Berlin is the IT Start-Up capitol
BITKOM demands better financing for IT-Start-Ups in Germany
Berlin, November 20, 2012: Berlin and Munich had the greatest number of IT-Start-Ups of all German cities within the last year, according to a recent study by Germany’s Federal Association for Information Technology, Telecommunications and New Media (BITKOM).
Despite of many success stories and most start-ups being able to fully finance themselves after three to four years in business, better funding of such new firms is necessary in order to encourage more founders to an early start. “Banks, Venture Capital and public funding is barely relevant at this point in time. If we want to make IT-Start-Ups big in Germany, we need to improve financing of such businesses as soon as possible”, says Professor Dieter Kempf, president of BITKOM. The study’s findings show that the image of a young graduate student starting an IT-firm is a myth, and that “success stories such as Facebook are very rare in Germany”, according to Kempf. On average, founders here were 38 years old and had over 17 years of previous working experience.
About 60 percent of start-ups are still operating successfully after five years in business. Kempf emphasizes that banks and private investors could profit immensely from such companies if they step up investment efforts in the future.