Is Cologne a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Cologne has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Cologne gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Cologne

Funding is one of the most critical ingredients in building a successful startup – and Cologne offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Cologne's early-stage funding scene is active, supported by various players. Notable VC firms with a presence or focus on early-stage investments include Capnamic Ventures, Coparion, and STS Ventures. Angel investors and networks like Business Angels Netzwerk Deutschland and Rotonda Business Angels also play a role. Government support is available through initiatives like the NRW Gründen Stipendium and programs offered by KölnBusiness, which also runs a Soft Landing Programme for international startups. While the number of financing rounds in Cologne saw growth in 2022, the total investment volume decreased slightly, although less sharply than the national trend. Challenges can include navigating bureaucratic requirements for government funding and the general competition for investment. Despite a national trend of decreased investment in 2023, Cologne's financing volume increased significantly, partly due to a large round for the AI company DeepL. Europe overall saw funding stabilize in 2024 but remains below the market peak, with early-stage funding holding up better than late-stage.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Cologne has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Cologne has a vibrant startup ecosystem with over 800 startups, many in the early or seed stage. The city offers a strong infrastructure, including numerous coworking spaces like STARTPLATZ, WeWork, and Design Offices, fostering community and providing flexible workspaces. There is significant entrepreneurial activity, supported by a large university landscape and a high number of startups per year in North Rhine-Westphalia. Cologne hosts many tech events, workshops, and networking opportunities, including major events like DMEXCO and GamesCom, as well as smaller meetups. The ecosystem provides support for early-stage founders through various incubators and accelerators such as Gateway, STARTPLATZ, and xdeck, offering tailored programs, coaching, mentoring, and network building, often without taking equity. This indicates a focus on nurturing startups from their initial phases.

For many entrepreneurs, the energy and resources available in Cologne can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Cologne, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Cologne is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Cologne offers a strong talent pool for startups, supported by a large university landscape with over 100,000 students and numerous higher education institutions and research centers. The University of Cologne, for instance, is recognized for its startup support and incubation programs, ranking highly in Germany. The city's key industries, including Information and Communication Technology, Media and Creative Industries, and Life Sciences, provide specialized skills relevant to many startups. Cologne is noted for having a significant number of software developers. Local talent supports entrepreneurial growth through a well-connected ecosystem, a strong B2B focus, and a collaborative mindset among startups and established companies. Initiatives like the Gateway Factory further connect universities, startups, and industry for talent and growth.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Cologne can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Cologne boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Cologne offers a robust ecosystem for startups with extensive infrastructure and support systems. The city is home to numerous co-working spaces, incubators, and accelerators like STARTPLATZ and Xdeck, providing resources and mentorship. KölnBusiness plays a key role, offering funding advice, networking opportunities, and programs like the Soft Landing Programme for international startups. Universities, such as the University of Cologne, are also significant, providing coaching, workshops, and access to networks and funding initiatives like the Excellence Start-up Center. Government initiatives, including those from the state of North Rhine-Westphalia, contribute through funding programs and support for technology-based startups and scaling companies. This comprehensive network helps businesses thrive by providing essential resources, expertise, and financial support.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Cologne. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Cologne Be Considered the Best Place to Launch a Startup?

There’s no doubt that Cologne provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching a startup in Cologne may encounter several challenges. Competition exists within the city's growing startup ecosystem, particularly in popular sectors like medicine, e-commerce, software, and food. While Cologne's cost of living is considered lower than some major German cities like Munich or Frankfurt, it is still more expensive than Berlin, which can impact operational costs and attracting talent. Regulatory issues and bureaucracy in Germany can be complex and time-consuming for startups, requiring careful navigation of compliance, tax laws, and labor regulations. Founders may need to seek professional help to manage these legal intricacies.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Cologne or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Cologne offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash