Start-Up News | September 2023

Start-up numbers increase after difficult 2022

More start-ups are being founded in Germany after the crisis year 2022 according to the German Startups Association. There were almost 1,300 start-ups recorded in the first half of the year, equivalent to a 16 percent increase compared to the second half of 2022. Berlin witnessed growth of 40 percent, with a total of 262 new start-ups from January to June, with Hamburg also recording strong growth (90 new start-ups).

Many new start-ups are also springing up in locations with strong research infrastructure. These include Farmstead, Karloff and Heidelberg to name but a few. The association also reports that the strongest growth was felt in the tourism sector – up an incredible 111 percent. The mobility, food and software sectors also enjoyed significant growth.

Record sums flowing into climate and energy start-ups

Record sums are flowing into climate and energy start-ups in financing rounds. According to Bitkom, the climate and energy sector is bucking the trend that is seeing investor restraint in other start-up sectors, with eight out of ten companies surveyed reporting investor reluctance to inject fresh capital. Germany’s political framework, previously considered a hindrance to investment in the climate and energy sector, has changed to such a degree that investors now have an extreme tailwind according to the dena German Energy Agency. Consultancy firm Oliver Lyman reports record investment of US 12.3 billion in the climate sector in 2022, equivalent to a sixfold increase in total global CC investment compared to 2019 levels.

German start-ups going green

German start-ups are going green in greater numbers as the global market for renewable energies, electric vehicles, heat pumps, and low-emission fuels is set to reach around US 1.7 trillion this year according to the World Energy Investment Report of the International Energy Agency. Three out of ten start-ups already had a green focus in 2021 according to the Green Start-up Monitor published by the Borderstep Institute think tank, with the figure as high as seven out of ten start-ups in the energy sector. This year’s report finds that ecological sustainability continues to grow in importance, with green start-up share numbers reaching a new high of 35 percent compared to the previous year’s results.

AI start-up’s predictive platform to reduce food waste

Multiple prize-winning start-up PlanerAI has developed an AI-based planning platform that supports food producers to reduce food waste. The predictive tool allows food retail quantity levels to be precisely forecast in advance, thereby allowing manufacturers to increase time, cost and food waste efficiency levels. Around 11 million tons of food waste are disposed of annually in Germany, with retailers accounting for approximately seven percent of total food waste. Founded in 2021, the start-up has already won a number of newcomer awards for its BäckerAI (“Baker AI”) platform that allows bakery retailers to plan from the oven to the consumer’s food larder.