Eight out of ten startups (79 percent) stated in the survey that the economic development Investors has made them significantly more cautious. Seven out of ten companies (71 percent) will need capital in the next 24 months, averaging €2.3 million. This represents a decrease of almost a third compared to the previous year (€3.3 million). Only three percent of startups stated that they have no capital needs. A quarter (25 percent) could not or would not provide any information.
Seventeen percent of startups in need of capital have already secured financing for the next two years. However, more than three-quarters (79 percent) are still searching. A full 14 percent of them currently consider it unlikely that they will be able to raise the necessary funds. Niklas Veltkamp, member of the Bitkom management, says:
"Many startups have recently had to cut costs and increase their profitability, which has led to a decline in average capital requirements. However, investors' reluctance must not slow down the growth and international expansion of German startups. Politicians should also closely monitor developments in the coming months and take countermeasures if necessary."
Creating incentives for investors
While the launch of the DeepTech & Climate Fund and the European Tech Champions Initiative has laid the first foundations for further mobilizing private venture capital, the framework must be created to enable new investor groups to invest more in startups and benefit from their growth. Furthermore, Germany must become more attractive as a fund location, for example, by promptly implementing the planned VAT exemption for venture capital funds, similar to the practice in many other EU member states.
According to information from Bitkom Currently, only around a third (32 percent) of founders believe that there is sufficient venture capital in Germany. Around a third (34 percent) are even considering taking their startup abroad. An IPO is not currently an option for most startups. Only 31 percent consider an IPO a possibility in the future, and 25 percent could imagine doing so abroad.
