Startups struggle to find suitable skilled workers and are also plagued by bureaucracy. Access to capital, on the other hand, appears to pose few problems, according to a recent study.
Holtzbrinck Ventures and the Frankfurter Allgemeine Zeitung surveyed 109 startups with 10 to 50 employees about their current situation. 105 companies participated in the survey. Around 43 percent have already raised between one and five million euros in capital, and about four out of ten have recently completed their seed round.
Only one in four startups report difficulties accessing financing. The data generally shows a correlation between a startup's stage of development and access to capital: the older a startup is and the more funding it has already raised, the easier it is to find fresh capital.
“I would never have thought that her opinion would be so negative.”
The study identifies Berlin and Munich as by far the most important German startup cities. Christian Saller, partner at Holtzbrinck Ventures and co-initiator of the survey, welcomes this finding. A functioning ecosystem requires a critical mass.
"In Berlin, we certainly have the largest talent pool, but also the greatest competition. In Munich, however, there is greater competition from the traditional companies that are strong there. We see the 'war for talent' practically everywhere."
Nearly two-thirds of the startups surveyed reported difficulty finding staff. These difficulties aren't limited to the initial stages of a startup, as a growing startup requires more staff.
Another obstacle to startup development appears to be the regulatory environment. Two out of three startups feel hampered by bureaucracy. Saller expresses surprise:
"You can't expect the founders to think regulation is beneficial. But I wouldn't have expected their opinion to be so negative."
