Despite the global economic slowdown due to the coronavirus pandemic, the DACH startup ecosystem is showing strong and steady growth. As per a recent report, VC investment in startups in the (DACH region) has almost doubled to €2.4B from Q1 to Q3 2020. So, what gives Germany the relative extra edge when it comes to host startups?
There are a few simple yet substantial factors behind this:
De-centralized Digital Hubs
The prominent European economies have just one city as the face of economic development. For instance, London in the UK, Paris in France, and in the Netherlands there is Amsterdam. That’s not the case with Germany, the country comprises multiple Digital Hubs.
One might argue that Berlin and Munich still dominate the German startup landscape, but in recent times, multiple smaller hubs have emerged across the nation that offers value for specific industries. For instance, Stuttgart is more about futuristic industries while Hamburg is more inclined towards logistics. These sorts of smaller hubs offer exclusive access to cheaper resources and specialized talent.
Leading in Deep Tech solutions
Germany was ranked third globally after the US and China for the most number of deep tech startups. German startups have a keen inclination towards emerging and deep technologies like Artificial Intelligence, Machine learning, IoT, and beyond.
One big reason behind the unprecedented growth rate of such ventures is the support from German academic institutions. Centers like the Fraunhofer Institute and The Strascheg Center for Entrepreneurship at the University of Applied Sciences Munich promote and propagate entrepreneurial aspirations through research and resources.
Call for collaboration
The growing startup ecosystem is eventually leading towards more opportunities to connect and accumulate forces on the regional and global levels as well. There have been several relevant and renowned collaborations in the past that have once again established Germany’s prowess in the global startup landscape.
Such collaborations are instrumental, especially for the tech industry. Be it commercial or consumer tech, collaborating together opens new horizons of possibilities and creates a perfect symbiosis for the partners.
Tech startups of today are finding solace with their Technology partners. While startups bring new ideology and unconventional approaches (in some cases) to the table, technology partners hold the key to sustain and scale those revolutionary ideas. Hence, this new-found setup of startups being backed by technology partners seems to be the bright and right way to move ahead in the future.
Gateway Digital GmbH has a long legacy of providing industry-leading technology t startups and helping them to sustain and scale. Gateway Digital GmbH is a pioneer when it comes to supporting, sustaining and making startups succeed.
Our commitment and consistency in delivering cutting-edge technology make us the preferred choice for any startup’s technology partner. We excel in emerging as well as established technology while enabling digital transformation for enterprises.
We create digital roadmaps that are backed by global outreach. We empower our startup partners to develop Minimum Viable Products (MVPs) through a lean and agile product testing approach.
Along with that, we have access to a colossal knowledge and talent pool with more than 1600 professionals excelling in technologies of all sorts. We deploy Agile and DevOps product development approaches while ensuring high Return of Investments (ROI) for our clientele.