According to a recent Bitkom study, one in four startups is considering moving abroad. The young companies cite the lack of growth capital here as the main reason.
For the Online survey from Bitkom Research A total of 321 IT and internet startups in Germany were asked how they estimate their capital needs for the next two years, whether they have already met these requirements or whether they still need fresh capital. They were also asked to assess how likely the startups believe it is to raise the necessary capital for the next two years through financing rounds.
Financing problems for startups in Germany
According to the study, the average capital requirement of German startups is €3.2 million for the next two years. In 2017, founders estimated significantly less (€2.5 million). Furthermore, only one in five startups (18 percent) report that this capital requirement is already covered. Just two years ago, 26 percent had sufficient capital. The need depends on the size of the company. While startups with up to three employees report a deficit of only €770,000 on average, larger companies with four to nine employees are already short €1.3 million, and startups with 10 to 19 employees are even short €3.6 million.
Bitkom President Achim Berg on the financing problems of German startups:
"We have created a variety of funding opportunities for startups in Germany in recent years. However, growth financing with single- or double-digit million amounts remains difficult."
He continues:
"The one-sided focus on the start-up phase is damaging Germany as a startup location. The German Digital Fund announced in the coalition agreement could at least be a first step toward better financing."
Result of the Bitkom study: One in four startups sees opportunities abroad
While most startups (81 percent) expect to find investors to provide capital for the next two years, one in four startups (27 percent) is considering going abroad. This is because young companies consider financing conditions outside Germany to be better.
