Is Frankfurt 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.

Frankfurt 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 Frankfurt 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 Frankfurt

Funding is one of the most critical ingredients in building a successful startup – and Frankfurt 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.

Frankfurt's early-stage funding scene is active, supported by various players. Notable VC firms with a presence or focus on early-stage deals include CommerzVentures and Neosfer (part of Commerzbank Group), TA Ventures, and Futury Capital. Angel investors are also present, with groups like Business Angels Frankfurt RheinMain connecting founders with private capital. Government support comes from entities like KfW, offering programs like ERP-Kapital für Gründung, and the Frankfurt Start-up Fund by FS Impact Finance provides credit guarantees. Despite these resources, challenges exist. While seed and startup financing has grown, securing follow-on funding can be harder compared to other German hubs like Berlin. Some reports indicate a general decrease in the number of financing rounds in Germany in 2024, although the total investment volume increased, driven by larger deals. The German Startup Monitor 2023 highlighted that founders perceive investor readiness less positively than in previous years, and liquidity remains a key challenge for many.

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  

Frankfurt 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.

Frankfurt has a growing startup ecosystem, ranking 5th in Germany and 33rd in Western Europe. It boasts a vibrant coworking culture with numerous spaces available. The city actively hosts tech and entrepreneurship events, fostering networking and collaboration. While a major financial hub providing access to funding and investors, Frankfurt also offers support for early-stage ventures through incubators and accelerators like TechQuartier and Accelerator Frankfurt. These programs often provide mentorship, resources, and connections, suggesting a mix of standardized programs and potentially personalized support aimed at helping early-stage companies grow.

For many entrepreneurs, the energy and resources available in Frankfurt 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 Frankfurt, 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 Frankfurt 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.

Frankfurt has a diverse talent pool, attracting professionals across various industries, which benefits startups with a range of skills and perspectives. Educational institutions like Goethe University Frankfurt and Frankfurt University of Applied Sciences have initiatives and centers supporting startups, offering programs, mentorship, and resources. The region is strong in finance, fintech, AI, cybersecurity, logistics, and increasingly, automotive and healthcare, providing specialized talent for startups in these sectors. Local talent supports entrepreneurial growth through a collaborative culture, networking opportunities, and access to experienced mentors and industry experts. While there's a wealth of potential talent, fully activating it and encouraging more risk-taking in the ecosystem are ongoing efforts.

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 Frankfurt 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

Frankfurt 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.

Frankfurt offers a robust ecosystem for startups, featuring numerous incubators and accelerators like TechQuartier, Frankfurt Innovation Center, and Accelerator Frankfurt, which provide mentorship, resources, and networking opportunities. The city boasts a vibrant co-working culture with spaces such as Design Offices and Startplatz, fostering collaboration. As a major financial hub, Frankfurt provides startups with access to banks, VCs, and investment funds. Government initiatives and local authorities, including KfW Bankengruppe and Frankfurt Economic Development GmbH, offer funding, grants, and advisory services. The City of Frankfurt's Gründerfonds (Founder Fund) provides loan guarantees and mentoring. These combined resources help startups secure funding, gain expertise, and thrive.

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 Frankfurt. 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 Frankfurt Be Considered the Best Place to Launch a Startup?

There’s no doubt that Frankfurt 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 startups in Frankfurt face several challenges. Competition exists, particularly within established sectors like FinTech, although Frankfurt's startup density is lower than cities like Berlin. While some sources mention affordable living costs, others indicate Frankfurt has high rental costs compared to other German cities, impacting overall expenses. Regulatory hurdles and bureaucracy are also notable challenges for startups in Germany, requiring significant time and effort for administrative processes and tax complexities. Navigating the legal framework and understanding local tax regulations are crucial.

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 Frankfurt or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Frankfurt 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