Thanks, Duc. Let’s get to it!
Marcos: Is the federal government actively supportive of German startups?
Duc: Yes it is, there are several programs as well as institutions to help and fund the startups.
Here are a few examples of them:
- Berliner Startup Stipendium (scholarship for founders)
- Exist (more advanced scholarship)
- KMU-innovative (Initiated by the federal government for education for technological research)
- German Accelerator (supporting German startups to expand globally)
Marcos: Are individual cities supportive?
Duc: Yes, nearly every big city supports founders and startups.
Marcos: If a given city is supportive, what programs or funding are provided to startups?
Duc: They provide help with investments, consulting, knowledge or seminars.
Go here to find examples of different services provided in Berlin.
Marcos: How does the startup environment in Germany compare with that in the US?Duc: In general, there is less funding here in Germany compared to the US. Also in order to get funding the traction and the validation of the idea is crucial since investors are less risk-taking. Whereas in the US investors are also willing to invest in the vision of the startup.
Marcos: My understanding is that these are the main cities where there is startup activity: Berlin, Munich, Hamburg, Cologne, Stuttgart, Frankfurt, and Karlsruhe. Which of these cities has the most activity.
Duc: The most active city in the German startup system in Berlin followed by Munich and Hamburg.
Watch this video for a quick overview of Germany’s startup hubs: Meet the Startups in Germany: The Digital Hub Initiative
Marcos: Anything else noteworthy to know about German startups?
Duc: Berlin is among the top ten places in the world to found a startup when it comes to the ecosystem and has the second biggest ecosystem in Europe behind London.
In case you want to know more about the German startups' scene, I highly recommend to have a look at the EY startup barometer (in German). It is an annual report of the startup scene with all recent trends and transfers in detail. (If you want that or any other document translated from German you now know to call on MotaWord)
For a better understanding of what’s going on with all German businesses read this article on our blog: The Case for German Translation