Berlin is known worldwide as a Hotspot for Startups. Now, however, the competition from France, has said the German capital about to be lapped, a study shows. But there is still hope for the end of the year.
Paris has overtaken Berlin as the founder of the metropolis and in European terms is now in second place. Unchallenged in Europe London remains. This shows the “start-up Barometer” of the auditing and consulting company EY (Ernst & Young). The study, an analysis of the investments in European Startups, evaluated only companies, which are not older than ten years.
In the first half of 2019 Startups from the French capital, raised some 2.2 billion euros from investors. So, they passed the great growth companies from Berlin, who collected EUR 2.0 billion to one.
In the year 2018, Berlin had claimed to be 2.6 billion euros in Investments in start-UPS just ahead of Paris (2.5 billion). The French capital had Holt but rapidly expanded. In 2017 you had been significantly behind in Berlin.
France stock response: The “Station F”, South of the capital, as the home for the start-up scene.
The hope of the big money
Growth companies in their Expansion, often on money of investors, as they write at the beginning of the rule a profit. Fund and large enterprises invest venture capital in promising companies in the hope that their business is to enforce ideas and lush profits out of them.
Smaller countries are catching up
“The financing Boom for new companies continues,” said Hubert Barth, managing Director of EY in Germany, for the presentation of the study. “More and more Startups receive fresh capital, and also the sums invested climbing to record levels. Very large Deals are booming: across Europe, the number of transactions in which 100 million euros and more are gone, and from twelve to 26 more than doubled.”
“The European Startup Ecosystem has become in the first half of the year even stronger,” said EY Partner Peter Lennartz. “The momentum is impressive and continues to reach smaller markets that were not yet in focus. The number of financing rose rounds, for example, in Sweden by 19 percent in Switzerland to 25 percent in Hungary to 22 per cent.”
La Grande Startup Nation
In France, the strong support for start-UPS effect, show Lennartz said. The government was pursuing the clear goal of making France the leading Startup hub in Europe by bureaucratic hurdles for young would be mined entrepreneurs and the state, bringing investors and founders together.
President Emmanuel Macron 2017 had declared to France with the help of state of the “Startup Nation” make. He also recruited in the case of large French companies with Investments in local Startups.
In the “Station F” in the 13. Located in the heart of Paris to blur the areas of ‘Work’ and ‘Relax’.
More Venture Capital
Founders in Germany are falling more into the focus of policy, but it is often difficult to lavish cash injections. The promotional Bank KfW estimates that the funding gap in the early growth phase, up to 600 million euros per year.
The Federal government wants to expedite the start-up culture with state-supported venture capital Fund. She had called with the KfW also provided a platform for Startups to connect founders and investors to improve advice and facilitate financing.
There’s still hope for Berlin
All the political uncertainties, but Despite the number one in Europe London remains. There, the founders collected 5.7 billion Euro and were also in the number of financing rounds with 323 clear in the front. “The Brexit-Chaos seems to be the London-based Startup to scene, hardly any harm,” said Peter Lennartz. Every third Euro of venture capital flowed out in the first half of the year at the Startups there.
The British Internet-satellite Startup OneWeb got in the period, also the largest cash injection in Europe (1.1 billion euros). The Berlin-based travel platform, GetYourGuide was 428 million to place five, the Smartphone Bank, N26 (266 million) followed. Overall, European Startups received in the first half of the year the record sum of EUR 16.9 billion, 62 percent more than in the same period last year.
It was an enormous amount of capital in the market that needed to be created. “Investors focus on more Mature business models and enterprises that have proved that they can achieve their goals,” says Lennartz. The prospect of a successful exit via a stock market increase speed or re-sale the willingness, on the finishing straight to invest again large sums of money.
In the second half of the Boom had stopped. In Germany, there was a strong third quarter, so there is hope for Berlin.
dk/RF (EY, dpa)