Startups need capital for growth – and so it is not surprising that, according to a BITKOM survey of more than 200 startup founders, the majority will be dependent on fresh capital in the next two years. Only one in five founders sees no need for financing in the next two years.
How much financing is needed?
More than half of the young entrepreneurs surveyed would like to raise more than 1 million euros, and 5 percent even need more than 10 million euros. Munich startups estimate their financing needs at an average of 1.4 million euros. Startups from Berlin have the greatest capital needs, requiring an average of €3.3 million. The average capital requirement in Germany is €2.5 million within two years. “Growth financing remains the biggest challenge for startups in Germany”, says BITKOM Managing Director Dr. Bernhard Rohleder. “Especially when it comes to amounts over one million euros, German founders still have a very hard time getting money.”
However, Munich-based founders seem to have an easier time, as do startups in Berlin and Hamburg. They are significantly more optimistic than founders outside of startup capitals that they will raise the necessary capital. In Munich, this is certainly also due to the strong network between established companies and young entrepreneurs.
Further information about the study is available at BITKOM.
