EYIf London is the traditional technology startup capital in Europe, Berlin is “the new kid on the block”. Record-breaking investments rounds, a growing number of publicly recognized IPOs, the public maturation of startups – the German startup world is buzzing. This week EY published their report: “Liquidity meets perspective: Venture Capital and Startups in Germany 2015“. In his foreword to the report, GTEC MD Benjamin Rohé sets out why. Read the full foreword and EY report here.

Indications include the €2.5bn sale of Nokia HERE to German carmakers and the ripple effect of the people involved going on to use their experience and newfound capital to advise and invest in startups. The success of Jamba! and growth of Rocket Internet, or “Rocket Business School” as its known for the number of employees who go on to found their own businesses, are similar.

Then there is the second high-tech Gründerfonds, set up four years ago by major German players, such as BASF, Bosch, Daimler, and Deutsche Telekom, alongside the German Federal Government and KfW (total volume €288m), plus KfW’s planned co-investment fund to strengthen the venture capital market. Big corporations are investing too, looking for profits from fast-growing markets and newly adopted technologies, as well as leveraging partnerships with technology startups – as GTEC promotes, connecting industry, research and startups.

Seeded by tax breaks and government involvement in venture capital, and drawing on foreign talent – the opportunity in Germany for local and international venture capital right now is unique and the tech scene is booming. Berlin’s homegrown, market and government independent startup ecosystem is strong and here to stay. And the proof is in the money raised – a staggering €1.97bn for startups (compared to London’s €1.35bn in 2014).

Read the full EY report here.

 

 

 

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