The German government’s recently published startup and scaleup strategy comprises eight areas of action and a total of 152 points. Not all of these are new, and many are as yet merely declarations of intent. The aim, however, is clear: to improve the conditions for successfully launching and scaling up startups in Germany. This article provides an overview of the key proposals and measures.
1. Funding
The issue of funding is of crucial importance to the majority of startups. Accordingly, the catalogue of measures in this area is particularly extensive. The top priority is to ensure the continuation of the Zukunftsfonds beyond 2030 as part of the Deutschlandfonds. Through this fund, the Federal Government is providing startup financing of more than 30 billion euros in the form of equity investments and loan guarantees. The WIN initiative will be continued as well; this is intended to secure commitments from private investors for investments in the startup ecosystem of up to 25 billion euros. The High-Tech Gründerfonds (HTGF) is also set to be further expanded, with the launch of the fifth generation of the fund, HTGF V, planned for 2027. A decision has already been taken to allow venture capital to be taken into account in private pension provision.
2. Education, spin-offs and technology transfer
A key focus in this area of action is the further development of the exist programmes. For example, the strategy document includes strengthening the ‘Startup Factories’, which Hamburg’s Impossilble Founders is one of, and establishing an exist Academy, with the aim of promoting spin-offs from universities and technology transfer to the business sector. A national IP strategy featuring standardised spin-off agreements and the establishment of the German Applied Research Association (DAFG) are also intended to contribute to this. Deep tech, quantum technology, life sciences and battery technology are identified as research areas particularly worthy of funding.
3. Security and Defence
An own area of focus is dedicated to security and defence, a sector in which startups have seen particularly strong growth recently. In connection with the Zukunftsfonds, a new vehicle is being created for direct federal investments in startups and scaleups that produce and provide products and services with clear military applications. Federal financing instruments are also being developed to take stakes in funds focusing on the security and defence industry.
4. Reducing bureaucracy
Startups have a long wish list when it comes to cutting red tape, and one key concern is to be addressed by the flagship project with the self-explanatory name ‘Schneller Gründen’ (Faster founding). Among other things, the aim is to digitise and speed up founding and registration processes, various licensing and authorisation procedures, and the notarisation process. The term ‘28th Regime’ refers to the Europe-wide establishment of the ‘EU Inc.’ company form, which is to be legally valid throughout the EU.
5. Procurement and Competition
A series of measures is designed to make it easier for startups to secure public contracts. Since 1 July, the threshold for direct contracts without prior tendering has been raised to 100,000 euros. For higher amounts, the Procurement Acceleration Act, which has also already come into force, applies, reducing bureaucratic hurdles in procurement. The Agentic AI Hub is intended to promote the use of artificial intelligence.
6. Skilled workers
Making highly paid employment contracts more flexible is intended to enable people to change jobs more quickly, including through tax relief on severance payments. The minimum income threshold is approximately 175,000 euros per annum. Employee share ownership schemes are to be strengthened to help retain staff. The extent to which a deferral of social security contributions is possible is to be examined.
7. Collaboration
This area of action focuses on promoting collaboration between startups and established companies. Among the few measures specifically mentioned are the strengthening of existing AI service centres and the de:hub initiative, which includes the Digital Hub Logistics & Commerce in Hamburg.
8. Internationalisation and Networking
To ensure greater international visibility, the umbrella brand ‘Startup Germany’ is being expanded, including through the organisation of the ‘Startup Germany Summit’. The scope of the ‘German Accelerator’ is being extended, including to Africa, and linked to the activities of the Startup Factories.
