, startup 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 startup scene.
  • Attractive living environment
    Reasonable rents and living costs in an international metropolis

Berlin is the European and German leader in investments in startups: in 2018, venture capitalists invested around 2.6 billion euros in Berlin. Promising and well-established startups have emerged in recent years, such as Soundcloud, Gameduell, Mister Spex, Zalando, Helpling, Delivery Hero, Home24, HelloFresh, ZipJet, movinga,  Auto1, Foodpanda, Raisin, GetYourGuide, or N26. Berlin is popular with foreign VC investors. These accounted for nearly 40 percent in 2017. The share of VC-financed startups in Berlin's workforce is also increasing significantly. 

(Sources: IHK Berlin, 2016; Deutscher Startup Monitor 2017; Ernst & Young, 2018)

The state of Berlin initiated the Berlin Startup Unit together with partners from business, science and the startup scene. Seven initiatives are working together for the advancement of the startup capital Berlin.

national averageBerlinMunichHamburgRhine-Ruhr metropolitan regionKarlsruhe/StuttgartHanover/Oldenburg10.927. number of employees in startupsInternationality(Sources: Berlin Startup Monitor 2018, Google for Entrepreneurs und Bundesverband Deutsche Startups e.V.)almost50%of employees in Berlin startupscome from abroad

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Dr. Christian Herzog

Dr. Christian Herzog

Head of Division
Digital Business | Startups

Berlin Startup Map

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