Germany

Berlin #16

Berlin has organically grown into the European hub for IoT and Blockchain, where tech talent and industry giants jointly solve problems to drive technological and economic growth.

Nico Gramenz
CEO of Factory Berlin

Ecosystem by the Numbers

EARLY-STAGE FUNDING
$2.1 bn
GLOBAL AVG.
$687 m
ECOSYSTEM VALUE
$33 bn
GLOBAL AVG.
$28.6 bn
MEDIAN SEED ROUND
$980 k
GLOBAL AVG.
$671 k
MEDIAN SERIES A ROUND
$6 m
GLOBAL AVG.
$4.7 m
SOFT. ENGINEER SALARY
$63 k
GLOBAL AVG.
$46 k

Fintech

The Fintech ecosystem is home to many startup support organizations including FinLeap, a VC firm focusing on Fintech investments and operating H:32, a large hub for European Fintech startups. Incumbents like Deutsche Bank and Axel Springer run innovation labs and accelerator programs. Fintech unicorn N26 raised $470 million in a Series D2 round in July 2019 while Raisin, featured on a list of the top 50 Fintech startups across Europe in 2018, raised $114 million in a Series D round in 2019.

AI, Big Data & Analytics

Berlin has more AI startups than any other German ecosystem, and they are expected to make more than $2.2 billion in revenue by 2025. Internationally renowned centers such as the German Research Center for Artificial Intelligence and the Berlin Center for Machine Learning, are based here. The government will invest $3.4 billion over the next six years to develop the country’s research and AI capabilities. Merantix, an AI-driven venture studio, raised a $28 million Series A in January 2020.

Reasons to Move Your Startup to Berlin

Attracting millennials

Berlin attracts entrepreneurs and talent from all over the world. Nestpick ranked Germany’s capital as the best city in the world for millennials, based on factors like business ecosystem, essentials, openness, and recreation.

COVID-19 Policy

Germany’s “Kurzarbeit” wage subsidy scheme allows businesses to prevent layoffs in times of economic downturn. Under this scheme, the government covers 60% the difference of the employee’s salary, thereby allowing staff to remain on the job at reduced hours and salary.

Incentivizing R&D

By 2025, Berlin aims to increase the ratio of R&D investment to 3.5% of GDP and invest $17.4 billion in key research areas.

Selected Startup Organizations

Factory Berlin
Finleap
Gruenderszene
Microsoft Ventures
Project A Ventures

Get connected

Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.