In 2017, almost 3 billion euros of venture capital were invested in Berlin's startups. This accounted for 69 percent of the total venture capital that flowed into Germany, says the "Startup Barometer" by Ernst & Young. According to the KPMG Enterprise’s Venture Pulse Report, 2018 also got off to a very strong start with over 930 million euros in the first quarter, of which 475 million went to the Auto1 Group, 135 million to the FinTech company N26, 60 million to solarisBank and 54 million to the Frontier Car Group. This means that four of the ten largest investments in Europe went to Berlin-based companies. According to estimates by the German Startups Association, around 30% of all startups are based in Berlin.
The starting conditions are advantageous: office and location expenses are still lower than in many other major cities. Berlin attracts young, highly qualified people from all over the world.
In the last 10 years, a good 47,000 new jobs have been created in the digital economy, with a total of almost 90,000 in 2017 and annual growth rates of 10-15%. This is primarily due to startups. But more and more corporate groups are coming to Berlin with their digital divisions or are establishing them in the capital in the first place.
According to a nationwide comparison, Berlin start-ups are the most international, having a share of 33.7% of foreign employees. The high quality of life at comparably low living expenses, the vital scene life and international environment are the reasons for young entrepreneurs to implement their business ideas here.
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
Updated: November 2018