Of course, the Munich start-up scene is not a hidden champion, the city on the Isar is at the forefront. After Berlin, the Rhine-Ruhr metropolitan region and the start-up regions of Hamburg and Stuttgart/Karlsruhe, Munich is one of the five start-up strongholds in Germany. According to the current Startup Monitor, the percentage has increased significantly. So there is something going on in Munich and the city is far more international than the Bavarian turmoil sometimes suggests. We have the top factors in 2022 that make up the Monaco start-up ecosystem and show what you can expect as a founder in Monaco.
Factor 1: Strongly growing industry in Munich
Entrepreneurial diversity prevails in Monaco, and at a high level. If the world's largest insurance companies like alliance AND Monk Kingnewcomer Dax Wirecardslarge long-standing companies such as Siemens AND BSH Bosch or in the automotive industry BMW AND Audi – here it is not messed up but stuffed. Under:
- 7 DAX30 companies
- 5 MDAX companies
- 8 TecDAX companies
- 5 SDAX companies
Information and communication technology, services, research and knowledge-intensive sectors – such as life sciences, medical and environmental technologies – as well as cultural and creative industries are considered to be Munich's growth drivers.
Benefits for founders:
Strong and large companies in the region are rarely competitors for startups, but rather partners. On the one hand, you can maybe dock directly with one of the companies when planning your start-up: you have a new idea to regulate the energy needs of a residential building… then go to eins energie. Modern hospital administration technology could be tested for suitability within the hospital.
In addition, the big ones naturally ensure a base of well-trained specialists who could become important in your start-up project.
Factor 2: Monaco has the TOP 1 university for start-ups
Most startup founders have an academic degree. Consequently, universities that produce particularly large numbers of founders are particularly relevant to a start-up ecosystem. THE Technical University of Munich is at the top for the third consecutive year, according to the current Startup Monitor. Generate more than 50 startups every year. The founders benefit from a stable network for the industry and the EntrepreneurTUMuniversity-affiliated institution that accompanies young entrepreneurs from foundation to IPO.
These success stories are also possible through the Entrepreneurial Center on 6,100 m2. The unique infrastructure for the founders includes a high-tech MakerSpace workshop with modern machinery for prototype construction and small series production. UnternehmerTUM is networked with global players such as Google, Intel or SAP as well as with research institutes and universities worldwide, such as the University of Italian Switzerland in Lugano.
Benefits for founders:
Many start-ups find excellent development potential in Munich's university environment. The Ludwig Maximilians University, the Technical University and the Munich University of Applied Sciences enjoy an excellent reputation worldwide and work closely with the start-up scene. There is also better knowledge transfer: 20% of Munich startups collaborate with scientific institutions; In all of Germany it is only 16%.
Factor 3: High Potential and Human Resources
According to the current Startup Monitor, startup teams consist of an average of 2.4 founders and 13.3 employees. About three quarters of all startups are born in teams (75.5%). Monaco has the largest number of team start-ups nationwide (81.1%). Team formations are often more successful from an economic point of view: those who set up with partners can compensate for technical or commercial deficits, have more equity and earn points with investors for the various skills.
Munich startups are more optimistic than startups from other German cities: four out of five startups in Munich expect increased sales. Also, only startups plan in Berlin more new hires of employees for the current year compared to Munich – this also speaks of the growth of Munich's start-ups.
Munich startups are especially international: Monaco has the highest percentage of foreign founders (9.9% from other EU countries / 5.9% from non-EU countries).
Factor 4: Lots of venture capital in Monaco
Monaco has the most self-financed startups (26.2%). But for start-ups with plans to grow, venture capital is the primary source of funding. In particular, the ecosystems of Berlin (29.1%), Hamburg (18.6%) and Munich (19.7%) are often financed by VCs. Some examples of VC donors:
- If you base your business on the Internet, you will find help at Venture Stars in Munich. For innovative ideas, support in practical or financial activities is offered here. The founders benefit from the company's experience and the existing network.
- THE BayStartUP is the institution for foundation, financing and growth in Bavaria, financed by the Bavarian Ministry of Economics and Business. There are several competitions for business plans and access to finance here.
- Other important incubators are Wayra AND YOU ARE NOW.
- Well-known venture capitalists are Acton Capital Partners, Holtzbrinck Ventures AND Monaco Venture Partners.
Reading tip: You can find an overview of the VC scene in Munich and other funding contacts here… Setting Up a Company in Munich: Business Incubators, Hubs & Contact Points | Overview 2020
Factor 5: Munich's cool coworking scene
Even in smaller cities, an active coworking scene is an indicator of start-up activity. Where many founders in lean mode do without renting expensive office space and meet in special rooms, something is up.
Munich knows about coworking: allelynet about offers office space by the hour, day or week. Likewise Combine 56 with reception, meeting room and mailbox. Another is Smart village. You can find more spaces in our Coworking directory for Munich 2022.
Benefit for founders:
Coworking isn't just cheap office space. The idea of the startup community lives on in many spaces, exciting events take place and scene networks. Almost like the preliminary phase of the hubs, founders can dock here for now.
Factor 6: Munich is more than Oktoberfest
Of course, the Oktoberfest also defines the city on the Isar internationally. And so some events related to the founders join the beer lovers festival. Yet you go above and beyond like that Bits and prezels Shows. After a great success in Berlin, the real time instead of. It is a meeting between business founders and successful entrepreneurs who actively exchange ideas on current opportunities, developments and trends and also discuss general topics related to company foundation.
An overview of the most important events for founders in Munich can be found here.
Benefit for founders:
Boot events are an essential part of a successful boot ecosystem. This is where people network, where they pitch and where business is done. And founders can learn from other founders as well as professionals.
Factor 7: Success Stories: These successful startups are located in Munich
Many startups from TU Munich, but also more… The startup map Munich currently lists almost 1000 startups. Sure there are others.
We also have a number of success stories from the founders of Monaco in our founder stories:
- History of the Auroco foundation
- History of the Twostay foundation
- History of the foundation 400
- History of the founding of urgrow
- History of the founding of the teleclinic
- History of the urmo foundation
- etc. Here
You should also know about these very successful Munich startups:
- Alaska Construction startups with a valuation of over 13 million euros, in which Holtzbrinck Ventures and Picus Capital (Alexander Samwer) have invested
- alyneRegTech provides its customers with software that gives them an overview of regulatory and legal requirements
- Clear Sales assistant software for internal sales reps
- Cluno approximately $36 million from investors such as Valar Ventures, Peter Thiel's investor, Acton Capital Partners and Atlantic Labs for the all-vehicle supplier
- energy trading platform enmacc
- Kaia Munich healthcare startup with an app for chronic back pain
- conux intelligent sensor systems for Industry 4.0 applications, investment by e-commerce giant Alibaba, New Enterprise Associates (NEA)
- person US$40 million investment in HR startup
- Focused users SaaS consent management platform
Conclusion on the start-up ecosystem in Monaco
The start-up headquarters Munich is already one of the 5 largest centers of the start-up scene, with an upswing. In some respects, the start-up metropolis of Munich has improved from 2018 to 2019: if the momentum continues, the southern German city will easily be able to compete with Berlin and Hamburg.