Almost all German startups are opening up to employee participation models. According to the “Startup Report 2025” by the digital association Bitkom, 40 percent already use appropriate instruments, with another 47 percent planning to do so. Only 8 percent categorically rule out employee participation. Virtual shares are most common, followed by stock options and actual shares.
Employee retention as a competitive advantage
One third of startups include only executives. 41 percent additionally involve selected employees, while 23 percent offer a model for all employees. Bitkom President Ralf Wintergerst emphasizes:
“Startups are in sharp competition for talent with established companies and international competitors. They usually cannot compete with high fixed salaries, but they can involve their employees in future success and thus reach exactly those who believe in the founding vision.”
The survey of 152 tech startups makes clear: bureaucracy (63 percent), sales and customer acquisition (61 percent), and capital raising (52 percent) remain the biggest challenges. The average venture capital requirement is 2.5 million euros. 79 percent of startups with capital requirements believe it is likely they will raise the funds within the next two years.
AI becomes standard – politics polarizes
Artificial intelligence is now standard. 82 percent of startups use AI, with 63 percent in internal processes and 62 percent in products. At the same time, 63 percent criticize excessive regulation that hinders innovative development in Europe.
There is also polarization when it comes to founding role models. For 17 percent, Elon Musk remains a role model, while 59 percent believe he damages the reputation of tech startups. Only 3 percent wish for politicians modeled after Donald Trump in Germany.
The full report also sheds light on the economic situation, founding experiences, and the startup scene’s assessment of current politics. The “Startup Report 2025” is available for download on the website of the digital association.
