Latest / Deep Tech Germany – AI, Robotics & Frontier Innovation by Startuprad.io™ / 2024 German Startup Monitor: B2B Focus, Green Economy & Funding
Transcript
- WEBVTT 1 00:00:05.759 --> 00:00:07.220 Welcome to startuprad.io. 2 00:00:09.360 --> 00:00:12.880 Your podcast and YouTube blog covering the German 3 00:00:12.880 --> 00:00:16.555 startup scene with news, interviews, and 4 00:00:16.555 --> 00:00:17.695 live events. 5 00:00:20.235 --> 00:00:23.915 Hello, and welcome, everybody. This is Joe from start up rate dot I 6 00:00:23.915 --> 00:00:27.535 o, the authority on German, Swiss, and Austrian startups. 7 00:00:28.470 --> 00:00:32.170 Are you a startup founder, executive, or investor 8 00:00:32.229 --> 00:00:35.210 looking for insights into the future of startups in Germany? 9 00:00:35.670 --> 00:00:39.350 Today, we're diving into the 2024 Deutsche 10 00:00:39.350 --> 00:00:42.894 Startup Morning tour, which reveals fascinating trends 11 00:00:42.894 --> 00:00:46.655 about b to b sustainability and challenges chain 12 00:00:46.735 --> 00:00:50.495 shaping the startup system. Stay tuned to find out how 13 00:00:50.495 --> 00:00:53.475 your startup can thrive amidst these 14 00:00:54.210 --> 00:00:57.989 changes. Let's see a few facts here from the core results. 15 00:00:59.650 --> 00:01:02.790 79.8, so almost 80%, 16 00:01:03.809 --> 00:01:07.430 are looking for an improved business climate in 17 00:01:07.570 --> 00:01:10.385 2024. 74.7% 18 00:01:11.325 --> 00:01:14.685 of German startups now focus on b to b 19 00:01:14.685 --> 00:01:17.745 customers. That means more than 20 00:01:18.205 --> 00:01:21.885 almost 3 fourth, more than, 2 21 00:01:21.885 --> 00:01:25.290 thirds of the startups in Germany 22 00:01:25.750 --> 00:01:29.290 are b to b, are basically our home turf. 23 00:01:30.150 --> 00:01:33.909 Whether it's scaling your business, securing those 24 00:01:33.909 --> 00:01:37.725 all important b to b clients, or navigating the ever 25 00:01:37.725 --> 00:01:41.485 tightening funding landscape, you've got the insights you need to stay 26 00:01:41.485 --> 00:01:45.325 ahead. Let's kick things off with some 27 00:01:45.325 --> 00:01:49.005 numbers. 74.7% of startups in Germany are 28 00:01:49.005 --> 00:01:52.649 now generating revenue primarily from b to 29 00:01:52.649 --> 00:01:56.409 b customers. This is not only the large entities, but 30 00:01:56.409 --> 00:02:00.009 also the very big share of German 31 00:02:00.009 --> 00:02:03.710 economy that is SMEs, small to medium enterprises, or in Germany, 32 00:02:04.635 --> 00:02:08.475 kleinund Mittelstandischer underniem. This show this 33 00:02:08.475 --> 00:02:12.075 shows a shift from consumer focused models to 34 00:02:12.075 --> 00:02:15.915 stable long term relationships that b to b clients 35 00:02:15.915 --> 00:02:19.700 offer, especially in sectors like SaaS and 36 00:02:19.700 --> 00:02:20.840 enterprise software. 37 00:02:23.459 --> 00:02:27.060 The first take is b2b is the 38 00:02:27.060 --> 00:02:30.760 future of startups at least here in Germany. We're seeing companies 39 00:02:30.900 --> 00:02:34.254 like Celonis and Personio, 2 of the 3 most 40 00:02:34.254 --> 00:02:37.935 valuable German startups making their mark in this space 41 00:02:37.935 --> 00:02:41.315 by focusing on offering high value scalable 42 00:02:41.855 --> 00:02:45.320 solutions. Secondly, profitability 43 00:02:45.700 --> 00:02:49.540 is now front and center, 78.8%. So, 44 00:02:49.540 --> 00:02:52.600 again, almost 80% of start ups are prioritizing 45 00:02:52.980 --> 00:02:56.420 profits over rapid growth, especially in 46 00:02:56.420 --> 00:03:00.020 today's economic climate. This is a major shift from the 47 00:03:00.020 --> 00:03:03.754 growth at all costs mentality we've seen in the past 48 00:03:03.754 --> 00:03:07.454 few years. And 3rd, sustainability 49 00:03:07.995 --> 00:03:11.135 is still on the rise. Nearly half of all startups 50 00:03:11.594 --> 00:03:15.114 identify as part of the green economy. They are 51 00:03:15.114 --> 00:03:18.640 focused on eco friendly solutions, which 52 00:03:18.640 --> 00:03:22.480 isn't just good for the planet. It's also a major draw 53 00:03:22.480 --> 00:03:25.780 for investors who are prioritizing ESG. 54 00:03:26.480 --> 00:03:30.160 Question for you. What's been the biggest challenge for your start up this 55 00:03:30.160 --> 00:03:33.815 year? It is finding clients, securing funding, 56 00:03:33.815 --> 00:03:37.655 or maybe scaling up? Let me know in the comments below. And if 57 00:03:37.655 --> 00:03:41.415 you're finding this video helpful, please give it a 58 00:03:41.415 --> 00:03:45.220 thumbs up. And don't forget to hit that subscribe button for more 59 00:03:45.220 --> 00:03:48.900 insights on startups and entrepreneurship. To 60 00:03:48.900 --> 00:03:52.340 give you a little idea about the diversity of 61 00:03:52.340 --> 00:03:55.800 this German startup ecosystem, a lot 62 00:03:56.019 --> 00:03:59.805 of news coverage is always 63 00:03:59.865 --> 00:04:03.645 focused on Berlin. And I'll have to say increasingly 64 00:04:04.025 --> 00:04:07.005 on Munich as you can see from this graphic here. 65 00:04:09.065 --> 00:04:12.285 Only around let let's make it round. 66 00:04:13.390 --> 00:04:17.230 19% of startups that participated in the survey, 67 00:04:17.230 --> 00:04:21.010 not the total startups, but the startups that participated in the survey 68 00:04:21.470 --> 00:04:25.090 are based in Berlin. That's here. And 90% 69 00:04:26.225 --> 00:04:30.065 are in Nordheim Westfalen, which 70 00:04:30.065 --> 00:04:33.205 is the most populous state within Germany. 71 00:04:33.665 --> 00:04:37.025 Also, Bavaria is doing pretty good with almost 72 00:04:37.025 --> 00:04:38.965 17%. And 73 00:04:40.909 --> 00:04:44.270 Martin Wurttemberg, known for, places like 74 00:04:44.270 --> 00:04:47.949 Stuttgart being the home of Mercedes, Porsche, and 75 00:04:47.949 --> 00:04:51.009 so on and so forth, with a big machine building, 76 00:04:52.030 --> 00:04:55.635 industry there as well has 12.5% of the 77 00:04:55.635 --> 00:04:59.255 startups in there. And then there are a few also ran 78 00:04:59.315 --> 00:05:02.695 which only have 0 point something percent. Also, 79 00:05:03.955 --> 00:05:06.855 the state of Hessen is doing a respectable 80 00:05:07.475 --> 00:05:11.210 middle field position with 6 0.4% on the start 81 00:05:11.210 --> 00:05:14.889 ups participating in this survey. Let's 82 00:05:14.889 --> 00:05:18.569 go to the top 10 industries. There 83 00:05:18.569 --> 00:05:22.325 is information and communication technology. Medtech 84 00:05:22.385 --> 00:05:25.445 and health care is number 2 already with 11%. 85 00:05:26.545 --> 00:05:30.005 Food and consumer consumer goods is 7.6%. 86 00:05:31.025 --> 00:05:34.720 Edtechs make up more than 5%. Energy 87 00:05:34.720 --> 00:05:38.479 and electricity, this is way you'll find a lot of the green 88 00:05:38.479 --> 00:05:42.180 startups. They are ranking around 5%. Mobility and logistics 89 00:05:42.560 --> 00:05:46.400 as well. Not surprising that since Germany is in the core of Europe and 90 00:05:46.400 --> 00:05:50.045 there's a lot of traffic going on, plus Germany is 91 00:05:50.585 --> 00:05:53.805 still very heavy on industry, so there has to be a lot of goods 92 00:05:54.025 --> 00:05:57.725 transported around. HR tech also 93 00:05:57.785 --> 00:06:00.285 almost at 5% with 4.9%. 94 00:06:01.740 --> 00:06:05.120 Chemistry and biology, 4.5%. Keep in mind 95 00:06:05.180 --> 00:06:08.880 that health care, especially 96 00:06:09.420 --> 00:06:12.860 biotech startups, that would be more in 97 00:06:12.860 --> 00:06:16.620 the biology cluster here, depending on how you 98 00:06:16.620 --> 00:06:20.354 define those individual startups, are important in 99 00:06:20.354 --> 00:06:24.055 Germany. As well as the chemical industry makes up a big chunk 100 00:06:24.115 --> 00:06:27.955 of the German industry as it is right now. Industrial goods 101 00:06:27.955 --> 00:06:31.655 make up 3.9%, and the prop techs 3.4%. 102 00:06:34.050 --> 00:06:37.270 The business models here are not that surprising. 103 00:06:38.130 --> 00:06:41.650 More than a third are software as a service. Almost 104 00:06:41.650 --> 00:06:45.490 12% are online platforms. A little bit 105 00:06:45.490 --> 00:06:49.065 over 10% are software development. And 106 00:06:49.065 --> 00:06:51.965 now here comes the catch, only 6.4% 107 00:06:52.825 --> 00:06:56.605 of the startups, again, participating in 108 00:06:56.745 --> 00:07:00.470 this survey. In terms 109 00:07:00.470 --> 00:07:04.010 of digital business models, they are still, 110 00:07:04.950 --> 00:07:08.170 ecommerce startups. So that means less than 7% 111 00:07:08.550 --> 00:07:12.150 of the startups in Germany. Let's let's make the 112 00:07:12.150 --> 00:07:15.815 assumption that it's a pretty pretty good translation, this survey 113 00:07:15.875 --> 00:07:19.395 of the real, startup economy here. Less than 114 00:07:19.395 --> 00:07:23.235 7% of the startups are still in ecommerce. Keep in 115 00:07:23.235 --> 00:07:27.075 mind a few years ago, what you had, like, all the big ecommerce startups 116 00:07:27.075 --> 00:07:30.659 everybody talked about from Berlin, they are now taking 117 00:07:30.720 --> 00:07:33.060 a back seat to other 118 00:07:35.360 --> 00:07:39.039 industries. And in terms of 119 00:07:39.039 --> 00:07:42.400 like hybrid digital and physical model, there is of 120 00:07:42.400 --> 00:07:46.115 course developed technology development and production, 121 00:07:46.255 --> 00:07:47.555 a big chunk. Almost, 122 00:07:50.095 --> 00:07:53.775 almost a 4th. And in terms of 123 00:07:53.775 --> 00:07:57.135 simply analog startup models, there is, 124 00:07:57.455 --> 00:08:00.220 services. Still a pretty big chunk here. 125 00:08:06.120 --> 00:08:09.640 In terms of employment, we have seen 126 00:08:09.640 --> 00:08:13.125 that startups here have been cutting back on 127 00:08:13.125 --> 00:08:16.185 headcount. This is also something you can see in the statistics. 128 00:08:16.805 --> 00:08:20.025 Most startup either are just the founders. 129 00:08:20.805 --> 00:08:24.405 It's usually around a 4th 25%, a 130 00:08:24.405 --> 00:08:27.125 quarter, that are 131 00:08:28.289 --> 00:08:31.970 taking this again. In terms of employment, you have seen 132 00:08:31.970 --> 00:08:35.730 that startups, have big 133 00:08:35.730 --> 00:08:39.409 headcounts, and they've been drastically cutting back on 134 00:08:39.409 --> 00:08:43.075 headcounts, especially the big startups. But what you can see in the survey 135 00:08:43.075 --> 00:08:46.855 here is that almost a quarter of start ups 136 00:08:46.915 --> 00:08:50.055 don't have any employees. They are 137 00:08:50.435 --> 00:08:53.894 mostly just the founders. Then you have, like, below 138 00:08:54.195 --> 00:08:57.850 5 employees. It's around 30%. Then you 139 00:08:57.850 --> 00:09:00.990 have 5 to 9 employees, it's around, 140 00:09:01.610 --> 00:09:05.130 I would say 18%. And you have, 10 to 141 00:09:05.130 --> 00:09:08.270 20 employees, which made up almost 142 00:09:08.490 --> 00:09:12.214 20% last year, 2023, but have been 143 00:09:12.214 --> 00:09:15.815 going down to a little bit over 16% this 144 00:09:15.815 --> 00:09:18.935 year. Then you have the, 145 00:09:19.815 --> 00:09:23.300 the next bracket with 30 to almost 50, 146 00:09:23.300 --> 00:09:26.900 49 employees. They also have been 147 00:09:26.900 --> 00:09:30.500 going down from almost 5% to a little bit over 3 a half 148 00:09:30.500 --> 00:09:33.880 percent. And the 50 and more employees, 149 00:09:34.340 --> 00:09:37.884 they have also been going down. So in terms of larger 150 00:09:37.944 --> 00:09:40.504 employment, you have seen the, 151 00:09:43.865 --> 00:09:47.625 the effect of the tech drop rack 152 00:09:47.625 --> 00:09:51.450 or however you wanna call it. The long list of layoffs 153 00:09:51.510 --> 00:09:55.110 we have seen from all across Germany, Austria, and Switzerland in the 154 00:09:55.110 --> 00:09:56.170 last few month. 155 00:10:00.310 --> 00:10:03.930 Surprisingly, that is an effect you have seen in the 156 00:10:04.225 --> 00:10:08.065 startups with war employees. But actually only 157 00:10:08.065 --> 00:10:11.825 around 14% of the startups say 158 00:10:11.825 --> 00:10:14.325 they have less head count. 159 00:10:15.905 --> 00:10:18.885 Again, around 30% has been 160 00:10:19.620 --> 00:10:22.760 steady and more than half, almost 161 00:10:23.220 --> 00:10:26.980 50 over 55 percent have been growing in terms 162 00:10:26.980 --> 00:10:30.680 of head counts. That is attributable 163 00:10:31.220 --> 00:10:34.835 to the smaller startups, hiring the people getting 164 00:10:34.835 --> 00:10:38.675 laid off, it's easier for them to hire. Plus, we do 165 00:10:38.675 --> 00:10:42.455 hope that also their business is going much, much 166 00:10:42.835 --> 00:10:46.595 better. Again, founding in a team is 167 00:10:46.595 --> 00:10:50.260 very successful, as it has been in the 168 00:10:50.260 --> 00:10:54.020 past. The founders have 169 00:10:54.020 --> 00:10:57.720 been a little bit older with, 170 00:10:59.300 --> 00:11:03.095 the biggest chunk made up of people between 2534 171 00:11:04.115 --> 00:11:06.615 and the 2nd biggest chunk between 3544, 172 00:11:09.235 --> 00:11:12.835 the founders below 35 have been declining for more 173 00:11:12.835 --> 00:11:16.640 than 10%. Quick question for you. What's been 174 00:11:16.640 --> 00:11:20.400 the biggest challenge for you this year? Is it 175 00:11:20.400 --> 00:11:24.180 finding clients, securing funding, or maybe 176 00:11:24.240 --> 00:11:27.920 scaling up? Let me know in the comments below. And if you're 177 00:11:27.920 --> 00:11:31.675 finding this video helpful, please give us a thumbs up and don't 178 00:11:31.675 --> 00:11:35.194 forget to hit that subscribe button for more insights on 179 00:11:35.194 --> 00:11:38.654 startups and entrepreneurship. Another surprising 180 00:11:39.035 --> 00:11:42.555 fact we have found is 181 00:11:42.555 --> 00:11:46.370 that in the past, especially during the very early stages of 182 00:11:46.370 --> 00:11:50.070 the Berlin startup, ecosystem, the WHO, 183 00:11:50.690 --> 00:11:54.290 Otto Beisheim Schule Schule, Otto 184 00:11:54.290 --> 00:11:58.130 Beisheim School of Management in Wallander close to Copland has been 185 00:11:58.130 --> 00:12:01.945 the absolute champion in that. Now the number 186 00:12:01.945 --> 00:12:05.485 1, founder university they come from is the technical 187 00:12:05.625 --> 00:12:09.305 university Munchen. The the second 188 00:12:09.305 --> 00:12:13.145 one is the RWTH Aachen, which is 189 00:12:13.145 --> 00:12:16.900 a very technical university focused on machine 190 00:12:16.960 --> 00:12:20.640 and automotive building. They're famous for that. Next 191 00:12:20.640 --> 00:12:24.480 one is University Cologne. Then the WHU comes 192 00:12:24.480 --> 00:12:28.240 in. And then we have a few surprises, including number 193 00:12:28.240 --> 00:12:31.605 5, Technical University of Dresden. Then we have 194 00:12:31.605 --> 00:12:35.285 Technical University Berlin. The LMU in 195 00:12:35.285 --> 00:12:39.045 Munich, Ludwig Maximilians Universit8. Another surprise is 196 00:12:39.045 --> 00:12:42.589 number 8, Universitie Manheim. Number 9, 197 00:12:42.810 --> 00:12:46.410 Karlsruhe Institute of Technology, KIT, formerly known as 198 00:12:46.410 --> 00:12:50.089 Technical University Karlsruhe. And then we have another surprise for 199 00:12:50.089 --> 00:12:53.630 me is the technical is the University Paderborn. 200 00:12:54.615 --> 00:12:58.315 Not surprising, the Humboldt University in Berlin, it's one of the big universities 201 00:12:58.455 --> 00:13:02.235 there, and there's a big ecosystem there. But also the Technical 202 00:13:02.375 --> 00:13:06.075 University of Dortmund has been a big surprise here. 203 00:13:06.630 --> 00:13:10.310 Now let's dive a bit deeper. One of the more concerning insights from the 204 00:13:10.310 --> 00:13:14.070 monitor is that only 37.5% of 205 00:13:14.070 --> 00:13:16.970 startups report having good collaboration opportunities 206 00:13:17.510 --> 00:13:21.275 with established companies. This is a challenge especially 207 00:13:21.275 --> 00:13:25.035 when partnerships can help you scale and build trust and keep in 208 00:13:25.035 --> 00:13:28.715 mind the large percentage of startups that 209 00:13:28.715 --> 00:13:32.340 are focusing on b to b. We are also seeing that 210 00:13:32.500 --> 00:13:35.960 deep tech and AI driven solutions are becoming crucial. 211 00:13:36.420 --> 00:13:40.180 With 11.4% of startups focusing on deep tech, this 212 00:13:40.180 --> 00:13:43.940 sector is rapidly growing in importance. AI isn't just a 213 00:13:43.940 --> 00:13:47.480 buzzword anymore. It's becoming the backbone of many startups. 214 00:13:49.445 --> 00:13:52.985 Take for example HR Tech Unicorn 215 00:13:53.125 --> 00:13:56.745 Pasonio, a German SaaS company that's grown by focusing 216 00:13:56.885 --> 00:14:00.725 on simplifying HR processes for small and medium 217 00:14:00.725 --> 00:14:03.785 sized enterprises. By offering real 218 00:14:04.140 --> 00:14:07.980 tangible value to its b to b clients, it has become one of the 219 00:14:07.980 --> 00:14:11.520 fastest growing startups in Germany. Something 220 00:14:12.140 --> 00:14:15.680 we at starterbrite. Io always had at the core 221 00:14:16.325 --> 00:14:19.925 is b to b startups. But what's fascinating in this 222 00:14:19.925 --> 00:14:23.625 graphics here is that it has always been around 223 00:14:24.645 --> 00:14:28.405 at least 2 thirds of the markets focusing on b 224 00:14:28.405 --> 00:14:32.050 to b clients in the German startup scene now 225 00:14:32.050 --> 00:14:35.750 going up to almost 75%. In the same take, 226 00:14:36.129 --> 00:14:39.350 the share of b to c startups 227 00:14:39.649 --> 00:14:42.870 is slowly declining from formally 28. 228 00:14:43.545 --> 00:14:47.325 A little bit over 28% in 2018 to below 229 00:14:47.385 --> 00:14:50.285 20%. This survey 230 00:14:50.905 --> 00:14:54.045 and the business to govern b to g 231 00:14:54.585 --> 00:14:58.120 is steadily has been steadily hovering 232 00:14:58.660 --> 00:15:02.440 around 5% with now hitting a 5.9% 233 00:15:03.460 --> 00:15:07.240 here. Also, an interesting effect is 234 00:15:07.855 --> 00:15:10.675 health care is the top 235 00:15:13.135 --> 00:15:16.195 future, the top interesting industry 236 00:15:17.455 --> 00:15:20.835 as seen by the founders, followed by education, 237 00:15:21.215 --> 00:15:24.800 energy, industry, mobility and logistics, 238 00:15:25.740 --> 00:15:29.580 public administration, agriculture. And the 239 00:15:29.580 --> 00:15:32.960 the fintech bank and insurances, they only make up 240 00:15:33.420 --> 00:15:36.915 10 point 4% of the replies when 241 00:15:36.915 --> 00:15:40.535 asked what is the future industry as feed 242 00:15:40.595 --> 00:15:44.055 from a startup founder. And then we have, food, 243 00:15:45.315 --> 00:15:47.335 retail, and media. 244 00:16:05.765 --> 00:16:09.545 What I personally also found interesting is what you could see here, 245 00:16:09.765 --> 00:16:13.305 a growth by more than 30% on 246 00:16:13.365 --> 00:16:17.070 which startup is counting itself among the green 247 00:16:17.070 --> 00:16:20.610 economy started in 2019 around 36%, 248 00:16:21.310 --> 00:16:25.149 and now almost reaching, reaching a little bit over 249 00:16:25.149 --> 00:16:28.770 48%, almost 50% of startups associate 250 00:16:28.830 --> 00:16:32.625 themselves with the green economy. This is also quite 251 00:16:32.625 --> 00:16:36.465 fascinating. That shows the desire 252 00:16:36.465 --> 00:16:39.445 or the demand for external capital. Meaning 253 00:16:40.625 --> 00:16:44.370 in 2023, almost 70% have been 254 00:16:44.370 --> 00:16:47.970 looking for external funding and 70 255 00:16:48.290 --> 00:16:51.890 almost 75% are now looking in 2024 for 256 00:16:51.890 --> 00:16:55.190 external funding. The largest groups 257 00:16:55.330 --> 00:16:59.154 of of answers is 258 00:16:59.295 --> 00:17:02.975 less than €500,000 as well as 259 00:17:02.975 --> 00:17:06.815 somewhere between €500,200,000,000. So you 260 00:17:06.815 --> 00:17:10.335 could say the vast majority of startups in Germany is looking for 261 00:17:10.335 --> 00:17:13.820 funding below €2,000,000, then we do have 262 00:17:14.280 --> 00:17:17.900 23% looking for 2 to €10,000,000 263 00:17:18.839 --> 00:17:22.599 and around 5.7, almost 264 00:17:22.599 --> 00:17:25.625 6%, only are looking for €10,000,000 265 00:17:26.404 --> 00:17:28.345 and more in external funding. 266 00:17:39.380 --> 00:17:43.220 We've seen that almost 75% of start ups that reply 267 00:17:43.220 --> 00:17:46.740 to the survey are looking for external funding, most of 268 00:17:46.740 --> 00:17:50.360 them below 2,000,000. The but the preferred 269 00:17:50.835 --> 00:17:54.434 funding option is actually government funding followed by 270 00:17:54.434 --> 00:17:57.875 business angels, followed by venture capital, followed by 271 00:17:57.875 --> 00:18:01.255 strategic investors, and only somewhere 272 00:18:01.475 --> 00:18:05.230 around, less than 5% are looking 273 00:18:05.230 --> 00:18:08.450 for venture debt funding. This is an interesting 274 00:18:08.670 --> 00:18:12.429 craft in terms of, how 275 00:18:12.429 --> 00:18:16.049 the German startup scene has been growing and matured. 276 00:18:16.505 --> 00:18:20.045 That means in 2014, we had 1 unicorn 277 00:18:20.265 --> 00:18:23.885 and 2,000,000,000 startup investments across Germany. 278 00:18:24.745 --> 00:18:28.045 In 2021, we had a high point with 26 279 00:18:28.105 --> 00:18:31.750 startups and 15 point 8 €1,000,000,000 280 00:18:32.130 --> 00:18:35.430 in startup investments. And now for 2024 281 00:18:36.210 --> 00:18:39.830 forecasted for the rest of the year, we are looking at 32 282 00:18:39.970 --> 00:18:42.230 unicorns here in Germany and €7,100,000,000 283 00:18:44.690 --> 00:18:48.355 in startup investments. It is also interesting to 284 00:18:48.355 --> 00:18:51.955 score who has the 285 00:18:51.955 --> 00:18:55.315 most unicorns in terms of cities. Berlin with 286 00:18:55.315 --> 00:18:59.160 18, Munich with 8. Interestingly, the little town of 287 00:18:59.160 --> 00:19:02.700 Poisal, home to Volocopter, with 1, Khamnitz, 1, Tristan, 288 00:19:02.840 --> 00:19:06.300 1, Frankfurt am Main, 1, and Cologne, 1. 289 00:19:06.840 --> 00:19:10.540 Compared to other international hubs, for example, San Francisco 290 00:19:10.600 --> 00:19:14.040 has more than a 170 unicorns, New 291 00:19:14.040 --> 00:19:17.225 York, still almost a 120. Beijing, 292 00:19:17.684 --> 00:19:21.304 64. London, 43. Shanghai, 38. 293 00:19:21.445 --> 00:19:24.965 And Berlin comes in at number 10 in this global 294 00:19:24.965 --> 00:19:28.485 count, with 18 unicorns, and 295 00:19:28.485 --> 00:19:32.210 Munich, a number 26 with 8 unicorns. 296 00:19:33.070 --> 00:19:36.750 In the past, Germany had a reputation for 297 00:19:36.750 --> 00:19:39.410 not being very startup friendly. Surprisingly, 298 00:19:40.590 --> 00:19:44.295 more than 80% of the founders who would 299 00:19:44.455 --> 00:19:47.895 found again would found again in Germany, almost 300 00:19:47.895 --> 00:19:51.515 84%. More than 80% would also 301 00:19:51.735 --> 00:19:55.355 found in Berlin again, and almost 85% 302 00:19:55.895 --> 00:19:59.670 would found the company again in Munich. What we 303 00:19:59.670 --> 00:20:03.370 also find interesting is how much 304 00:20:03.670 --> 00:20:07.270 more positive the perception of the business 305 00:20:07.270 --> 00:20:10.855 climate is for start ups versus the 306 00:20:10.855 --> 00:20:14.695 general economy. You may remember that we always have 307 00:20:14.695 --> 00:20:18.294 the, efoggechaftklima index, the 308 00:20:18.294 --> 00:20:21.735 IFO business climate index that is, 309 00:20:22.135 --> 00:20:25.850 given monthly in our monthly startup news. What you can 310 00:20:25.850 --> 00:20:29.310 see here in this graphic is basically 311 00:20:30.090 --> 00:20:33.690 that, it has always been much much 312 00:20:33.690 --> 00:20:36.670 better with the startups. For example, in 313 00:20:39.025 --> 00:20:42.405 in 2019, 8.8%, 8.8 314 00:20:42.625 --> 00:20:45.845 points for the general 315 00:20:46.145 --> 00:20:49.125 IFO business climate versus 50.52.7% 316 00:20:52.490 --> 00:20:56.110 for the start ups. But what you can also see that 317 00:20:56.410 --> 00:21:00.010 in 2022, 20 3, and 24, the general 318 00:21:00.010 --> 00:21:03.470 business climate according to IFO has been negative. 319 00:21:03.690 --> 00:21:07.055 It has been positive for the startups, but coming down 320 00:21:07.055 --> 00:21:10.515 from 51.6% down to 321 00:21:11.375 --> 00:21:14.995 39% according to this survey. So, 322 00:21:15.695 --> 00:21:19.455 the mood is better in the startup part of the 323 00:21:19.455 --> 00:21:23.230 German economy, but it is also declining, and 324 00:21:23.230 --> 00:21:26.590 it has been declining since 2021 according to 325 00:21:26.590 --> 00:21:30.210 the German startup monitor. Another very interesting 326 00:21:30.830 --> 00:21:34.530 piece of information here is what political party 327 00:21:34.830 --> 00:21:38.325 those entrepreneurs are preferring with a 328 00:21:38.325 --> 00:21:42.085 vast lead for, the 329 00:21:42.085 --> 00:21:45.925 green party, 41.3%, followed 330 00:21:45.925 --> 00:21:48.505 by FTP that are the free democrats. 331 00:21:49.350 --> 00:21:52.330 Usually, the party of entrepreneurs, but it can only, 332 00:21:53.590 --> 00:21:56.890 convince 21.4% in this survey 333 00:21:57.030 --> 00:22:00.790 followed by, part 334 00:22:00.790 --> 00:22:04.235 of former party, the party of former chancellor Angela 335 00:22:04.235 --> 00:22:07.995 Merkel with 15.8%, followed by a very 336 00:22:07.995 --> 00:22:11.455 new party called Volt, which is not yet, 337 00:22:12.154 --> 00:22:15.789 in Bundestag, followed with a mere 5.5% 338 00:22:16.330 --> 00:22:19.390 for SPD. That is the party of the current chancellor, 339 00:22:20.010 --> 00:22:23.770 Olaf Mackle, followed by the right wing AFD, but 340 00:22:23.770 --> 00:22:27.289 with only 3%, followed by left party with 341 00:22:27.289 --> 00:22:30.030 only 2.2%. So that means, 342 00:22:31.184 --> 00:22:35.024 the, 2 of the 3 parties that 343 00:22:35.024 --> 00:22:38.245 make up the current German government are very favorable 344 00:22:39.024 --> 00:22:42.784 if seen by the entrepreneurs, but the party of the 345 00:22:42.784 --> 00:22:46.630 chancellor is not doing that well. Guys, that was it for 346 00:22:46.630 --> 00:22:50.390 me. A very, very short trip through a lot of data. Everybody 347 00:22:50.390 --> 00:22:54.150 would like to learn more. You can go on our blog, start up rate 348 00:22:54.150 --> 00:22:57.830 dot I o forward slash block, or just go on 349 00:22:57.830 --> 00:23:01.654 start up rate dot I o and click on the blog. We'll have series of 350 00:23:01.715 --> 00:23:04.934 10 articles on the German startup monitor 351 00:23:05.475 --> 00:23:08.615 coming up for you in the next 10 working days. 352 00:23:09.475 --> 00:23:13.075 If you found value in today's video, don't forget to give us a 353 00:23:13.075 --> 00:23:16.770 thumbs up. And if you're interested in more content on growing 354 00:23:16.770 --> 00:23:20.610 out your startup or insights from the startup ecosystem, hit that 355 00:23:20.610 --> 00:23:24.290 subscribe button and check out my other videos. Thanks for watching. I'll 356 00:23:24.290 --> 00:23:25.670 see you in the next episode. 357 00:23:30.705 --> 00:23:34.085 That's all, folks. Find more news, streams, 358 00:23:34.465 --> 00:23:37.285 events, and interviews at www.startuprad.i0. 359 00:23:40.340 --> 00:23:42.440 Remember, sharing is caring.