The central data basis of the Migrant Founders Monitor 2021 study is the German Startup Monitor (DSM). In total, data were collected from 354 founders with first- and second-generation migration backgrounds. Over half of the participants are first-generation migrants, meaning they were not born in Germany.
The Migrant Founders Monitor 2021 comes to the following key findings: With a share of just over 20 percent, founders with a migrant background play an important role in the German startup ecosystem. A large proportion of these founders bring with them a high level of expertise: 91 percent of them – compared to 84 percent for the entire ecosystem – have an academic degree, often in the STEM field. Furthermore, first-generation migrant founders are characterized by a strong startup mindset. This means they have a higher risk appetite, and 68 percent of them also aim for an exit. The DSM average is 59 percent.
Reduce linguistic, bureaucratic and administrative barriers
However, things are less successful in the areas of financing, networking, and cooperation. The study shows that first-generation migrant founders received an average of €1.1 million in external capital, compared to €2.6 million in the DSM average. This highlights structural and cultural barriers both within and outside the startup scene. Therefore, language, bureaucratic, and administrative hurdles must be further reduced—especially in the context of government funding programs and in communication with relevant authorities.
The majority of migrant founders and their startups are located in Berlin (21.2 percent) and North Rhine-Westphalia (26.6 percent). In Bavaria, the proportion of founders with a migrant background is 8.5 percent.
“Diversity is not an option”
Sophie Chung, CEO and founder of Qunomedical and board member of the startup association, is certain:
"Diversity is not an option, but a social necessity, and we shouldn't just focus on entrepreneurs. The promotion of entrepreneurial talent should begin in childhood: If we manage to remove the mental and practical barriers at a young age, we will unlock the enormous, previously untapped potential."
And Karl-Heinz Paqué, Chairman of the Board of the Friedrich Naumann Foundation for Freedom, adds:
"It's encouraging to see that migrant founders are contributing important impetus to the German startup ecosystem. To ensure their success in the future, they should receive more support in networking – for example, with academic institutions. A clear gap is evident here. Reducing bureaucratic hurdles can also help, especially since language barriers are often present among first-generation founders."
No more emergency start-ups, but opportunity start-ups
Gonca Türkeli-Dehnert, Managing Director of the Deutschlandstiftung Integration, says:
"In the past, start-ups by migrants were often forced into business because they had and still do less opportunities on the job market. Today, however, start-ups are generally opportunity-based, predominantly by people with academic degrees! To help them better leverage their ideas and innovative strength in Germany, we support them together with founders, managers, and investors with a migration background through the 2hearts mentoring program."
