Munich Startup
How Munich’s city council views the startup ecosystem

How Munich’s city council views the startup ecosystem

Munich city council

Munich city council

Saskia Doll

Saskia Doll

Is Munich a good location to start a startup? What measures can city politics take so that even more founders settle here? We’ll be asking representatives of Munich’s city council these and other questions on July 17 at the Munich Startup Festival. In advance, we’ve already asked the participating factions for their assessments.

June 19, 2024

5 min. read time

In recent years, Munich has developed into a real hotspot for innovative startups. With a vibrant startup scene, many tech companies, and renowned research institutes, Bavaria’s capital offers young entrepreneurs plenty of opportunities. But what comes next? What plans and visions does Munich’s city council have to promote this growth? That’s exactly what will be discussed on July 17 at the Munich Startup Festival. Under the title “Visions for the Munich ecosystem: questions and answers from the city council,” four city council representatives will answer questions from the startup community. To get an idea of what to expect, we’re taking a closer look at the different positions of the factions right now.

What is the current state?

We asked the four participating city councillors: If you wanted to start a startup, in which city would you do it? What does Munich offer that other German cities don’t?

On this, most of the factions agreed. Felix Sproll, city councillor of the SPD / Volt faction, summarizes:

“Within the EU, I would always choose Munich when starting a startup. Munich offers excellent infrastructure, strong networks, and a high quality of life that is attractive to skilled workers from around the world. In addition, our city is an important financial and technology center with many potential partners and investors.”

Only Fritz Roth, city councillor of the FDP Bavaria Party, saw things completely differently:

“Mainz would be a good location. Munich is not. Munich has lost significant potential over the past four years. […] The administration seems completely indifferent to whether a new company comes here or not. This sluggish and complacent politics is fatal, especially since there are other obstacles from state and federal level on top of it.”

What plans does the city council have?

We wanted to know: What plans do you have to support young entrepreneurs and offer good conditions so they continue to settle in Munich?

Manuel Pretzl, faction chair of the CSU with Free Voters, says:

“A problem in this city is and remains the shortage of space and the associated high rents. We in the CSU / FW in the city council recently requested to expand, densify, and allocate municipal and thus cheaper commercial real estate in Munich to business founders.”

The proposal from Sebastian Weisenburger, city councillor of the Greens – Rosa Liste faction:

“To ensure that especially the crucial future sectors and tech startups in Germany and Europe find good conditions in view of the current economic and political situation, a joint effort at the European level is needed. The previous good initiatives at EU and federal level must be significantly strengthened and better coordinated with each other.”

And Sproll (SPD / Volt) notes:

“[To support startups] what’s important for me is above all easier access to financing, the provision of subsidized office and work space, as well as networking events. At the same time, cooperations with universities and research institutes in the region should be intensified and simplified.”

What is missing in the Munich ecosystem?

Our last question: Which industries are underrepresented in Munich? What would you do to encourage more startups from this sector to settle here?

Roth (FDP Bavaria Party) explains:

“Clearly underrepresented are craft businesses and industrial manufacturing. While the business mix is broad, it’s overall too heavily weighted towards services.”

According to Roth, to promote craftspeople and industrial manufacturing, there would need to be significantly more mixed-use areas with space for workshops and manufacturing facilities, more affordable commercial space for startups, and better public transport connections to the surrounding area, including for goods transport.

Also Pretzl (CSU / FW) thinks:

“I believe Munich is wasting a huge potential in the combination of traditional craftsmanship and startups. Unfortunately, we hear from many craft businesses that current green-red politics makes life difficult for them. This will soon lead to us having people around the corner tinkering with air taxis and robots – but nobody left to repair a broken toilet. We should therefore also support startups in the crafts sector more, for example with appropriate spaces in industrial courtyards.”

The view of Weisenburger (The Greens – Rosa Liste):

“Munich has high rental and wage costs – which particularly affects crafts, retail, and the cultural and creative industries. With various initiatives, we’re trying to provide targeted support here: through commercial real estate optimization, digital craftspeople parking permits, piloting digitally bookable delivery and loading zones, measures to digitize retail, and with a dedicated municipal team for the cultural and creative industries that also helps with the search for space. A newly established navigator position in the KVR will help companies in the future find their way through the administrative bureaucracy.”

Whether it’s promotion, regulation, or international networking – the sometimes significantly divergent positions promise an exciting discussion round. Anyone who would like to submit their own questions can do so from now on via this form.

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