As the German startup ecosystem grows it is becoming increasingly opportune to build a startup in the country. Munich has made a name for itself for its blossoming startup scene and creative spirit. With available talent and access to capital, entrepreneurs from Munich are enjoying ideal conditions to build a startup.
While the Munich Founder Institute prepares to launch another successful semester, we’ve taken the time to compile several major reasons Munich is an excellent location to build a startup.
To learn more about starting up in Munich, come to a Munich Founder Institute Information Session, a free startup event with networking, Q&A, and drinks, or apply to the Munich Founder Institute today.
The Startup Ecosystem is Growing
There are many great startup companies that are based in Munich. This is a great indicator that the ecosystem is thriving. With so many companies having been started in Munich, this means that there is not only abundant talent, but a strong network of advisors and mentors who can help new entrepreneurs launch their companies. The following are some of the most notable startups from Munich:
- Affilinet - A performance marketing platform that pairs advertisers with publishers
- Xing Events - Event Management Software
- Experteer - Career Search Engine for Germany's Job Marketplace
- MegaZebra - One of Europe's leading social gaming companies
Visit Munich Startups List to find an in depth list of some great companies based in Munich.
Thriving Talent Market
Munich is the second largest University city in Germany. In 2012 alone there were nearly 105,000 students enrolled in Munich based Universities, more than 30,000 of them being in a technical university. As increasing amounts of skilled graduates enter the workforce the technical abilities of the talent market are expanding. Munich was even voted Europe's top tech hub by the European Commission’s Joint Research Centre.
As MegaZebra writes in a post on their blog about why they started their company in Munich and why their team loves it:
Just getting smart people to a city is only half the story. Once people have come to Munich, they tend to fall in love with the city." [...] "This mix of top talents and outstanding living conditions is what makes Munich the perfect home for an innovative team like us, as we move down new exciting paths."
Angel investors and VC’s coming to the area
There is plentiful startup capital moving to the region. With Google Ventures $100M Fund moving to Europe, as well as Germany’s own Bauer Media launching Bauer Venture Partners, a $134M fund, it has never been a better time to launch a company in Europe. What’s more, is lots of the money is flowing directly to Germany. Big funds opening also indicates that many smaller sources of capital will become available as well. As the list of capital sources for the area grows, here are some additional venture capital funds in the area.
- Doughty Hanson
- Acton Capital
- Astutia
- Munich Venture Partners
- Holtzbrinck Ventures
- Target Partners
- Rocket Internet
Plenty of Co-working spaces
Perhaps the largest challenge for entrepreneurs is finding like-minded people to learn from and cooperate with. Coworking spaces and incubators make this process much easier by allowing everyone to work on their project in the same area and meet some of the best local entrepreneurs and teams. Among others some great co-working spaces in the area are Co-Working Munich, Knorr 69, Combinat.
Support from the Local Government
The City of Munich has a program set up specifically for helping small businesses and startups launch and aids them in avoiding common pitfalls. According to the City of Munich, their "Startup services comprise financing options such as the München-Fonds (Munich Fund), help in finding office and commercial space in Munich and access to business support networks." In addition, they also pair entrepreneurs with startup experts who help plan for self employment, develop business strategies, and get off to a flying start.
To get more information about how Munich's "Department of Labor and Economic Development" reference the "Startup Assistance" page.
To learn more about starting up in Munich, come to a Munich Founder Institute Information Session, a free startup event with networking, Q&A, and drinks, or apply to the Munich Founder Institute today.
