A startup is much more than a simple business. Each unique company has the ability to change the world, bringing innovation and technology to various cities around the world.
While the startup world used to be centred around Silicon Valley, millions of entrepreneurs are looking elsewhere as it becomes easier to expand into the global market. At the heart of the European economy, lies Germany, buzzing with entrepreneurial activity, a growing economy, and opportunity for those ready to start the next multinational business.
An Intro to Starting A Business in Germany
You’ll be glad to know that Germany doesn’t require you to carry a local passport or even a diploma if you want to launch your startup here. Talent is welcomed from all over the world. In addition, when hiring staff in Germany, the local labor market offers a wide-range of highly skilled talents.
With multiple startup pockets flourishing throughout the nation, Germany has rapidly become one of the greatest startup countries in the world. In this article, we’ll analyze the top cities to start a business in Germany help you figure out which city offers you the best opportunity to launch a successful company.
Berlin: Germany’s Vibrant Capital
Considered the Silicon Valley of Europe, Berlin is the number one startup city not just in Germany, but in all of Europe. Home to Germany’s first-ever unicorn startup N26 and the globally active venture capital firm Rocket Internet, the city positions itself as a buzzing hub for talented entrepreneurs looking to turn their dreams into reality.
Berlin’s unique startup scene offers a variety of advantages, especially geared towards tech startups and IT companies. Filled with several young companies, the startup scene here boasts of inclusiveness and diversity.
In addition, living costs are very affordable compared to other major startup cities around the world. Plus, the city is flooded with investors just waiting for the next big startup to fund. Plus, if you need a long-term loan, they come with decent fixed interest rates with repayment suspensions for the first 1 to 2 years.
Munich: Where Tradition Meets Future
As the third most populous German city behind Berlin and Hamburg, Munich is experiencing rapid population growth. According to Muenchen.de, Munich’s population is expected to exceed 1.7 million by 2030.
The city is fueled by its major automotive industry and serves as an opportunity base for those looking to get into renewable energy, networking, mobility, and power supply. Venture capitalists, business angels, and investor networks are flocking to the city as it continues to expand its growth.
As a result, the city is a hotbed for accelerators, builder labs, training, and startup events. The Munich Technology Center (MTZ) and Werk 1 serve the city as two of the top tech startup premises.
Frankfurt: Europe’s Financial Super-Hub
Though Berlin is the undefeated champ of European startups, there’s an underdog on the rise in the Euro startup scene.
As Europe’s finance hub, Frankfurt is a training ground for startups in the financial industry. Entrepreneurs will find investors, angels, and venture capitalists ready and able to take on financial tech startups. Frankfurt is also well-equipped to serve startups niched within the engineering or automotive industries.
As Frankfurt’s expat scene continues to see rising numbers, it will only become more startup-friendly over the years for internationals looking to start a business in Germany.
Cologne: The Up-Coming City
Unlike Berlin, which is enormous in population, Cologne offers a less-stressful startup scene with a population one third the size.
Cologne is an up and coming German startup city within a 3-hour drive to France, Belgium, The Netherlands, and Luxembourg. With many bigger corporations making their home here like Electronic Arts, Rimowa, Lufthansa, and Deutsche Telekom, Cologne is fueled by a strong economy.
Plus, it has a vibrant startup culture, which is centered around media, technology, fashion, and sports-related startups.
Conclusion
Overall, Germany offers some of the greatest opportunities in Europe when starting a business or expanding with an existing company into new markets. As the heart of Europe’s economy, Germany makes it easy to setup a startup as an international, especially since with such a simple visa system. Nevertheless, setting up a business in Germany or registering a company locally can be a hassle. The Berlin-based corporate and employment specialist Universal Hires, has been supporting foreign startups with their business plans to operate successfully onsite.
When trying to determine which city is right for your startup, remember to take into consideration your startup’s niche. Each city offers a unique ecosystem of startups and existing companies looking for innovate solutions. Therefore, pick a city that will support your business growth and offer networking opportunities to expand your company’s reach.