[European Startup Wave] Berlin Startup Ecosystem at a Glance ②

"Working space, coaching/mentoring programs, and investment can all be connected in Berlin"

Aside from low prices, international atmosphere, and strong government support, Berlin has been able to become a Startup paradise thanks to its active investment ecosystem. In addition to a space for Startups to work, I want to introduce major institutions in Berlin that provide opportunities to participate in coaching and mentoring programs, as well as investment opportunities that provide the capital which is most important for Startups to establish themselves and grow.

"Berlin's diverse start-up hubs"

In addition to the already mentioned Factory Berlin and FinLeap’s H:32, where many fintech Startups are gathered, there are also various spaces that are in charge of accelerating and serve as co-working spaces for Startups in Berlin.

#Hubraum

First, the technology-based Startup Hubraum, operated by Germany’s largest telecommunication company Deutsche Telekom, is a program that connects early-stage Startups in the fields of 5G, AI, and IoT with leading telecommunication companies in Europe. Only selected Startups can move in through the application process. When they move in, they can use the co-working space for free, as well as participate in Deutsche Telekom’s various programs and networking. Korean Startups "Nota" and "Immersivecast" also went through the Startup entry process of Hubraum. Hubraum launched in Berlin in 2012 and simultaneously opened its doors in Krakow, Poland and claims to be a European Startup hub beyond the borders of Germany.

[Figure 1: Hubraum Berlin Campus. Hubraum launched simultaneously in Berlin and Krakow, Poland in 2012 and claims to be a European startup hub. Source = Hubraum website ]?

#Silicon Allee

The next interesting place is Silicon Allee. This organization, which started as a monthly meetup of Startups in 2011, has now transformed into a 7,500㎡ Startup complex in the Mitte district in the heart of Berlin. This organization had a long history before it turned into a place for Startups. The three founders, who experienced the Silicon Valley Startup scene, started a group in Berlin to build a community like this and took their first step as an English blog delivering news about the Startup scene. Soon after, they participated in the construction of the space of Factory Berlin, and in 2017 they designed their own space.

Silicon Allee is very friendly to foreign founders. This is because Silicon Allee started as an organization to solve the problems of foreign founders who have difficulty getting information in German. The Berlin Founder Fund, which started in Silicon Allee in 2019, provides founders with good ideas with an unconditional grant of 2,000 euros per month for two years. Foreign entrepreneurs can get help not only for visa support but also for renting an apartment where they can live for a while through Silicon Allee. All of these facilities and foundations are within the space of Silicon Allee. In addition, networking with the Berlin technology cluster is also an attractive element of Silicon Allee.

[ Figure 2: Silicon Alle's penthouse where various Meetings can be held. Foreign entrepreneurs can not only apply for a visa, but also rent an apartment to live in for the time being. Source = Silicon Alle website]

World-famous companies are also participating in this Startup hub. Microsoft runs Startup accelerator programs in six cities around the world, and Berlin is one of them. Microsoft Accelerator Berlin was launched in 2013 and is designed as a four-month immersive program. It features mentoring and technical training, collaborations with Microsoft, as well as opportunities to connect with investors.?

"More than 50% of German venture capitalists focus on Berlin"

58% of all venture capital investments in Germany are concentrated in Berlin, and the amount of VC invested in Berlin Startups in 2020 amounted to €3.1 billion. Startups in the mobility sector received the most investment, followed by software, e-commerce, and health sectors.

"Berlin's most active VC"

One of the most active VCs in Berlin is Earlybird Venture Capital, with branches in Berlin, Munich, and Istanbul. It is one of the various venture investment companies covering all of Europe and is focusing on initial Startup investments from seed investment to Series B. So far, the assets under the management of Earlybird currently amount to 1 billion euros, and 34 investments have been made in the past year during the recession caused by Covid. Earlybird's most famous portfolio companies include digital bank N26, as well as Wunderlist, which became a hot topic after being sold to Microsoft.

[Figure 3: Portfolio of "Early Bird Venture Capital", the most active investment in Berlin. Digital bank N26 and Microsoft-acquired scheduling app Wunderlist. Source= Captured from the Early Bird website ]?

Next, among Startups in Berlin and London, there is "Project A", which intensively invests only from the Startup stage to the series A stage. It mainly invests in Startups with digital innovation ideas and has invested in Trade Republic, which developed a mobile stock investment app, and Voi, an electric kickboard sharing company.

"Rocket Internet" , a major shareholder of Delivery Hero that took over Korea’s Baedal Minjok, is also a famous VC in Berlin.

In addition, "Rocket Internet", which is known to a major shareholder of Delivery Hero that took over "Baedal Minjok" in korea , is also a well-known VC in Berlin. It incubates and invests in Startups that develop technology, mainly focusing on food, fashion, and daily necessities. Alongside Delivery Hero, Rocket Internet also invested in Hello Fresh, a meal kit company, making it a global VC, investing in Startups located on a total of five continents outside of Europe.

Berlin is a city of clubs, a city of parties, and a city of demonstrations. It is also a city where festivals, conferences, summits, and exhibitions in various fields are held throughout the year. It was a place where people gathered and had many opportunities to discuss and mingle over beer and wine all night long. However, as the fairground turned into an emergency ward for Covid-19 and people could no longer gather, the heat in the Startup scene seemed to cool down. However, as the crisis continued, Startups competed to show off their ideas and presence in an "online, digital, and virtual" space. Now, technically and culturally, an environment has been created, beyond time and space,? in which European Startups can be fully seen in their home ground.

This, on the contrary, means that the ideas that arose in Seoul soon had an opportunity to be introduced in Berlin. What kind of innovation will emerge when the meaning of space and time is lost? Looking at the performance of European Startups, the expectations for Korean Startups are growing as well.

Author: Eunseo Yi (123 factory)

Notice: This article has been edited and adapted from [European Startup wave] of <BizHankook>.

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