An article by Alessandra Maino
With the Brexit vote, one of the most important decisions for the future of the European Union and its member states was recently made. The initial consequences of Brexit—such as the collapse of the pound and stocks, and the resignation of British Prime Minister David Cameron—are already being felt, but the medium- to long-term consequences of Britain's exit will only become apparent in the next two to five years.
One thing is certain: Brexit will have far-reaching consequences for Europe's markets and economic dynamics. For the German startup scene, the unexpected political turnaround is, according to Christoph Gerlinger, CEO of the German Startup Group, "good newsGerlinger's opinion is shared by many German entrepreneurs: following the departure of Europe's most important startup hub, London, positive effects are widely expected for the German tech startup scene. Berlin, in particular, is viewed as a potential next startup hub in Europe. Florian Nöll, Chairman of the German Startups Association, also agrees: "Berlin will be the winner and London the loser.”
Is Berlin the only German city with the potential to take on London's role? What about Munich?
Although the German media has so far focused on Berlin and its potential rise to become Europe's startup capital, there are many other cities in Germany that have great digital potential to transform into important startup centers in the coming years - Munich in particular.
Munich as a digital location
According to a 2014 EU study, Munich ranks first among European cities that attracted the most venture capital in the technology sector. Furthermore, Munich is – after Berlin – the city with the highest startup density in Germany. Among the most successful startups based on the Isar River are the comparison portal Check24 and the car sharing service DriveNow. In addition, the international consulting firm Deloitte — based on meaningful data — Munich, Germany's number one digital location.
Munich has a lot to offer young companies and their founders: first and foremost, proximity to investors, as many venture capitalists and business angels are based in Munich. Furthermore, the city on the Isar River offers various consulting and coaching services for those wishing to start a business, various funding opportunities, and international events, including the three-day Bits & Pretzels Festival. The presence of numerous established industrial companies—and thus potential customers—and highly qualified young professionals from universities round out the offerings.
Whether the Munich or Berlin startup scene will experience the greatest growth after Brexit remains to be seen. What is certain is that the tech industry represents a major opportunity for Germany, and that the startup scene will gradually play a larger role in business and innovation. Florian Nöll comments:
"Startups are now an integral part of the economy, the labor market, and society. They will become the medium-sized businesses of tomorrow, and I am certain that among the 6,000 startups in Germany today are already tomorrow's global market leaders."
Alessandra Maino
Alessandra Maino is Digital Marketing Manager at 99designs.
