Startups

Software remains the number 1 startup product

The German Startup Monitor 2017 describes a lively, steadily growing startup landscape in which a large majority of companies are already reporting revenue.

08 Nov. 2017
Source: KPMG AG
Source: KPMG AG

The Bundesverband Deutsche Startups e.V. ( BVDS ) recently presented the fifth edition of the German Startup Monitor . The overview of the scene was based on the data from an online survey in which 1,837 people took part this year – many more than in previous years.

The startup rate – that is, the number of startups in proportion to the labor market – has nevertheless decreased slightly, which the authors attribute to the falling unemployment rate. The study received academic support from the Chair of E-Business and E-Entrepreneurship of the University of Duisburg Essen ( netCAMPUS ) under the direction of Prof. Dr. Tobias Kollmann, who is also one of the authors.

The two top locations for startups are Berlin (17%) and the Rhine-Ruhr region (11%). They are followed by Stuttgart-Karlsruhe, Munich, Hannover-Oldenburg and Hamburg, each with about 6%. The most popular industries of the newly founded companies are IT/software development (19.4%) and Software as a Service (12%). This is in line with the findings of the current European Startup Report stating that around one-seventh of all startup job offers are aimed at software developers. Industrial technology/production/hardware comes next in the industry ranking, with 9.1%, while bio, nano and medical technology as well as fintech companies, each with 4.6%, occupy positions 7 and 8.

Most startups managed to raise between 50,000 and 150,000 euros of capital, 21.7% of which comes from their own savings and 16% of which comes at least partially from venture capitalists. Almost 90% of respondents are already achieving sales. Every third startup is generating between one and 150,000 euros, while about 10% are even generating sales of between 1 and 2 million euros.

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