The digital association Bitkom surveyed 172 tech startups about their financial situation. The result: 61 percent of startups need to raise fresh capital within the next two years, with twelve percent requiring five million euros or more. One third needs between one and five million euros, 17 percent less than one million euros. About a quarter doesn’t need venture capital, and 15 percent either can’t or won’t provide information on this.
The vast majority of startups in need of capital are optimistic about successfully completing their outstanding funding rounds. 42 percent consider it very likely, 37 percent consider it rather likely. Only 14 percent say it’s currently unlikely, and three percent consider it very unlikely.
At the same time, however, 79 percent of startups are noting that investors have become significantly more cautious due to economic developments. Currently, only 17 percent of startups say there is sufficient venture capital for startups in this country. A year ago, the share was still 32 percent.
Bitkom President Ralf Wintergerst comments on this:
“Growth financing is no longer as straightforward as it was a few years ago. Startups that need to scale their business quickly and are therefore dependent on external investors are particularly affected.”
And further:
“Startups are extraordinarily important for digital Germany. Our startup ecosystem, built up over many years, needs capital.”
45 percent of surveyed startups complain that they have difficulty obtaining loans with their business model. Almost every third startup is considering moving abroad because there isn’t enough capital in Germany. 45 percent believe it’s possible to raise fresh capital through an IPO. 32 percent consider going public in Germany as an option. 31 percent can imagine going to a foreign stock exchange.
