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German start-ups running out of money

Although many established industrial companies cooperate with start-ups in order to promote their own digitization, they are in danger of running out of money: a clear majority is complaining about too little capital.

06 Jun. 2019
Photo: Bitkom Research

Bitkom Research has published a report that sees an endangered start-up landscape in Germany: only 18% of the founders consider their capital requirements for the next two years to be covered. The consequences could be fatal for German industry, as although the majority of start-ups hope to raise the necessary funds in the end, at least 27% are playing with the idea of going abroad.

If some of these new, highly innovative companies were to migrate, this could threaten industry’s digital revolution, as the Federal Ministry of Economics and Energy also believes that start-ups are of great strategic importance for Germany as a business location. Family-owned companies and medium-sized companies often see cooperation as a basic prerequisite for the development of proprietary Industry 4.0 solutions.