The corona crisis has slowed down the start-up scene in Germany significantly. According to the KfW development bank, the number of innovation or growth-oriented young companies fell to 47,000 in 2020, after having been 70,000 in the two previous years.
The corona crisis has slowed down the start-up scene in Germany significantly. According to the KfW development bank, the number of innovation or growth-oriented young companies fell to 47,000 in 2020, after having been 70,000 in the two previous years.
“In an environment characterized by high levels of uncertainty, the number of newly founded start-ups could not compensate for the fundamentally high rate of closure in this segment,” said the KfW banking group in Frankfurt.
Looking ahead, KfW chief economist Fritzi Köhler-Geib expressed her confidence: “Although the Corona crisis left its mark on start-ups in 2020, we assume that the start-up scene will change so quickly after this exceptional year will develop like the years before. “
KfW defines start-ups as companies that were founded no more than five years ago and whose founders work there on a full-time basis. The characteristic of such companies is therefore that they are willing to innovate or want to grow strongly.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
