Morphais HSTL Technologies GmbH
Rostock. In the first five months of 2022, 1176 new start-ups were founded in Germany. This is 16% less than the same period in 2021.
Geopolitical tensions in Europe and turmoil in public markets, especially in technology, falling valuations, rising inflation and interest rates are leading to greater uncertainty among founders and investors. East Germany has a particular problem with start-ups: Only 7% of all start-ups started in the 5 eastern federal states (excluding Berlin). Saxony-Anhalt brings it back: Of more than 1,100 new companies founded in Germany between January and May 2022, only 5 (0.4%) were founded there. 10 start-ups were founded in Mecklenburg-Western Pomerania.
Berlin took first place (244), Bavaria second (236) and North Rhine-Westphalia third (216).
This is the result of the current “MorphPulse” industry report. The report is published several times a year by Berlin-based venture capital leader Morphais.
Fewer funding rounds:
Capital continues to flow into Germany, but at a lower level. In the first five months of 2022, there were a total of 632 funding rounds for startups under 3 years old – that’s 13% less than the same period last year. There are still large inequalities in the distribution of capital in Germany:
60% of all funding rounds go to companies in Berlin, Bavaria and Hamburg, while only 47% of new start-ups are founded there. North Rhine-Westphalia and Baden-Württemberg receive only 22% of venture capital, while 29% of start-ups are created there.
Most of the funds in Germany went to early round investments. Compared to 2021, the distribution between the 1st and 2nd rounds has changed. This year proportionally more money is flowing into the second round than last year.
Where are the founders? The diversity of founding teams is declining
The ecosystem is still heavily dominated by male founders. 82% of start-ups are started by all-male teams. 18% of founding teams have a woman on board. This number is down from 2021, when 20% of teams had a female member. Unfortunately, it is no surprise that there is no female name among the 10 most common names. The top 3 founder names are Christian, Michael & Daniel. The most common female name is Lisa, ranking 38th among all founder names. And while 11% of founding teams are women, their share of funding rounds is only 7%.
Morphais CEO Eva-Valérie Gfrerer: “Research shows that women are more likely than men to be discouraged by unsafe situations. Therefore, the current economic situation could be a threat to diversity. But access to finance also plays a role: Looking at the funding situation, we see a gap between 11% forming women-only groups and only 7% receiving funding. We need to empower women and help them find the courage to start a business, even in uncertain times. At the same time, investors need to experience diversity in their own teams and give equal opportunities to male and female founders.”
The “MorhPulse” reference is free to use if it is named “Morphais”.
Morphais managing director Eva-Valérie Gfrerer will be happy to answer any questions you may have. We will also be happy to provide you with the entire report.
With Morphais, Eva Gfrerer is building a new Quant VC from Berlin, which invests in pre-seed startup groups. The advantage of “Morphais” is that the VC bases its funding decisions on AI data. As a result, unbiased, better, faster and more comprehensive investment decisions are made. The VC team has been developing the technology platform for the past 24 months and is already delivering very strong results.
Send your inquiries to:
Morphais HSTL Technologies GmbH
Linienstrasse 98, 10115 Berlin