The number of founders in Germany fell significantly in 2016. This was the result of the KfW Start-up Monitor 2016A new study by KfW now shows that the fewer founders have become more innovative.
However, the figures in the current analysis are somewhat older and refer to startups established between 2013 and 2015 that were still active in 2015. One of the key findings: Around one in five startups (191,448) offer digital products or services. This represents an increase of 61,448 compared to the previous year.
The growing proportion of digital startups is particularly interesting because digital companies are significantly more innovative than traditional startups. 121,000 digital founders stated that their offering is a national market innovation. For "non-digital" founders, this figure is only 51,000. Also interesting: 191,000 digital founders conduct their own research and development, compared to just 101,000 for conventional founders. Dr. Jörg Zeuner, Chief Economist of KfW, summarizes:
"'Digital' founders are twice as likely to innovate as 'non-digital' ones. They are more focused on 'new' things than other founders. This has a major impact on the competitiveness and development of the economy."
Economic role of digital founders
Digital companies also appear to be using new sales channels much more frequently and are therefore aiming for a much wider reach, according to the study: Seven out of ten digital founders are aiming for a supra-regional sales market, compared to only two out of ten non-digital companies.
Not surprisingly, young digital companies are more growth-oriented and therefore more frequently seek external capital: One in three plans to raise capital in the next two years (2016/2017), compared to only one in five traditional start-ups. Dr. Zeuner says:
"After the startup phase, 'digital' founders need appropriate follow-up financing to further expand their business activities for the international market. This must be ensured so that 'digital' companies can leverage their innovative power and fulfill their special economic role."
