Despite fierce competition from the likes of London and Stockholm, startups and small businesses are moving to Berlin. Berlin has always been a place that speaks to young, creative minds. From its vibrant music scene and rich history to its modern, artsy, ‘poor but sexy’ vibe (as described by former mayor Klaus Wowereit), it has always been on the map as a place to be.
However, the ‘poor’ in ‘poor but sexy’ may not describe Berlin’s current state. It has matured into a global city with residents and workers from all wealth brackets. Combine these factors with Germany’s reputation as a world leader in technological innovation and you have the perfect hub for thriving tech startups, creators, and entrepreneurs in the industry.
It’s unsurprising that Berlin has such a fast-growing startup ecosystem as it has been at the centre of business globally for years. However, Berlin offers things that tech startups – like SoundCloud, Clue, Wunderlist, and SAP – find irresistible. It draws them into the city. If we compare Berlin and London, you will see that Berlin has on average:
• More sun
• Higher temperatures
• One-third of the cost of living
• More local connectivity between business founders
• More funding and incentives for businesses
This is partly why moving to Berlin is becoming so attractive to young tech businesses, but there are also more personal factors that Berlin caters to.
The Berlin lifestyle
Other causes of Berlin’s pull on the tech industry lie in how it fosters modern lifestyles. Berlin is known for its healthy attitudes towards a work-life balance. In comparison, London is known for being a non-stop, high-pressure environment focussed on work. Berlin is comparatively laid-back without this intensity, which can be surprisingly unproductive. This is what the younger working generation needs. The number of businesses seeking it out is proof, with Berlin experiencing a 9% jump in startups.
Talk to a startup’s HR team, and you’ll find they receive resumes from Brazil, Ukraine, India, and countries from across the globe. In fact, on average, 30% of the startup employees are foreign-born, with one in 10 founders being foreign. They are moving to Berlin seeking a vibrant economy, huge job market, unique culture, a central European location, and somewhere more visa accessible than other European countries. Berlin’s ability to attract the most talented minds, cheaply, is underpinning it as the current leader for tech startups, and it doesn’t look like it’s slowing down any time soon.
There is support for Berlin’s startup growth from the city and government. There are various initiatives offering services for tech companies, promoting smooth market entrance. One example is the Start Alliance which builds connections to local networks. It can provide free office space for London-based startups applying to the programme. Furthermore, Berlin is starting to take care of young businesses and the people behind them. Berlin was the first of 16 German states to abolish fees for child care, easing the burden on young families.
In all, Berlin offers a fantastic deal for those in the tech industry:
• Affordable living
• Increasing wages
• A great work-life balance
• A relaxed lifestyle
• Open, welcoming society to make networking and connectivity easy
• Excellent career opportunities
• Supportive ecosystem to promote healthy lifestyles
Berlin meets all the criteria to be the European startup capital. Vast amounts of job seekers are having fantastic success working there in the tech industry.
Berlin holds the perfect opportunities for intelligent, creative minds to make their mark on the tech industry. Get in touch with Lennon Wright Associates, the technology recruitment specialists, today to find the right position for your future. Call us on +44 203 146 8758.