Almost all German startups are embracing employee participation models. According to the digital association's "Startup Report 2025," Bitkom 40 percent already use such instruments, and another 47 percent plan to do so. Only eight percent categorically rule out employee participation. Virtual shares are particularly common, followed by share options and real shares.
Employee retention as a competitive advantage
One-third of startups involve only executives. 41 percent also involve selected employees, while 23 percent offer a model for all employees. Bitkom President Ralf Wintergerst emphasizes:
"Startups face fierce competition for talent with established companies and international competitors. They generally can't offer high fixed salaries, but they can share their employees' future success and thus reach precisely those who believe in the startup's vision."
The survey of 152 tech startups reveals that bureaucracy (63 percent), sales and customer acquisition (61 percent), and capital raising (52 percent) remain the biggest challenges. The average venture capital requirement is €2.5 million. 79 percent of startups requiring capital consider it likely to raise the funds in the next two years.
AI establishes itself – politics polarizes
Artificial intelligence is now standard. 82 percent of startups use AI, 63 percent of which are in internal processes and 62 percent in products. At the same time, 63 percent criticize excessive regulation that hinders innovative developments in Europe.
There's also polarization when it comes to entrepreneurial role models. Elon Musk remains a role model for 17 percent, while 59 percent believe he damages the reputation of tech startups. Only three percent want politicians in Germany to follow Donald Trump's example.
The full report also examines the economic situation, startup experiences, and the startup scene's assessment of current politics. The “Startup Report 2025” is available for download on the digital association’s website.
