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1 nderstand Germany needs to startups

2 2015 Press conference: Deutscher Startup Monitor 2015 Berlin, 22 September 2015 Deutscher Startup Monitor (DSM) is a joint project of the Bundesverband Deutsche Startups e.v. (BVDS), the Berlin School of Economics and Law (HWR Berlin) and sponsor KPMG in Germany.

3 STUDY DESIGN Original 1,061 selected participants (2014: 903, 2013: 454) Online survey from 9 April to 12 May network partners 5 startup regions DSM

4 STUDY DESIGN Variante 1 1,061 selected participants (2014: 903, 2013: 454) Online survey from 9 April to 12 May network partners 5 startup regions Rhine-Ruhr Metro area 109 participants Stuttgart/ Karlsruhe 84 participants Hamburg 88 participants 10.3% (8%) Saarland 0.4% (0%) North Rhine- Westphalia Rhineland- Palatinate 1.6% (1%) Bremen 0.3% (2%) 15.1% (9%) 7.9% Schleswig- Holstein Lower Saxony Hesse 3.1% (3%) 1.9% (2%) 3.3% (4%) 8.3% (7%) Thuringia 1.6% (3%) 9.9% Baden- (12%) Württemberg Saxony- Anhalt Bavaria 16.7% (11%) Mecklenburg-West Pomerania Brandenburg 1.5% (3%) 0.2% (0%) 11.5% (8%) 0.6% (1%) 31.1% (39%) Saxony 4.5% (2%) Berlin 330 participants Munich 122 participants Federal states defined and analysed startup regions DSM

5 3X3 INFORMATION ABOUT THE 3RD DSM Startups are defined by 3 features: Their age! Startups are younger than 10 years old. Their ability to innovate! Driven by their technology and/or business models, startups are highly innovative. Their growth! Startups have (or are targeting) significant employee and/or revenue growth.

6 3X3 INFORMATION ABOUT THE 3RD DSM 3 goals: Present the development and significance of startups and identify research gaps. Map out economic policy initiatives to strengthen Germany as a startup location and its regional ecosystems. Drive entrepreneurship in our society. DSM

7 DSM represents some: 1,000 startups 3,000 startup founders 16,000 startup employees 3X3 INFORMATION ABOUT THE 3RD DSM DSM

8 3X3 STARTUP INFORMATION FOUNDERS ABOUT THE 3RD DSM Rise in share of female founders: from 10% (2014) to 13% (2015) Startup founders continue to be 34.9 years old on average First-time startup at 29.1 years of age; at 28.8 years of age, men start up a business on average 2.3 years earlier than women. DSM

9 SERIAL FOUNDERS Roughly 45% of startup founders have already established more than just the current startup. Culture of failure: About 1/3 of startup founders have shut down a previously established startup. DSM

10 FOUNDER CULTURE Even after giving up their current business, more than 80% of all startup founders would still pursue selfemployed activity. Startup founders (8.0) are happier than salaried employees (6.8). DSM

11 BUSINESS CLIMATE First-time survey of the startup business climate: Founders have a positive outlook. 89.3% of startup founders are satisfied with their current business situation. 76% assume improvement during the next 6 months. DSM

12 JOB ENGINE Startups are expanding their function as job engines: With an average of 17.6 jobs (incl. founders) after 2.8 years, they are once again creating more jobs than in the prior year. Berlin leads the way with an average of 27.7 employees. DSM

13 INTERNATIONALITY Just under 10% of startup founders and 22% of startup employees are not from Germany. DSM

14 The 5 major challenges facing startups: Marketing Finance Human Resources Product (development) Business development MAJOR CHALLENGES DSM

15 DSM startups have raised more than EUR 1 billion in external capital. Business angels: After family and friends, they are the second most important source of financing. FINANCING DSM

16 Startup founders are more satisfied with federal and state policies than in the prior year. STARTUP POLICIES DSM

17 MINIMUM WAGE Roughly half of startups assume that introduction of a minimum wage will have a negative impact. 61.1% of startups have amended their hiring policies for interns in the wake of minimum wage introduction.

18 Startup founders rate institutions of higher education as being much better than schools in teaching people how to think and act as entrepreneurs. EDUCATION SYSTEM DSM

19 FRAMEWORK GERMAN CHAMBER OF COMMERCE On average, startup founders rate the German Chamber of Commerce's representation of interests as being merely "sufficient" (3.9). 57% of founders use chamber of commerce services after foundation. During the course of the foundation process, 44% of founders draw upon chamber of commerce services. DSM

20 Startup voting: the FDP [German Free Democratic Party] would determine the German chancellor. FOUNDERS VOTES FDP in the North, CDU/CSU in the South. Image: Schälte, Bernd/Picture Archive of the State Parliament of North-Rhine Westphalia DSM

21 PARTNER NETWORKS WE SAY "THANK YOU!" DSM

22 PARTNER NETWORKS WE SAY "THANK YOU!" DSM

23 FURTHER INFORMATION For more information on startups, infographics and to download the report, visit deutscherstartupmonitor.de DSM

24 ANKE SCHÖN! DEUTSCHER STARTUP MONITOR 2015 Contact The Berlin School of Economics and Law Badensche Straße 52, Berlin Prof. Sven Ripsas Professor for Entrepreneurship T Steffen Tröger Project Management T KPMG AG Wirtschaftsprüfungsgesellschaft Klingelhöferstraße 18, Berlin Tim Dümichen Partner T Marius Sternberg Partner T Bundesverband Deutsche Startups e.v. Schiffbauerdamm 40, Berlin Florian Nöll Chairman of the Management Board T

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