Vive l’innovation – what the German Startup ecosystem can learn from France

Bonjour Community,

although the rivalry between France and Germany has been of a more friendly nature in recent decades, it still exists. Especially with regard to the startup ecosystem, our neighboring country seems to have a few things ahead of us. In the past, we attended a few French startup events, such as the Viva Technology , the Big Conference , and La French Tech Munich ’s Servus Scaleup. Enough to give you an insight into what Germany can learn from their French colleagues. But first: THE NEWS!?

News from Rockets, Unicorns and Cucumbers?

?? Munich-based AI-startup Retorio raises 9M euros in their current financing round. The company offers a video-based AI coaching platform.

?? Net loss of 145 million euros for Trade Republic: Berlin-based unicorn reported that this was mainly due to increased costs

?? Auto-no-more-driving: US-based mobility company Cruise, which belongs to GM, takes all self-driving cars off the roads after an accident.?

Now let's take a look at the French startup scene and find out what our neighbors are doing better than us Germans.

Status où??

Let’s break down the hard facts: the Germans do indeed have more unicorns than France. That speaks in favor of the German startup ecosystem. But at the same time, the number of startups with valuations in the billions is growing much faster in the neighboring country. Under Macron's government, the goal of 25 unicorns in 2025 was achieved three years earlier, in 2022. In general, interest in these young companies seems to be much greater. President Emmanuel Macron appears – digitally or in person – at almost every major startup event in France. At the same time, in Germany, Vice Chancellor Robert Habeck can't even make it from Berlin to Munich for the Bits & Pretzels .?

France sets specific and, above all, very high targets concerning the startup world. In addition, the government supports at many nooks. With La French Tech , there is even an organization that specifically deals with partnerships between startups from France and from other countries. In addition, they’re pushing French corporates to consume French Tech and work together with national startups. Although such initiatives also exist in Germany, they have much less impact on the ecosystem.

The “German Angst”

Well if you’ve already heard of this term, you’re probably aware of the willingness of the average German to take risks. We can tell you: it’s pretty low. And this is also reflected in the allocation of venture capital in this country. It is difficult for start-up teams to obtain. Germany’s digitalization is still far behind other countries – like France. The country has a much greater affinity for digital technologies. This also increases acceptance from the customer side. This in turn makes tech companies in France more profitable than in Germany and the risk for investors is correspondingly lower. The general reluctance to take entrepreneurial risks in Germany sometimes holds back the development of great ideas. As a German, one might think that it is a good decision not to invest saved tax revenues where they could potentially be lost. But unlike us, the French have recognized that there are solutions to current problems. Whether it's the environment, the shortage of skilled workers, or digitization. Startups have countless great ideas that can advance an entire country.?

Don’t have too much Angst – it’s worth it!

What startups can learn

And within the startups themselves? French founders do not hesitate when it comes to marketing. They establish communication measures at a very early stage, whereas German founders are usually only tinkering with the idea as it matures. One can only speculate which approach is really better. But one thing is certain: those who get involved with marketing early on also lay the foundation for a well-known brand sooner. This also makes you stand out positively to potential investors.

Can Germany catch up with their neighbors? What else can they learn from France? Or is there even anything France can learn from Germany? Feel free to comment your thoughts!

à plus!

Raphael, Saskia & the SC-Crew