Hamburg is increasingly popular among start-ups and leads Berlin and Frankfurt, according to the results of a survey published Wednesday (July 18, 2017) by PricewaterhouseCoopers (PwC). Some 74 per cent of 450 start-ups interviewed believe that Hamburg will continue to gain importance. Philipp Medrow, Director of PwC’s NextLevel initiative for start-ups, said: “The founders whom we interviewed are satisfied with Germany as a start-up location in terms of networking opportunities or access to financing.” However, other reasons were not given.
Hamburg has the highest number of start-ups in Germany, according to the monitor by the German government-owned development bank Kreditanstalt für Wiederaufbau in May. Fledgling companies can be found in diverse sectors and on Monday foods start-ups gave an impressive show at the Food Innovation Camp in the Chamber of Commerce Hamburg. Around 12.5 per cent of companies monitored by the Hamburg Startups initiative are in the food sector. But more and more start-ups can be found in sectors ranging from aviation, logistics across Hamburg.
Digital infrastructure and networking opportunities
Munich, Cologne and Düsseldorf occupied the middle ranking. Overall, the companies said they were very satisfied with the start-up climate in their respective location. Around 68 per cent said the framework conditions were “fairly good” while 18 per cent termed them “very good”. Digital infrastructure and networking opportunities are a top priority for start-ups as well. “However, start-ups usually locate to bigger cities where they can resort to good infrastructure and existing ecosystems,” said Medrow. Rural areas in particular needed to catch up in the development of broadband.
Innovative financing models
Similar to 2016, a lack of specialists continues to pose the greatest economic risk to business models, according to 29 per cent of those interviewed. Cyber attacks also posed a risk. Around every seventh start-up has been subjected to cyber attacks in the past three years. Start-ups are also becoming more innovative in terms of financing. Around 5 per cent of all fledgling companies are using new sources of capital such as crowd funding and credit platforms. However, equity capital i.e. personal savings or money from friends and acquaintances remains the most important source of financing, according to 84 per cent followed by bank loans (61 per cent) and public subsidies (25 per cent).
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