Five reasons to land your startup to Berlin
Forbes, TechCrunch and Bloomburg have all suggested that Berlin could be the next Silicon Valley.
In 2015, the city was declared the fastest-growing startup ecosystem in the world. There were 205 new financing rounds, 371 companies in Germany received venture capital and more than 2.1 billion was invested directly in Berlin. While these numbers may pale when compared to investments in Silicon Valley, Berlin is outpacing London and a handful of other startup hubs when it comes to total investment.
It’s only a matter of time until the Bay Area startups elbow their way in for a bit of the action, so what exactly are you waiting for? If you’re an Australian startup looking to go global, here are five reasons that make now the time to make your move to Berlin.
- Slow burn rate
The first reason to consider Berlin for your startup is that the city is really affordable when compared to other major tech cities. Berlin is notably cheaper than most cities in Western Europe, and according to Numbeo, the cost of living is 30 per cent less than Melbourne. The cost of living dictates that everything from overheads to employee wages are lower, and that means your burn rate for existing capital is slower. Unlike other cities where low pay translates to a lower quality of life, that’s simply not the case in Berlin.
- Few Unicorns, Strong Talent Pool
Berlin has all the benefits of being an up-and-coming city with an experienced talent pool. You’ll find a young workforce who are looking for the chance to work at, or collaborate with, a growing startup. Rather than competing with unicorns like Google, Facebook and AirBnB, you will be able to hire their alumni and get the best of both worlds – experience and an entrepreneurial attitude.
- Growth opportunities in a thriving scene
Does your startup already have a great team? Getting staff to relocate is never easy whether it is for the short or longer term, but when you’re offering them the opportunity to spend some time in a city with a great work-life balance, plenty of growth opportunities, and a thriving tech scene, the proposition gets a bit easier. Since reunification in 1989, Berlin has been consistently revered as one of the world’s coolest cities with hundreds of galleries, museums, and cultural venues. All this goes to say that employees are likely to find something that sets them on fire outside of work, and they’ll be able to bring this inspiration back into the office.
- Mature Startup Scene
Each year, Berlin hosts thousands of tech events. Major events like Disrupt Berlin and Tech Open Air draw over 20,000 attendees from across the world. Even on a quiet week, you’ll find plenty of meetups, workshops, and startup events worth attending. Looking to get out of ideation and onto the market? If you’re hoping to find funding, there’s no shortage of pitch events and matchmaking sessions either. Investors and VCs are flocking to Berlin to find startups and scaleups innovating in the Internet of Things, FinTech and Digital Health sectors. By being in Berlin, you will get all the benefits of being an early adopter while also stepping into a mature startup scene.
- Advantage for B2B Startups
Berlin has something on offer for startups across industries, but B2B startups will have significant advantage when it comes to relocating to Berlin. In recent years, German corporations have started to make innovation and digitisation a priority. Although big players in mobility and transportation (Daimler, EY, Audi, Deutsche Bahn) may have their headquarters in cities like Stuttgart and Dusseldorf, their innovation departments are based in Berlin. There are plenty of potential partnerships and investors waiting for you in Berlin.
Is your startup ready to make the move? At Austrade we offer market-ready startups and scaleups a 90 day residency in Berlin. It includes an office space in one of the best co-working communities in the city, introductions to a network of investors, mentors, and potential partners, and business consultancy.
Apply now for the Berlin Landing Pad.