Heidelberg is once again among the top cities for start-ups in Germany

A new study by the Start-up Association and startupdetector shows that startup founding activity in Germany in the first six months of 2023 has increased by an impressive 16% compared to the last half of 2022, with Baden-Württemberg and especially Heidelberg among the shining stars of the movement.

According to the current report, the trend of previous years, in which Berlin and Munich led the list of German startup hubs, has begun to shift. While Berlin solidified its position with a 40% increase in new startups and Munich stagnated on a per capita basis, Baden-Württemberg in particular showed a clear upward trend. With three cities as research-centric founding locations in the top 5, Baden-Württemberg stands out as a strong hotspot in the startup ecosystem.

Heidelberg also claimed a spot among the top 5 cities in Germany in terms of the number of new startups per 100,000 inhabitants. This underscores the increasing importance of cities outside the traditional startup hotspots of Berlin and Munich, showing that regions can gain a foothold in the startup ecosystem by developing their own profiles and their high relevance in the German startup ecosystem.

The report highlights that almost all industries are on the rise. Notably, the tourism sector, which recorded the largest gain with an increase of 111%. Other growth sectors include mobility, food, and software. However, the blockchain and crypto sector experienced a significant decline of 62%.

These latest figures also show that, despite a general revival of the startup scene, Germany is still characterized by significant regional differences, with a particularly strong upward trend observed in Baden-Württemberg and Berlin.

The findings of this report underline that the founding landscape in Germany is dynamic and multifaceted, and it continues to evolve. The rising importance of cities like Heidelberg and regions like Baden-Württemberg demonstrates the diversity and competition in the German startup landscape, and bodes well for continued positive development in the future.

You can find the complete report here.

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