Start-up scene in Munich: still one of the top locations
The startupdetector report 2019 shows how successful Munich continues to be with regard to start-ups and financing. Find out more in our new blog post!
Munich and the surrounding area is one of the top locations for start-ups and young companies throughout Germany, alongside cities such as Berlin and Hamburg, which is nothing new to begin with. But now there are new figures from 2019 that further consolidate this Bavarian position.
The startupdetector report 2019 shows how well the start-up scene developed in Munich in 2019.
Bavaria represented with top rankings
Bavaria is a stronghold for start-ups, together with Berlin. According to startupdetector, there was an overall increase in new start-ups in Bavaria in 2019. According to the study, the positive figures are mainly due to the well-functioning network of existing companies and research institutions. The Bavarian start-up accelerators in the state and incubators in Munich and the surrounding area, as well as the generally positive scene, are also contributing to this renewed upswing. The comparison of start-up intensities (ratio of absolute start-up numbers per 100,000 inhabitants) is particularly interesting. The colleagues from Munich STARTUP clearly see Munich on a par with Berlin: start-ups were primarily focused on metropolitan regions with the appropriate infrastructure. If Munich and its surrounding area are taken as a basis (population of Munich city + surrounding area 1.91 million inhabitants), there are 14.34 start-ups per 100,000 inhabitants.
Financing rounds and sectors
Even when it comes to the completed financing rounds, Bavaria and therefore the Munich start-up scene is doing very well. According to the analysis carried out for each federal state in the second half of 2019, with 232 successful financing rounds, Bavaria is directly behind Berlin with 272. No wonder, as investments are clearly being made where companies are being founded. Booming sectors throughout Germany are currently health and software. Closely followed by more classic industry start-ups. Ideas and innovative products in these areas are more in demand than ever.
Focus primarily on B2B
Furthermore, most start-ups are still active in the B2B sector. More than 50 percent of the young companies belong to this sector. And it is precisely these that find a solid environment in Bavaria, because many companies (from DAX corporations to SMEs) and therefore many customers and partners are located here. A dense network of research institutions, cross-industry collaborations and targeted support for start-ups all contribute to the fact that Bavaria, and above all the Munich region, was particularly attractive for start-ups and establishments in the B2B sector in 2019 and will continue to be in future.
- by Johanna Hebestreit
- Senior Manager Investor Services
- View author's other articles