The emergence of cryptocurrencies and blockchain technology has transformed the conventional approach towards money and transactions. Germany has evolved as a hub for companies operating in this domain, with Berlin being at the forefront of the crypto startup ecosystem. Despite encountering some obstacles, these startups continue to expand and recruit new talent. Hence, the question here is, where is the best place to start a company related to blockchain in Germany?
Startups are significant for driving innovation in different parts of an economy. The German Startup Monitor 2022 (GSM 2022) shows that the biggest area for startups is information and communication technology, which makes up almost one-third of all these companies. However, they are also involved in many other areas and are always trying new things, even in industries that have been around for a long time. This shows how startups are agents of change and have the power to create important and game-changing innovations.
German Startups are using advanced technologies, such as blockchain, to create practical applications. Other vital technologies for startups include the Internet of Things (IoT) and Industry 4.0. AI is especially significant, with its relevance increasing by 3.4% points since 2021. Startups are also experimenting with new technologies like Web 3.0 and the Metaverse to explore their potential, even though it's unclear how they will develop. Nonetheless, startups play a critical role in bringing these technological advancements to life.
The results of GSM 2022 showed that most startups with venture capital and business angel funding are pleased with their financiers. Founders are not just crucial for providing capital; they also act as business angels and share their valuable experiences. According to the mentioned survey, 14% of startup founders already make business angel investments in other firms, this number increases to 25% for serial founders. However, some founders do not invest because they lack the necessary capital and some are simply not interested. Figure 1 shows the ratio of founders as business angels (2022) where 14.2% are referred to as “Active Business Angels”, whereas 85.8% are “Not Active as a Business Angel”.
Figure 1. Founders as business angels (2022)
Out of the startups that receive funding from venture capitalists, 78% have investors who are independent, 32% have public investors, and 30% have corporate investors. Most of these startups are happy with the knowledge and skills their investors bring to the table, but many would like more help with getting their products or services into the market. In fact, almost half of all startups that prefer venture capital funding would prefer to receive funding from corporate investors.
After looking at the mentioned surveys, we can assume that Berlin is a great place for crypto startups that are working on innovative technologies such as blockchain, IoT, and AI. German startups are very important for driving change and making big innovations. Venture capitalists and business angels are very helpful to startups because they provide the necessary capital and experience to succeed. Additionally, Berlin has a great ecosystem for FinTech and blockchain, which has attracted many talented individuals, investors, and capital, leading to exciting innovations in cryptocurrencies, DeFi, and NFTs.
Berlin has a supportive startup culture and a thriving community of founders and investors, making it an attractive location for startups. Therefore, this city’s ecosystem makes it relevant to start a company related to blockchain in Germany.
About Mayra Candelaria
Mayra Candelaria is the executive assistant of Luna Vision’s CEO; while studying for a master's degree in International Business Management, she decided to get involved in the blockchain ecosystem. Before that, she worked as a Commercial Analyst in the oil and gas industry sector for over 4 years and now she is putting her sales skillset to use at Luna Vision. Get connected to Mayra via LinkedIn.
Luna Vision is a blockchain marketing agency with its roots in the blockchain ecosystem. We offer data-focused marketing to blockchain startups. With a deep understanding of blockchain technology, we can best promote your products created and running within the blockchain ecosystem and “translate” to your customers - may they be already included in the ecosystem or still be new here.