Jobs, optimism and artificial intelligence: This is what makes German startups tick

Bitkom surveyed German startups on a wide range of topics. The study provides interesting insights into the state of the startup scene.

148 German tech companies took part in the digital association’s survey.Startups participated – a not particularly large, but probably still meaningful sample. The companies were surveyed between the beginning of April and mid-June, at a time when the Russian invasion of Ukraine and high inflation were already on everyone's lips. The majority of the surveyed companies are in the early stage (56) or the growth phase (28) and employ an average of 20 people.

The results are largely positive: 80 percent of startups plan to hire new staff, 12 percent expect no change, and virtually no startups plan to downsize. On average, the young companies have five vacancies. According to 42 percent of companies, the situation for startups in Germany has improved in the past two years. Another 40 percent see no change, and only 12 percent complain about a deterioration in the startup scene. 89 percent of founders would start a startup again, given their current experiences.

“Startups are pioneers in the use of technology”

According to the study, startups are not only the originators of technical innovations, but also particularly frequently implement new technologies themselves. 72 percent use cloud computing, and 12 percent plan to use it. 48 percent use big data and data analytics, and another 33 percent are considering using them. Artificial intelligence is already being used by 43 percent of startups, and 40 percent are planning to. In the economy as a whole, only 37 percent of companies rely on data analytics, and 11 percent on artificial intelligence.

The actual use and planning differ particularly sharply when it comes to blockchain: while only 9 percent actually use the technology, another 35 percent plan to do so.

"Startups are pioneers in the use of technology. They therefore also play an important role for Germany as a technology location,"

says Bitkom President Achim Berg.

"We should make much greater use of the innovative strength in all areas of business and government. Public administration should make extensive use of startup solutions and ensure that startups are considered for tenders. And small and medium-sized businesses, as well as corporations, should definitely draw on the expertise of founders and collaborate with them."

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