While the ambitions laid out in the German Startup Report paint a promising picture for the future of the country’s startup ecosystem, the reality is that things are moving way too slowly. The clock is ticking, and if Germany wants to truly compete on the global stage, it can't afford to drag its feet. When your house is on fire, you don’t casually look for the fire extinguisher—you act immediately. And that’s exactly what Germany's startup environment needs: action.
Here’s what they must be doing right now:
1. Startup in a Day
Why does founding a startup in Germany still feel like jumping through hoops? The process should be seamless—founding a startup should take a day. We need to make launching a business fast, easy, and efficient, or else we risk losing our brightest minds to more agile ecosystems.
2. Fast-Track Talent Recruitment: Quick Visas and Tax Incentives
Germany must move quickly to attract top global talent. We need fast-track visas and attractive tax incentives to bring in the best people from around the world. The competition for talent is fierce, and waiting months for visa approvals isn’t an option.
3. Mobilize Private Capital—Now
Germany needs to act aggressively in mobilizing private capital, particularly from institutional investors. We can't afford to wait 5–6 years for investment trends to shift. The startup scene needs mmediate financial injections to keep up with global competitors.
4. Bring the German Stock Market Into the Startup Game
Why is the German stock market not more engaged with the startup world? There should be a dedicated effort to make IPOs and investment in startups more attractive. Instead of forming another ministry, appoint a specialized leader to tackle this quickly and efficiently.
5. National Chief Digital Officer (CDO)
Yes, Germany should have a CDO, but only if this person has real startup experience, ideally with exposure to both the German and U.S. markets. We need an entrepreneur, not a bureaucrat, to guide Germany’s digital future.
6. 5% of Public Contracts for Startups
Absolutely, Germany should allocate 5% of public contracts to startups. But the bigger challenge is incentivizing established companies to adopt startup innovations. Offering tax incentives for integrating startup tech could be a step in the right direction.
7. More DeepTech, Less ClimateTech Unicorns
Focusing on DeepTech unicorns makes sense for Germany, but pushing for ClimateTech unicorns is questionable. ClimateTech struggled to gain traction even in Silicon Valley. Germany should avoid repeating the same mistakes and focus on areas with clearer potential.
Long-Term, But Critical (and Maybe Unlikely by 2030)
Some ideas in the German Startup Report are essential but difficult to implement by 2030. Still, they’re worth pursuing:
- A New Federal Ministry for Migration
Does Germany really need another ministry? While important, adding more layers of bureaucracy may slow things down rather than accelerate them.
- English as an Official Language
This would be a game-changer for Germany, making it more attractive for international talent. But realistically, will this happen in the near future?
- European Capital Market Union
If Germany can pull this off in five years, it would be an impressive achievement. But let’s face it—this is a tall order.
Germany Needs to Act - Now
Germany’s startup scene doesn’t have time for slow, bureaucratic processes. If the country wants to be a serious player in the global tech landscape, it needs to accelerate its efforts to foster a fast, efficient, and well-funded startup environment. The world isn’t waiting for Germany, so why should we wait to take action?
Better move NOW FAST, before it's too late.
.jpg)
