Countless accelerators, incubators, and business start-up centers are supporting startups. A recent study by the German Federal Ministry for Economic Affairs and Energy examines existing offerings and calls for more startup portals like Munich Startup.
The Institute for Innovation and Technology (IIT) has examined the support landscape for startups in Germany on behalf of the Federal Ministry for Economic Affairs and Energy. The study authors describe the current situation of the German startup scene as follows:
"The current startup scene in Germany is attracting increasing international attention. And not just because it includes several unicorns, but because the number of successful startups has reached a level comparable to developments in the US, the UK, and Israel. Berlin, the Rhine-Ruhr region, and Munich are particularly outstanding in international comparison. Despite declining startup numbers, there remains a great need for support."
According to the study, a total of 1,130 offerings in Germany meet this need. 309 of these offerings are technology and incubator centers. The study particularly highlights the incubator center UnternehmerTUM at the Technical University of Munich, the
"Thanks to a very efficient offering, a highly professional structure, its integration into the university and economic structural context of the TUM, and major investments, it has been able to develop an enormous appeal."
The analysis also includes 141 startup and business plan competitions, 132 coworking spaces, 121 accelerators, 56 incubators, and 32 maker labs. Most incubators and accelerators are located in locations with a high density of startups, industry, and science, according to the study, and "thus particularly in structurally stronger, predominantly highly urbanized areas," especially Berlin, Munich, and Stuttgart/Karlsruhe.
Overall, the German startup support landscape is “very diverse and developing very dynamically”, ensuring “broad and effective support”
The competition is increasing
Organizations that support startups are increasingly competing with each other, regardless of their geographical distance:
"From the perspective of the experts interviewed, there is fundamentally a competitive situation between providers from Munich and Hamburg that cannot be eliminated by geographical distance."
More and more international providers are also entering the market, intensifying competition. Coworking spaces such as Mindspace and WeWork are examples of this. The Israeli provider Mindspace is already opening its third location in Munich. The American coworking giant WeWork comes to the Isar in the summer. The study also assesses this positively:
“Reputable providers in particular ensure further competitive pressure and create international visibility for the German startup ecosystem.”
In addition to international players, medium-sized, public and academic providers of support services for startups would also become more interesting.
Study provides clear recommendations for action
Among other things, the study criticizes the significant lack of transparency in the support landscape. On the one hand, this harms startups, as they "incur considerable search effort to identify suitable offers." On the other hand, the lack of overview makes it difficult for providers to monitor the market and differentiate themselves from other offerings.
Online portals such as Munich Startup are intended to provide relief and a better overview:
"In the view of the authors of this study, this also creates a considerable degree of transparency about the landscape in Munich. Given the general lack of transparency, such opportunities would be desirable in other places in Germany as well."
They also propose a nationwide portal that could draw on regional solutions.
Another proposal is to further promote and network support structures at scientific institutions. Furthermore, small and medium-sized enterprises should be encouraged to support startups and the quality of the services offered to startups should be further developed, for example through one-stop shops such as Single contact personsFinally, the study authors call for promoting the international networking of the German startup ecosystem and attracting foreign startups to Germany.
