Berlin is City for Investment
The survey issued by Ernst & Young determined that 208 Berlin-based businesses were receiving venture capital in 2017. The overall investment volume in Germany rose by 88 per cent to 4.3 million Euro. 46 per cent, i.e. nearly half of the total sum, went to startup businesses based in Berlin. Thus, the German capital ranked first also in the last year, well ahead of other federal states such as Bavaria, Hamburg and Baden-Württemberg. The appeal of the capital city is as strong and steady as ever for young entrepreneurs, and it even continues to grow extraordinarily strong.
This fact was also reflected in the “Top 5 – Transactions in Germany” supported by the start-up barometer, all of which were made in Berlin:
- The Berlin-based online meal delivery service Delivery Hero registered an investment sum of 387 million Euro in the month of May, and 423 million Euro in the month of June
- The online marketplace for vehicles Auto1 was funded with 360 million Euro in the month of May
- The food delivery service Hello Fresh received a growth capital of 268 million Euro in the month of November
- A total sum of 143 million Euro was invested into the Soundcloud music streaming platform
As in the previous year, the e-commerce sector remained a very popular investment target in 2017 with a nationwide financing volume of 1.7 billion Euro. 1.8 billion Euro went to the capital city. In the whole of Germany and Berlin, the automotive and food sectors were way ahead of the rest regarding the number of financing rounds and investment volume. Besides these important industries, the following Berlin sectors obtained substantial funding:
- Fintech companies with a funding of 295 million Euro
- Software & Analytics businesses with a funding of 153 million Euro
- Mobility businesses with a funding of 141 million Euro
- Media & entertainment businesses with a funding of 268 million Euro
The only area where the federal state of Baden-Württemberg has caught up with Berlin in terms of funding volume was the health sector; and the federal state of Thüringen overtook the capital with a total investment sum of 115 million Euro. Nevertheless, with a funding volume of 114 million Euro, Berlin still achieved an impressive result.
This development is, among other things, mainly due to the ever-growing and stimulating startup culture in the German capital. It is a culture that makes every effort to further expand its extensive infrastructure, and whose innovations are being driven and supported. Furthermore, new and even multidisciplinary contacts are established. This applies not only to investors and young entrepreneurs, but also to startup and well-established businesses from a range of sectors. Project Future initiated by the Senate Department for Economics, Energy and Public Enterprises arranges promotion initiatives and contests to ensure that this culture continues to flourish and grow.
Leitung Kreativ- und Medienwirtschaft, Digitalwirtschaft, Projekt Zukunft