The German Startup Monitor (DSM) 2023 is out. In total, the German Startups Association (Startup-Verband) together with PwC Germany surveyed nearly 2,000 founders. All results have been compiled in the 11th German Startup Monitor, the most comprehensive study of Germany’s startup landscape. We wanted to know: What does this year’s DSM 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 tight economic situation. On a national average, the figure rises slightly to 18.9, while at startup hotspots like Munich the average is significantly higher at 41.3. However, at hotspots, the slowdown in new hires is more visible than 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 surveyed startups had to lay off employees in the last 12 months, while 56.1 percent were able to make new hires. Here too, Munich is doing well compared to other startup ecosystems: Only 12.6 percent had to lay off staff here and 60.9 percent were able to hire new employees.
Founder forge TU München
The TU München brings forth particularly many founders together with RWTH Aachen and WHU – Otto Beisheim School of Management. 4.5 percent of surveyed founders name TU München as their alma mater, only RWTH Aachen achieves an even better figure with 5.7 percent.
Functioning networks
The question of whether founders would take the step of starting a new company again is answered positively by nine out of ten respondents. However, one third of those surveyed are planning to relocate. About half of this group can imagine founding a company at a different location in Germany. Munich is a favored startup location for many – alongside Berlin.
Functioning networks are crucial for a successful startup location. That’s why the DSM also wanted to know from respondents how many startup founders they have on average in their circle of friends. Nationwide, this figure is 7.3, in Munich it is 10.8. Only in Berlin do founders have even more other founders in their circle of friends, namely 12.2.
The complete German Startup Monitor 2023 can be viewed here.
