The German Startup Monitor (DSM) 2023 is out. The German Startup Association (Bundesverband Deutsche Startups) and PwC Germany surveyed a total of nearly 2,000 founders. All results were summarized in the 11th German Startup Monitor, the most comprehensive study on the startup landscape in Germany. We wanted to know: What does this year's DSM have to say about Munich as a startup location?
Munich startups as job engines
According to the DSM, the average number of employees remains stable despite the rather tense economic situation. The national average is increasing slightly to 18.9, while in startup hotspots like Munich, the average is significantly higher at 41.3. However, the slowdown in new hires is more noticeable in the hotspots than in the national average: In Munich, the figure is 12.1 (2022: 15.8), while nationwide it is 8.0 (2022: 9.2).
14.5 percent of the startups surveyed had to lay off employees in the last 12 months, while 56.1 percent were able to hire new employees. Here, too, Munich compares favorably with other startup ecosystems: Only 12.6 percent had to lay off staff, and 60.9 percent were able to hire new employees.
Founders' Workshop at the Technical University of Munich
The Technical University of Munich Together with RWTH Aachen University and WHU – Otto Beisheim School of Management, it produces a particularly high number of founders. 4.5 percent of the founders surveyed cite TU Munich as their alma mater, with only RWTH Aachen University achieving a higher figure at 5.7 percent.
Functioning networks
When asked whether founders would take the step of starting a business again, nine out of ten respondents answered positively. However, one-third of respondents plan to relocate. About half of this group can imagine starting a business at another location in Germany. Munich, along with Berlin, is the preferred location for many founders.
Effective networks are crucial for a successful startup location. Therefore, the DSM also wanted to know how many startup founders they have on average in their circle of friends. Nationwide, the number is 7.3, and in Munich, it's 10.8. Only in Berlin do founders have more other founders in their circle of friends, namely 12.2.
The complete German Startup Monitor 2023 can be viewed here.
