With its expansion to 11,000 square meters, Werk1 is gradually developing into a comprehensive campus for digital entrepreneurs. Robert Richter, CEO of Werk1, describes the goal at Pitch & People so:
Pitch & People Episodes
PITCH & PEOPLE Episode 12: Robert Richter
“We are planning a one-stop shop in the Werksviertel district, where startups, scaleups, investors, accelerators, magazines and even municipal services will work closely together. The idea is actually to create a district where we will have two to three hundred startups and scaleups by 2030.”
This should not only be achieved through that Plant1 The goal is not only to grow the MTZ itself, but also to expand the surrounding area: A second MTZ specifically for scaleups is planned, and further enablers such as the Start2 Group or additional accelerators are expected to move into the district. The plan envisions an ecosystem where founders only need to take a few steps for mentoring, financing, visibility, or administrative processes. Richter describes this vision as a large, cohesive area that leverages efficiency gains, pools resources, and fosters even stronger cohesion through shared event and meeting spaces – an innovation district that will become one of the Europe's most vital startup hubs is to be.
Too few unicorns
Too many regulations, too little room for maneuver. In the video podcast, Robert Richter also discusses Europe's missed opportunities. A key factor, he says, is the strict antitrust law, which prevents mergers and thus makes growth impossible.
"We hinder ourselves every day from creating champions here, and everything ends up being bought up by foreign companies."
explained Judge.
Richter also sees a systemic problem with regard to artificial intelligence. While the US gives young companies a lot of freedom before regulating, in his view Europe sets overly restrictive limits too early.
"For example, the AI Act, where I want to regulate everything in advance, and where one then somehow hopes that the startup will now form, that is simply unrealistic."
Europe is initially distrustful of innovation and creates too many regulations before a company can even develop.
The results of this policy are particularly evident in global competition: The US has created "approximately 800 unicorns in the last 20 to 30 years," while Germany has produced just 27. For Richter, this is a clear indication that the continent is stifling its own growth opportunities. His appeal is therefore clear: Europe needs "strong guardrails, but also spaces in which creativity and entrepreneurship can develop freely." Only in this way can the region once again compete more ambitiously on the international stage and finally produce its own tech giants.
Flexibility is essential for internationally competitive startups. However, labor laws, reporting requirements, transparency registers, and other regulations hinder teams during their most critical phase. Founding teams therefore need the option, at certain times, to work 60 or 70 hours a week – not permanently, but situationally and voluntarily.
Why Munich is still booming
Despite the economic slowdown, global uncertainties, and a regulatory environment that hinders many startups, Munich is currently experiencing remarkable momentum, according to Robert Richter. He even predicts that 2025 will be an exceptionally strong year for startups and investments. While the last few years have been rather subdued, Werk1 is now registering a noticeable upswing.
"We have significantly more startups this year than in previous years,"
so Judge.
At the same time, Munich remains a highly regarded location for investors. The region has a reputation for being stable, reliable, and quality-oriented – an environment where venture capital is reluctant to be lost. Despite global uncertainties, there is still a lot of capital in the market, and interest rates are not high enough to deter investors from tech investments.
In addition, there is an interesting counter-trend: Economic downturns lead to more startups. When the opportunity costs for highly qualified professionals decrease because starting salaries or secure job prospects are less attractive, the interest in starting a business often increases.
Many people who have long considered starting their own business are now taking the plunge. Not despite the uncertain situation, but precisely because of it. At the same time, there is a growing political will to tap into new sources of capital. Richter points to the decision in the state parliament that foundations will be allowed to invest more easily in venture capital in the future. In his estimation, this step could mobilize additional private capital.
Despite all the challenges, Munich is thus facing an unusually positive outlook: more startups, more capital, and a growing willingness to invest in future technologies. According to Richter, the city could even achieve a new record year for venture capital inflows in 2025.
The interplay of a strong ecosystem, growing willingness to start businesses and political openness makes Munich, in his view, a location that is currently performing exceptionally well in comparison to other European countries.
