SURVEY OF START-UPS. Summary
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1 2014 SURVEY OF START-UPS Summary Science promotes the economy: An analysis of start-up activity in the environment of ten universities in Berlin-Brandenburg Based on a systematic survey of start-up founders from universities Portrayal of most significant findings from responses by 840 enterprises
2 Foreword Dear Readers, this is a very special moment: For the first time, the spin-off activities of 10 universities in Berlin and Brandenburg have been comprehensively evaluated. The findings of the first survey of start-ups across universities clearly show that commendable work has been done at the universities in recent years. The flourishing organisational culture has developed into an economic factor that cannot be underestimated considering its significance for the metropolitan region of Berlin-Brandenburg. The spirit of start-ups is present at the lecture halls and laboratories. This is where ideas of tomorrow are thriving, convincing us with their creative and colourful diversity. The founders fields of activity range from intelligent measurement of particles in industrial facilities to online learning of musical instruments to development of a liquid fertilizer for the balcony and the garden. These are great successes that were made possible by providing subsidies like ESF. Incubators and start-up services, which are situated locally at the universities, work directly at the interface between students, the academic and the public sector and industry. Due to the strong fascination of Berlin as the European capital of founders, this intersection continues to be stimulated: Increasingly more international professionals flock to us and vitalise our research and economy. I would like to thank the founders helping young people in their academic start-ups. I would also like to thank the start-up founders themselves.
3 Through their commitment, they are doing excellent work for the states of Berlin and Brandenburg. Their innovative companies enrich the business location of Berlin-Brandenburg through a high degree of flexibility, quick responsiveness and knowledge about the latest state of research. We wish to continue promoting the productive climate for start-ups in Berlin and simultaneously provide support so that start-ups are also sustainable for the benefit of Berlin. I wish all of the university incubators and start-up services much continued success in their work. Sincerely, Sandra Scheeres Senator for Education, Youth and Science in the State of Berlin
4 Imprint TU Berlin Centre for Entrepreneurship Hardenbergstrasse Berlin Germany A PDF file of the brochure and the full version with the complete findings are downloadable at: Many thanks to all supporters at the universities as well as to all the participating founders! Coordinator TU Berlin Centre for Entrepreneurship
5 Introduction Even less than 10 years ago, promotion of start-ups at the universities was not really a serious issue. But things look very different now because much has happened in the meantime. At almost all of the universities and colleges in Berlin and Brandenburg, the appropriate facilities in the form of a staff position, a department or an independent subsidiary have been established. These start-up services support people interested in founding an enterprise from the first idea to the founding of their own business. Their tasks range from idea scouting, inspiration, entrepreneurship training as well as structured support for the entrepreneurial students and scientists. For example, this includes preparation for the market entry and the search for suitable funding opportunities. The universities also provide dedicated space for start-up projects and start-ups. In addition, they have a great network of mentors, investors and companies on both the national and international level. For the first time, the spin-off activities of 10 universities in Berlin and Brandenburg have been compiled systematically and uniformly within the scope of an initiative across universities. The following universities participated in the first joint survey of startups: Beuth Hochschule für Technik Berlin, Fachhochschule Potsdam, Hoch schule für Technik und Wirtschaft Berlin, Hochschule für Wirtschaft und Recht Berlin, Humboldt- Universität Berlin, Universität der Künste Berlin, Universität Potsdam, Technische Hochschule Wildau, Technische Universität Berlin.
6 Introduction Start-ups of the universities Economic driver for Berlin and Brandenburg Cities have always been drivers of innovation. In particular, the region of Berlin/Brandenburg has assumed a prominent role by international standards. This is where young entrepreneurs will find an incomparable creative and innovative environment for the development and implementation of new business ideas. So it is no wonder that Berlin is now considered the European capital of founders. Even on the international level, many investors are keenly interested in the start-up scene here. The universities contribute significantly to the good start-up climate. For example, in addition to the training of IT experts, engineers and designers for the growing start-up scene, increasingly more students, graduates and scientists of the universities directly establish their own enterprises. The result is that jobs are created in the region. In addition, the academic startups promote the desired cooperation between science and industry. Through contract research or joint research projects with universities, the formers increasingly act as potent third-party funding agencies. In many cases, the former founders from universities become mentors, business angels and contact persons from the business community. The success in scholarships also speaks for itself: In the case of approval rates for EXIST programs by the German Federal Ministry of Economy and Energy, as well as the financing by the High-Tech Gründerfonds, Berlin/Brandenburg assumes a top position in all of Germany. The Survey 10 universities, 10 questionnaires and 45 questions For the first time, a comprehensive picture of the spin-offs from universities in Berlin and Brandenburg can be drawn up with the joint initiative. Through a standardised questionnaire, the relevant indicators of founded companies were collected and evaluated. For the first time, such a survey was conducted regionally and thus the power of universities through the development of university start-ups demonstrated.
7 Introduction The survey instrument was designed as an online survey and is based on the current state of entrepreneurship research. It was developed as part of the Harmonized Instrument Initiative (HII), a joint project by the three technical universities: Technische Universität Berlin, Karlsruher Institut für Technologie (KIT) und die Technische Universität München. The questionnaire consists of 45 mostly closed questions that address topics, such as contact, company, relationship to the university, funding and support for start-ups. Those interviewed were founders, as well as alumni of the included universities. The relationship to the respective university was a prerequisite for participation. The instrument is designed as a longitudinal survey and should be conducted once every two years. The start-up survey is co-financed by the Technologiestiftung Berlin. Outlook The survey results verify the successful work of the academic start-up services and especially confirm the importance of the Berlin/Brandenburg economic region. 17,000 jobs speak for themselves! They prove the great response of universities as a driver of innovation and the economy, as well as showing how diversely start-up founders work and also strengthen the scientific and economic business region of Berlin/Brandenburg with their companies. This trend is continuing to grow and creates a substantial share of jobs in the region. Now it is important to secure and expand the opportunities that have been developed. A great deal of entrepreneurial potential is still available at the universities and should be cultivated. We ask that the political and business leaders of Berlin and Brandenburg support these contents, but also primarily finance and stabilise them. This is a worthwhile investment that will ultimately benefit everyone.
8 Universities as drivers of current start-up activity In 721 of the established enterprises, about 17,000 people were (FTE) employed and approx N = 761 In which year was your 1.7 bill total turnover was achieved in On the average 79 % of the jobs created until 2013 are staffed by academics. Rooted in the region 85 % of the enterprises were founded in Berlin Brandenburg. Positive development of start-up figures since beginning of start-up promotion 73 % of the enterprises were established during the past 10 years; of these, 40 % since Frequency % Percent 10 % before N = % In which industrial segment Media, arts, culture, design 17 % Non-technical consulting and research 16 % Software and ICT services
9 enterprise formally established? B2B services dominate In 69 % of the start-ups, consulting, creative and ICT services are the focal point of business activities % of the start ups mainly cater to other corporate clients (B2B) or public sector clients (B2G). Valuable promotion and support by universities is your enterprise primarily active? 42 % of the founders have used start up support offered by the universities. 38 % of the established enterprises continue to maintain contacts with universities or cooperate with them. 13 % Industry 12 % Technical consulting and research (incl. architecture & planning) 12 % Miscellaneous services 9 % Trade 39 % have received funds for the intended start up. 66 % have declared their willingness to actively support other start up founders in their plans.
10 Which resources are you using or plan to use to cover the financial requirements in your company? Multiple answers possible N = 691 Revenues and surplus reserves from previous years, if applicable 83 % Self-funding by individuals in the start-up team 53 % 31 % Funding by external capital investors (e.g. banks, family, friends or VC companies) 0 20 % 40 % 60 % 80 % Team start-ups in the majority Mostly self-funded 57 % have founded enterprises in start up teams of two or more individuals. 80 % of start up teams only have academics on them. 47 % of the teams have founders from various universities working together. 83 % cover their financial needs from regular revenues and surplus reserves. Only 31 % resort to funding by external capital investors. External funding is sourced mainly from relatives and friends (49 %), bank loans (42 %) and investment capital (40 %). In 2013, the business share of founders in their own enterprise was an average of 89%.
11 Sponsored by Participating universities
12 SURVEY OF START-UPS 2014
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