Is Germany 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.

Germany 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 Germany 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 Germany

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

The early-stage funding scene for German startups is dynamic, supported by a mix of players. Notable VC firms active in this space include High-Tech Gründerfonds (HTGF), a significant public-private fund, as well as private firms like Global Founders Capital (GFC), HV Capital, and Cherry Ventures. Government support is also crucial, with programs like the EXIST Business Start-up Grant and the ERP Start-Up Loan offering non-dilutive or favorable financing. Angel investors, often connected through networks like Business Angels Deutschland, play a vital role in providing initial capital and expertise. Despite a reported increase in overall venture capital investment in 2024 compared to 2023, reaching €7 billion, the number of funding rounds actually decreased, suggesting larger average deal sizes but potentially fewer deals overall. While early-stage financing, particularly pre-seed and seed rounds, remained relatively stable in 2023, challenges persist, including intense competition and, for some, navigating a more cautious investment climate influenced by macroeconomic factors. There's also a recognized need for stronger later-stage funding to help companies scale within Germany.

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  

Germany 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.

Germany has a dynamic startup and innovation culture, particularly in major cities like Berlin, Munich, and Hamburg, which are considered startup hotspots. The ecosystem is characterized by significant entrepreneurial activity, with a startup founded every 20 minutes in Berlin alone. There is a strong presence of coworking spaces and numerous tech events across the country, fostering networking and collaboration. Germany offers substantial public support for startups, including funding programs and advisory services at both federal and state levels. While there are competitive, standardized programs like EXIST and High-Tech Gründerfonds (HTGF) that support early-stage and technology-oriented startups, there is also increasing tailored support, including initiatives for female founders and those from research institutions. Business angels also provide not only capital but also expertise and networks, offering a form of personalized support. The ecosystem supports startups at various stages, though some programs specifically target early-stage development.

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

Germany has a skilled workforce and a thriving startup ecosystem, though talent availability presents challenges, particularly in specific tech areas. German universities and research institutions are crucial talent pipelines, with over half of startups having university support. These institutions foster innovation and provide access to skilled graduates and research. In-demand industry-specific skills for startups include IT and software development (especially Python, JavaScript, and SQL), data analytics, cybersecurity, and UI/UX design. There is also a need for talent in sales and marketing. Local talent, including a significant number of international professionals, supports entrepreneurial growth. Almost half of employees in German scaleups are from abroad, and many operate in English. However, a shortage of skilled workers, particularly in tech, is a significant obstacle for startups and scaleups. Bureaucratic hurdles, like visa processes, can slow down the recruitment of international talent. Despite this, the close link between universities and startups, along with a focus on innovation, helps fuel the ecosystem.

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 Germany 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

Germany 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.

Germany offers a robust ecosystem for startups, featuring extensive infrastructure and support systems. This includes a wide network of incubators and accelerators providing mentorship, networking, and resources to refine business models and achieve investor readiness. Co-working spaces and technology hubs across the country, particularly in cities like Berlin and Munich, foster collaboration and provide essential facilities. Government initiatives play a crucial role, with programs like EXIST and High-Tech Gründerfonds offering significant financial support through grants and seed funding. The federal government's Startup Strategy includes measures like funding programs, advisory services, and efforts to reduce bureaucracy. Initiatives like the Future Fund aim to mobilize substantial investment for startups, particularly in their growth stages. These resources collectively help startups access capital, expertise, and networks, contributing to their success and the thriving German startup landscape.

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

There’s no doubt that Germany 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 Germany face several challenges. Competition is significant, particularly in major hubs like Berlin and Munich. Regulatory hurdles and bureaucracy are notable obstacles, with complex paperwork and differing state regulations impacting company formation and growth. While the cost of starting a business might be lower compared to some other European cities, the general cost of living and rising operational expenses due to inflation can still be challenging for startups with limited funding. Additionally, securing later-stage funding can be more difficult.

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

So, while Germany 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