Hamburg-News-media-it-creative-industries-innovation-future-business
Betahaus - © mediaserver.hamburg.de / C. O. Bruch

Start-ups driving digital transformation

Start-ups growing and providing jobs thanks to venture capital - 75 per cent approval among German citizens, survey finds

Venture capital for young, innovative firms is right, according to almost three out five German citizens (75 per cent) who expressed hope that such financing would boost the economy. These are the main findings of an online survey of 1,000 German citizens conducted in December 2016 by e.ventures on the question: “How important is venture capital for Germany?” Some 77 per cent of German citizens fear that a lack of venture capital funding would force many founders to move abroad which would ultimately damage Germany.

Young firms add impetus to mid-sized sector

Most of those surveyed believe the new U.S. administration’s economic views are unhelpful. Some 60 per cent of German citizens believe tax support for older, established sectors to save costly jobs is wrong. Around 77 per cent of those interviewed expressed hope that start-ups and venture capital would pave the way for digital business models and structural change. However, nearly every second German citizen found the concept of venture capital unclear.

Commenting on the results of the survey, Andreas Haug, General Partner at e.ventures, noted: “Many young firms are driving digital transformation and are adding important impetus to the mid-sized sector. Start-ups are enormously helpful when it comes to developing the economy.” Such companies ensure more efficient, transparent markets and change the value-added chain by using technology and developing innovative, customer-friendly services for consumers.

International early-stage investor

The international early stage investor, e.ventures, has shares in several companies in Silicon Valley, California. Haug does not expect business to become more difficult under the new U.S. president and noted: “The market for venture capital is global by nature. The capital flows to places with the best framework conditions. If protectionist blocks limit theses opportunities, investments will flow to other regions that offer better conditions for start-ups and venture capital. Innovations definitely occur. It is just a question of where and who benefits from them.”

e-ventures manages several funds in which the Otto Group is the main investor and is presently investing five funds in start-ups across the U.S., Europe, Asia and Latin America. An additional growth capital fund is being put towards growing companies across the globe. The company has branches in San Francisco, Hamburg, Berlin and São Paulo and a partner funds in Asia.
pb

Sources and further information:
www.ottogroup.com/newsroom

More articles

  • There are no older articles in this category.
  • There are no newer articles in this category.