In its current startup report for 2019, the development bank KfW lists, as in the previous year, the number of 70,000 German Startups This halted the increase from the previous two years. In 2017, 60,000 innovative or growth-oriented start-ups were identified; in 2016, the number of startups was 54,000.
However, there was a significant increase in the proportion of startups seeking to use venture capital to finance their growth. Almost one in five startups intends to raise venture capital—double the number from a year earlier.
Behind the 70,000 startups are approximately 127,000 founders. Founding teams consist of an average of 1.8 members. The proportion of women among founders is 19 percent.
“We are on the right track”
The study cannot yet make any statements about how the coronavirus crisis will specifically impact the startup scene in Germany. Currently, the situation has eased somewhat. At the same time, the coronavirus crisis is providing a boost for digital or internet-based business models. Fritzi Köhler-Geib, Chief Economist of KfW, says about the results of the study:
"The increase in the number of startups in recent years reflects the maturation of the startup ecosystem. This is a very positive development for Germany as a center of innovation. The coronavirus crisis is now placing a significant strain on this ecosystem, as more companies will likely fail and fewer startups will emerge."
Therefore, the startup aid from KfW and the Federal Government was important to stabilize the startup ecosystem.
"But the crisis can also act as a catalyst, especially for new digital business models. Founders can take advantage of this opportunity; the positive development of the German VC market will certainly help them do so. While Germany still lags behind internationally in startup financing, we are on the right track."
