Is Munich 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.

Munich 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 Munich 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 Munich

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

Munich's early-stage funding scene is active, particularly in deep tech, B2B software, and industrial technologies. Notable early-stage VC firms include Picus Capital, HV Capital, 10x Founders, and UVC Partners. The ecosystem also benefits from strong support from institutions like UnternehmerTUM, which offers pre-seed funding and prototyping grants, often linked to the Technical University of Munich. Government initiatives like the EXIST Founder's Grant and the Bavarian BayTOU program provide crucial early financial aid. While early-stage funding shows activity, securing larger follow-on rounds can be challenging, sometimes relying on international investors. Competition for funding is present, and the overall investment climate can be influenced by broader economic factors. Despite challenges, Munich saw increased VC funding in 2024, surpassing Berlin for the first time, attracting €2.33 billion.

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  

Munich 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.

Munich boasts a vibrant startup and innovation culture, recognized as a leading ecosystem in Europe. The city is home to numerous coworking spaces catering to freelancers, startups, and larger teams, fostering a collaborative environment. A strong conference culture and regular events connect startups with talent, investors, and established companies. Entrepreneurial activity is high, with a significant number of startups founded annually. The ecosystem offers a range of support for founders, including accelerators, incubators, and university-affiliated centers like UnternehmerTUM, which assists startups from concept to market. While standardized programs exist, there is also evidence of tailored support, expert coaching, and initiatives aimed at specific sectors like AI and life sciences, suggesting a mix of standardized and personalized assistance for early-stage founders. The ecosystem benefits from strong links between academia, corporations, and government initiatives.

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

Munich offers a strong talent pool for startups, fueled by leading educational institutions like the Technical University of Munich (TUM) and Ludwig-Maximilians-Universität München (LMU). These universities are significant sources of skilled graduates and foster entrepreneurial initiatives through centers like UnternehmerTUM and the LMU Entrepreneurship Center. The city excels in industry-specific skills, particularly in deep tech, robotics, autonomous systems, and enterprise software, reflecting its strong industrial base. While there's high demand for tech talent, especially experienced developers, the presence of major tech companies and a vibrant ecosystem attract both local and international professionals. Local talent supports entrepreneurial growth by forming strong networks and contributing to a "flywheel effect" where experienced individuals from successful startups and corporations launch new ventures. This creates a dynamic environment, although competition for skilled workers, particularly in specialized tech fields, can be intense.

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 Munich 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

Munich 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.

Munich offers a robust infrastructure and extensive support for startups, fostering a thriving ecosystem. Key resources include numerous coworking spaces, incubators like WERK1 and the Munich Technology Center (MTZ), and accelerators such as TechFounders and those at university entrepreneurship centers like UnternehmerTUM (TUM) and LMU. These provide not only physical space but also crucial mentoring, networking opportunities, and access to investors. Government initiatives, both from the City of Munich and the Free State of Bavaria, play a significant role. The City of Munich's "Technology and Startup Centers Program" focuses on providing affordable workspace. Initiatives like BayStartUP offer financing support and connect startups with investors. The Bavarian government also provides funding programs like FLÜGGE for university spin-offs. These combined efforts, alongside strong university links and a vibrant event scene like Bits & Pretzels, help startups develop, find funding, and connect with the wider business community.

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

There’s no doubt that Munich 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 Munich face several challenges. Competition is significant, particularly in thriving sectors like automotive technology, FinTech, and HealthTech. The cost of living and operating a business is notably high compared to other German cities, which can force startups to generate revenue quickly. Regulatory issues also pose hurdles, requiring navigation of various legal requirements including employment law, data protection, and tax law. Specific industries like defense technology face additional stringent regulations.

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

So, while Munich 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