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Business life is all about growth and that’s all true in case of Germany’s tech Startup ecosystem. Tech Startup companies in Germany alone have crossed a significant value mark of more than €100 billion.

Looking within Europe, Germany might be or is considered a strong competitor to become the next local Silicon Valley. Below image throws some good light on true status for why Germany can become the next Silicon Valley for Europe owing to its successful tech Startups.

Pic 1 Total Combined Value of German Tech Startup 450Pic 1: Total combined value for German tech Startup

In an article by IT Sourcing Blog, we at pliXos had discussed about the serious skill shortage which is amongst the top issues faced by Europe’s major IT Hub cities for SW Developers, including Munich. The article reads and gives analysis of SW developers market of 2018, and the gaps existing between the demand and supply of SW developers in Europe.

Today, an important source mentions that Berlin is ranking higher than other cities of Europe, giving a neck to neck competition to London for becoming the top destination for future Startup ecosystem. Berlin, once famous for its club life and party hard life is becoming the desired destination for many founders and entrepreneurs.

Pic 1 Total Combined Value of German Tech Startup 450Pic 2: Most founders choose Berlin for their Startups
(Source: Heureka Conference)

Now that it is quite estimated that sooner or later Berlin will rise to be the new Silicon Valley of Europe, an obvious question arise here is what is it that attracts the founders most? The answer lies in the existing startup ecosystem, tech environment, availability of talent and a lower hourly rate than that in London, making it one of the main competing locations on European land.

Reasons Why Founders & Entrepreneurs are eying Germany (Berlin & Munich mainly) for their Startups

1. Access to Talent:
According to Startup Heatmap Europe study, it can be said that talent has overcome the access to capital investments causing migration of tech Startups in Europe.
Berlin alone ranks 2nd in Startup heat map 2018 report for EU, with access to 34% of total investments by Foreign Businessmen, Entrepreneurs & Angelist. Munich holds 7th position on popular Startup heat map zones in Europe.

2. High Tech Meetups Environment:
Berlin grabs 1st position for receiving highest votes high tech meetups environment by the Entrepreneurs, Founders & Businessmen. The availability of a good pool of skilled talented IT professionals is a major factor for this.
Munich, the 3rd largest city in Germany has also gained grass in attracting a lot of attention by skilled IT professionals and employers due to opportunities and networks flowing evident from visible tech events such as High-Tech Gründerfond‘s FD19 and TechDays.


Pic 1 Total Combined Value of German Tech Startup 450Pic 3: Startup Ecosystem Performance index for Berlin
(Source: EU Startup Heatmap Report)

3. Increase in attendees of High-Tech Meetups:
Berlin surpassed Paris in terms of more attendees for Tech Startup meetups held in 2018 in major Startup enthusiastic European cities. There were more than 1, 60,000 attendees for the high-tech meetups hosted in Berlin in 2018. This gives a strong reason to believe the dynamic and engaging environment in Berlin for attracting tech Startup companies.

Pic 1 Total Combined Value of German Tech Startup 450Pic 4: Berlin dethrones Paris in maximum attendees on High Tech Meetups in Top European cities for Startup interaction
(Source: EU Startup)

4. McKinsey’s Prediction for Berlin:
McKinsey had predicted, that Berlin is looking strong to provide more than 1,00,000 new jobs and may become the new leader for Startup hub in Europe. The geographical location of Berlin in Europe adds to the strategical benefits for making available the Eastern Europeans talent pool of Poland, Ukraine, Baltics & Czech Republic.

5. Cost of Living:
The cost of living in Berlin is lower than many other European cities particularly London. One can rent an area of 45 sq. m for 550 Euros which is quite reasonable. Other factors which attracts founders to this city is food, utilities, public transport and fast internet at affordable rates for a Startups. Moreover, Berlin’s popular club environment adds to the quality of life that can be afforded by many.

Affordable cost of living, advanced business culture, young enthusiastic pool of talented software professionals, fresh ideas with a growing economy makes all favorable microclimate for Berlin’s Startup ecosystem. So, one can start his Startup and enjoy the fun both at same time in Berlin.

In short it is both competitive and fun to have your Startup set up in Berlin so what’s stopping you now?




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