The most important results from the German Startup Monitor 2024
For the twelfth time, the German Startups Association has presented the German Startup Monitor, the most comprehensive study on the startup ecosystem in Germany. Almost 2,000 respondents paint a picture of the mood that is characterised by major challenges but also unbroken optimism.
In contrast to the established economy, the business climate among startups is much more positive and has improved slightly compared to the previous year. Overall, 39% of startups rate the current business situation as good, 48% as satisfactory and 13% as poor. In terms of business expectations for the next six months, the positive assessment predominates at 58%. In addition, four out of five founders expect the business situation to improve by the end of 2025.
In addition to the business climate, the investment climate has also stabilised, although the overall mood here is more negative. The current investment situation is rated as poor by almost 51% of respondents and as good by less than 17%. However, the optimism of startup founders is also evident here: 42% expect conditions to improve in the near future and only 17% expect them to deteriorate. Three quarters of startups plan to raise external capital within the next twelve months - more than in 2023 (69.5%). The sums requested are also increasing: While less than 59% indicated a capital requirement for 500,000 euros or more in the previous year, this figure is almost 70% in 2024.
AI and B2B on the rise, more important role for universities
The financial challenges are leading to shifts in corporate strategies and business models. The proportion of founders who name profitability as their main goal has risen continuously since 2021 from a good 58% to almost 74%. Many are also focussing on the future technology of artificial intelligence (AI) - more than one in five startups (22%) see AI as the core of their own product. Startups are also increasingly concentrating on business customers. The share of B2B in the total turnover of German startups continues to rise and now stands at just under 75%. Encouraging is the growing importance of research findings for startups. More than every second startup has worked with or been supported by universities or research institutions during the development process. Four out of five founders rate the proximity to universities positively - a new record. The situation is less favourable when it comes to cooperation between startups and the established economy. Only 37.5% of startups rated the opportunities for cooperation with established companies positively, which is even less than in the previous year (40.5%).
There is also a negative trend for female founders. Their share remains low at 18.8% and is declining for the first time after years of continuous growth (2023: 20.7%). The proportion of founders with a history of immigration was also surveyed, being just under 18%. International employees make up almost a third of the workforce on average, and English is used as a working language in around 35% of startups. Finally, a very pleasing figure: almost 84% of founders would found a startup again.
