Over the last decade, Berlin has developed into a leading technology hub in Europe. Tech experts call it a startup hub as a new startup is founded in Berlin every 20 minutes. That is why it has been ranked as one of the top 10 startup hubs in Europe. The European tech city is home to more than 100,000 technology professionals.
With all types of top IT companies headquartered in the city along with a variety of startups, there are plenty of reasons for tech experts to praise Berlin as the tech capital of the world.
The government of Germany has also invested a lot of money in Berlin to make it a powerhouse for innovation and the economy. In addition to technology, the city is also a hub for fashion, art, and creativity, with many travelers visiting every year to experience German culture.
As the city was reunified, massive demographic changes and economic shifts led the city to be impoverished, with a lot of underused space and depopulated regions. The first groups took advantage of low rents, and they were not tech startups. The growing business culture and party scene attracted other industries like fashion, tourism, media that began changing the poorer neighborhoods into hip ones.
Let us explore in this article how Berlin evolved to become the world tech capital and attract tech companies from every country.
Berlin was the perfect geographical location for startups due to the low costs of living and plenty of capital cities in its vicinity. All these good reasons enabled tech companies from Silicon Valley to partner up with Berlin’s local startup companies to gain entry into the European market. Many AI startups entered the market who could easily sell their services and products in Germany, France, Italy, and nearby countries. Startups have the advantage of moving to a new country once they establish themselves in Berlin.
Low Costs of Space
Berlin has been known for its low rents and accommodation due to the fall of the Berlin Wall and reunification. Unlike the expensive Silicon Valley, Berlin was cheaper, convenient, and less risky for startups and tech companies.
Attracted global talent
Berlin’s vibrant environment and growing cluster of tech companies made it a hub for global talent. Germany’s openness and ease of immigration is another good reason that attracted professionals from every country to its capital. The VISA was easy to apply and obtain for foreigners, and startups know well what to do to attract the talent they need for their business.
Financial Capability for Startups
Berlin’s financial status made it convenient for entrepreneurs, especially the startups who wish to set up their business in Germany. They have an advantage as they don’t need to go through many hurdles for setting up a business in Berlin.
The start-ups also have easy access to fundings as compared to other startup hubs in Europe. It is convenient for new companies to approach venture capital firms in Berlin. Moreover, these ventures are familiar with local markets and have tons of experience in offering loans for startups. This increases the chances of startups getting loans and funds from such investors.
Equally suitable for big players
The energetic startup scene of Berlin has also attracted large companies like Deutsche Telecom AG, Deutsche Bank, and Cisco Systems. These tech giants want to take advantage of the workforce skilled at ecommerce and digitalization. Large companies are also helping raise the tech hub’s profile on the global stage. It means there is steady expertise and funds available for the capital. Also, the local companies understand the market and therefore can compete in any market in the world.
Berlin is a hub for creativity.
The potential of Germany’s tech capital is not limited to technology. It is home to compelling arts and Germany’s local culture. The art and culture attracted creators and visionaries to transform Berlin as a mix of art and technology, and ad tech is one of the results of that transformation. There are five factors that contribute to cementing the innovation hub for startups, advertising networks, and performance marketers.
Many entrepreneurs have already built successful businesses and helped a new generation of startups in Germany, and foster a culture of innovation, mentorship, and ideas exchange.
Social and Creative Capital of Europe
The startups in Berlin can easily break through the social and cultural barriers. As the city is home to a diverse range of European cultures, it allows different types of individuals to create a community without any reservations. That is why natives of the country are more pragmatic as compared to their counterparts in European countries. Local startups can tap into a wide talent tool as compared to other cities in Germany.
The city is also a hub of creativity and attracts artists, poets, and performers from every corner of the world. Overall, Berlin is a center of innovation, art, graphic design, music, fashion, and publishing because of its vibrance and diversity.
Job prospects in the Berlin technology market
Unemployment in Germany, in general, is one of the lowest in its history, and in Berlin in particular, the unemployment statistics reached a record low last year.
In January 2017, they reached their lowest level since the fall of the Berlin Wall, which used to cut through areas with high-tech companies, modern offices, and an exciting, future-oriented environment.
Many of these jobs are in the technology sector, which means Berlin certainly remains the place to be for those working in the growing world of digital development or the information technology (IT) industry in general.
Expansion: Which niches are growing?
Like all industries here, the Berlin technology market also has its strengths.
Sectors such as Healthcare Technology and Machine Learning are currently important in Berlin’s startup scene, but so are other areas such as FinTech (financial technology).
As in other large technology centers, the market for data security is also growing and is expected to continue to grow with the imminent entry into force of the General Data Protection Regulation (GDPR) in the EU.
Berlin has much to offer, from free education to stability and an attractive environment for jobs and business. Combined with opportunities for entrepreneurship and living style, it should keep growing as startup capital for decades to come. So, if you are a tech professional, you can consider Berlin to start or grow your career and excel ahead in life.