Company: founders see the location Germany negative

The domestic start-up scene sees the location Germany more negative. Only 57 percent give him positive reviews in a current survey by the startup association. That is four percentage points less than a year ago. In addition, fewer and less respondents are now saying that they would start again. With a good 78 percent, the number is still high, but a year ago it was 84 percent, in 2023 even almost 90 percent.

Nevertheless, Germany is becoming popular in a direct comparison with the USA. In the meantime, almost 40 percent of the local founders see the Federal Republic as more attractive. That is 6 percentage points more than in 2024.

Thanks to Trump in comparison

“The Course of the American government is playing in the cards,” says Verena Pauster, CEO of the startup association. “Using this momentum is not only decisive from an economic, but also from a political point of view to reduce technological dependencies.” Among other things, the “startup monitor” names the tariffs and political uncertainties in the United States as additional risks “while Germany seems comparatively stable”.

At the German location, the founders praise the proximity to universities in particular. On the other hand, you have an advantage when it comes to bureaucracy and faster procedures as well as access to capital.

When accessing to risk capital, Germany is only 18th among the 40 largest economies, “detained by the USA and even behind European neighbors like France,” says the startup association. “We finally have to mobilize more capital,” emphasizes Pauster.

Strong increase in defense

In terms of capital, however, start-ups that deal with defense technology can already be clearly increased. Investments there rose from 1.3 million euros in 2020 to 878.5 million euros in the first eight months alone, the survey said.

This year’s “Startup Monitor” is based on 1,846 online surveys and is created in cooperation with the IFO Institute. It is not representative.