The Green Startup Monitor concludes that 29 percent of all German startups can be classified as green startups last year, compared to just 21 percent two years earlier. The study applies relatively strict criteria. Startups to be considered 'green': 43 percent of all startups surveyed describe themselves as green. The energy and agriculture sectors have the highest proportion of green startups, each accounting for around two-thirds. In the textile industry, 61 percent of startups are classified as sustainable. David Hanf, deputy chairman of the Startup Association, says:
"The Green Startup Monitor 2022 clearly shows that startups with a positive ecological impact have established themselves at a high level in Germany. This is good news in the context of the necessary transformation towards a climate-neutral economic system, because speed and consistent implementation are now crucial. To achieve this, startups need target group-specific support, especially for growth companies that have the potential to sustainably transform markets in the spirit of a future that is fair to all generations."
37 percent of the green startups surveyed rate themselves as very innovative, 34 percent as innovative, and 24 percent as somewhat innovative. These values are significantly higher than those of all startups, where only 28 percent consider themselves very innovative, 37 percent as innovative, and 28 percent as somewhat innovative. The proportion of female founders, at 21 percent, is significantly higher than the 16 percent share of female startup founders among all startup founders.
Green startups find it harder to access venture capital
Green startups largely face the same challenges as their peers: Sales and customer acquisition represent the biggest obstacles, followed by product development and capital raising. However, unlike other startups, maintaining liquidity is a bigger problem than recruiting suitable staff. The result seems plausible at first glance: It's reasonable to assume that green startups can offer potential employees a stronger sense of purpose than traditional startups.
When looking at the financing sources of green startups, it is noticeable that they more frequently rely on their own savings (78 percent versus 73 percent), government funding (48 percent versus 42 percent), bank loans (20 percent versus 15 percent), and incubators and accelerators (17 percent versus 10 percent). However, green startups have less access to business angels (27 percent versus 33 percent) and venture capital (18 percent versus 22 percent).
