Potential for further growth of the German start-up scene

The German start-up scene has developed considerably over recent years. However, in international comparison with Israel, the United Kingdom and California, there is still room for improvement regarding entrepreneurial spirit and framework conditions. This is the result of an EY study on the attractiveness of start-up ecosystems, which has been conducted in cooperation with Deutsche Börse. There is especially enough upside potential for the regulatory and tax frameworks. Simultaneously, the authors praise the potential for future growth and progress, as well as the economic framework conditions in Germany. Germany and particularly the Frankfurt/Rhine-Main region scores with good infrastructure and moderate real estate prices.

The promotion of the financial sector’s digitalisation at the Financial Centre Frankfurt was especially positively mentioned. A total of seven incubators in the Rhine-Main region (FinTech Hub from Deutsche Börse, Unibator from Goethe University, Accelerator Frankfurt, Main Incubator, FinTech Headquarter, Digitalfabrik from Deutschee Bank, Tech Quartier, FinTech Lab VABN) promote the development of still-young FinTechs and their business ideas. As an incentive for the improvement of the FinTech scene in Germany, the study suggests the expansion of co-working desks. Here again, Frankfurt sets a good example: The incubator Tech Quartier, for instance, offers working space for FinTechs of any size. Business Angels FrankfurtRheinMain – Germany’s largest organisation with around 100 business angels – brings together start-ups and business angels.

The study also highly praises the “Digital Hub Initiative” by the Federal Government. Within the scope of this initiative aimed at strengthening Germany as the leading industrial nation, the Federal Government honoured the Financial Centre Frankfurt as Digital Hub for FinTechs and Financial Services. Thus, the Financial Centre Frankfurt offers a wide range of emerging FinTechs.