Global Location Ranking: Berlin and Munich among the Top Ten for Start-Ups

Published On: January 24th, 2020

No less than two German cities have made it into the Top 10 of global start-up regions in 2019, according to the Handelsblatt. Based on results of a joint study of the British business network Tech Nation and the venture capital platform, the German capital ranks sixth among the global start-up investments with a total of USD 4.5 billion and Munich ranks ninth with USD 1.5 billion. The leaders are, unsurprisingly, the Bay Area around San Francisco (investments of USD 43.5 billion), Beijing (USD 16 billion), New York City (USD 14.4 billion), London (USD 9.7 billion) and Shanghai (USD 7.3 billion). The results show that the German capital attracted considerably more capital than Paris, which ranks seventh with USD 3.3 billion. Stockholm ranks eighth. Hamburg earned rank 22 with USD 200 million.

It was notable that investors put about USD 39 billion into European markets in 2019, mainly investing in the United Kingdom, Germany, and France – their risk capital markets grew by 44, 41, and 37 per cent respectively when compared to the previous year. According to the study, USD 7.0 billion were invested in Germany, USD 12.3 billion in the United Kingdom and USD 5.2 billion in France.

Trends in the USA and China, on the other hand, were negative. With a total amount of USD 116 billion, start-ups in the USA attracted 20% less risk capital than in the previous year, but they still rank first. The decline was much more noticeable in China. Investments into start-ups have fallen by almost two thirds. With now only USD 33.5 billion, Chinese risk capital investments now rank lower thank Europe.

You can find a graphical presentation here.