Is Stuttgart 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.

Stuttgart 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 Stuttgart 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 Stuttgart

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

Stuttgart's early-stage funding scene is active, particularly for tech and industry-focused startups. Notable support comes from entities like High-Tech Gründerfonds and LBBW Venture Capital, which invest in early-stage IT and life science companies. The Business Angels Region Stuttgart (BARS) network also connects founders with private investors. Government initiatives like Start-up BW and programs through the University of Stuttgart and IHK Region Stuttgart offer grants and support. While there's a focus on seed and early-stage funding, some reports suggest a potential funding gap in the mid-size range (Series A and beyond) across Germany, making it harder for startups to scale domestically without seeking international investment. Despite a national increase in overall investment volume in 2024, the number of deals decreased, indicating a trend towards larger, fewer investments. Competition for funding remains, but the ecosystem benefits from strong industry links and dedicated support programs.

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  

Stuttgart 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.

Stuttgart has a developing startup ecosystem, ranking 6th in Germany. It boasts numerous coworking spaces, including Impact Hub Stuttgart and various Regus locations, offering flexible workspaces and networking opportunities. The city hosts tech events, conferences, and community meetups, fostering connections among entrepreneurs and investors. Entrepreneurial activity is notable, particularly in Hardware & IoT, Software & Data, and Marketing & Sales. The ecosystem supports early-stage founders through university programs, accelerators like START Stuttgart and Startup Autobahn, funding initiatives, and mentorship, indicating a focus on nurturing new ventures alongside support for more mature startups.

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

Stuttgart offers a strong talent pool for startups, fueled by its reputable educational institutions like the University of Stuttgart and Hochschule der Medien Stuttgart, which provide programs in engineering, IT, and entrepreneurship. The region excels in industry-specific skills, particularly in automotive engineering, mechanical engineering, IT, and increasingly in areas like AI, Industry 4.0, and clean energy, reflecting the presence of major companies and research institutes. Local talent supports entrepreneurial growth through university startup centers, talent pools connecting students with startups, and a collaborative ecosystem fostering innovation and knowledge transfer. Despite a general shortage of skilled workers in some IT areas, the focused educational and support structures contribute significantly to the talent pipeline for startups.

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 Stuttgart 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

Stuttgart 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.

Stuttgart offers a robust ecosystem for startups, featuring extensive infrastructure and support systems. This includes numerous co-working spaces, incubators, and accelerators like Startup Autobahn and Arena 42, providing physical space, mentorship, and networking opportunities. Support systems encompass access to funding through angel investors and venture capitalists, as well as consulting services and events for training and feedback. Government initiatives, such as the state-level Start-up BW and the federal "Startup Factories" competition, play a significant role by offering funding programs, networking events, and strategic support to strengthen the region's innovation landscape. These resources collectively help startups thrive by providing essential guidance, connections, and financial assistance from the idea stage through growth.

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

There’s no doubt that Stuttgart 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.

Launching a startup in Stuttgart presents several challenges. Competition is significant, particularly from established large companies in the strong automotive and engineering sectors. While Stuttgart has a growing startup scene, the cost of living, especially housing, is higher than the German average, which can impact attracting and retaining talent. Navigating regulatory issues can also be complex for startups in Germany, requiring attention to legal frameworks that may not always keep pace with innovative business models.

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

So, while Stuttgart 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