The Digital Association Bitkom surveyed them about their financial situation. The results: 61 percent of startups need to raise fresh capital within the next two years, and 12 percent need five million euros or more. A third need between one and five million euros, and 17 percent need less than one million euros. Around a quarter don't need any venture capital, and 15 percent are unable or unwilling to provide information.
The vast majority of Startups Companies requiring capital are confident that they will be able to successfully complete their pending financing rounds. 42 percent consider this very likely, and 37 percent consider it somewhat likely. Only 14 percent say this is currently rather unlikely, and three percent even consider it very unlikely.
At the same time, however, 79 percent of startups note that investors are significantly more cautious due to the economic situation. Currently, only 17 percent of startups say there is sufficient venture capital for startups in Germany. A year ago, the figure was 32 percent.
Bitkom President Ralf Wintergerst says:
"Growth financing is no longer as easy as it was a few years ago. This particularly affects startups that need to ramp up their business quickly and are dependent on external investors to do so."
And further:
"Startups are extremely important for digital Germany. Our startup ecosystem, which we have built over the years, needs capital."
Forty-five percent of the startups surveyed complain that they have difficulty obtaining loans for their business model. Almost one in three startups is considering going abroad because of a lack of capital in Germany. Forty-five percent believe it is possible to raise fresh capital through an IPO. Of these, 32 percent are considering a listing in Germany. 31 percent can imagine going public on a foreign stock exchange.
