Start-ups are flourishing - Start-up scene in Bavaria vital - recovering from the coronavirus pandemic
A weak economy and a prevailing bad mood in the business sector have not harmed the entrepreneurial spirit in Bavaria: The state-supported funding agency Baystartup reports lively demand in its tenth year of existence: "2023 was a record year for us with 88 million euros in financing volume," says managing director Carsten Rudolph. Surprisingly, this was the strongest year since Baystartup was founded. "We don't know yet if we'll top that number this year, but it's going in the same direction."
The consequences of the Corona pandemic for the startup scene seem to have been overcome: "We had rather quiet years in terms of applications for business plan competitions," says Rudolph. "However, we have had around 40% growth this year and are therefore back at the level we had in 2019."
Baystartup is an important contact point for startups in Bavaria
Baystartup brings founders together with investors and industrial companies and is one of the most important contact points for startups in Bavaria. The company was founded in 2014 from the merger of two regional predecessor organizations. An important tool are business plan competitions: Expert juries evaluate business ideas and concepts and advise founders.
However, investors are more cautious according to Rudolph's words - and pay more attention to whether a business idea is viable: "The requirements for startups have changed: In the past, it was important what future vision a startup had. Now, in addition, a clear concept with a secured financing plan is important: How will the startup overcome the next five years?"
Successful are the startups that align their solutions closely with the challenges of their customers and can really say: "That's my customer, who buys that because he has a real need for it."
Bavaria is one of the most significant locations for startups in Germany besides Berlin
Bavaria, besides Berlin, is one of the most significant locations for startups in Germany. Many of the local founders are active in industry-related high-tech sectors, according to Rudolph: "Life sciences are strong. We see a lot of medical technology, very much industrial technologies, for example robotics systems or solutions that contribute to automation technology."
As an example, the Baystartup CEO mentioned a robot technology for grasping soft objects - industrial robots are usually designed for the gripping of metallic or hard plastic components in production. "The field of computer vision also plays a major role and other types of sensors," said Rudolph.
More than half of the founders do not come from Munich
Within Bavaria, Munich-based young companies are strong, but Baystartup apparently attaches great importance to supporting foundations in all regional areas. More than half of the founders it supports do not come from Munich. "That means, in other words, we don't tell the regions where startups emerge: 'Come to Munich, otherwise you have no chance'. Instead, we work together with investors who finance you locally, create a network regionally and help with targeted coaching," said Rudolph.
What makes Bavaria special is that most regional actors work hand in hand, at all friction points that may arise. "We often perceive that from other federal states differently - the support for a coordinated startup funding is often missing."
- Despite the economic challenges in Germany due to the Coronavirus pandemic, Baystartup, based in Bavaria, reported a record year in financing volume in 2023.
- Berlin and Bavaria are both significant locations for startups in Germany, with Bavaria having a strong presence in industry-related high-tech sectors such as life sciences and medical technology.
- Baystartup, which was founded in Munich in 2014, is an important contact point for startups in Bavaria, connecting them with investors and industrial companies to help them grow and succeed.
- The economic policy in Germany has been influential in supporting startups, with investors becoming more cautious and demanding clear concepts and secured financing plans before investing.
