The mood in the German start-up industry improved at the turn of the year. After reaching a low point last summer, the outlook for the future in particular is now more optimistic, according to the business climate survey of the Start-up Association, which was published on Wednesday. According to the survey, a good two-thirds of the founders surveyed (67 percent) expect business to develop more favorably, compared with 54.2 percent in June 2022. In contrast, the assessment of the current business situation showed only a slight upward trend: 49.3 percent of respondents rated it as good, compared with 48.3 percent last June.
Overall, the business climate among start-ups in Germany rose by 8.2 points from 42.4 points last June to 50.4 points. The business climate for the industry is calculated analogously to the well-known barometer of the Munich-based Ifo Institute. 205 start-up founders took part in the survey in December 2022 and January 2023.
German start-ups, which rely on money from investors for their expansion, had experienced a long period of extremely favorable conditions. During the pandemic, they benefited from the fact that digitalization got a boost - for example, in financial transactions, online shopping, and food deliveries. But with the Ukraine war, rising interest rates, and uncertainty about the economy, the market had changed for the worse last year. While some start-ups were still receiving financial injections in the high triple-digit millions in 2021, investments in German start-ups collapsed in 2022. Companies such as the e-scooter provider Tier and the greenhouse start-up Infarm cut numerous jobs.
In the Start-up Association's business climate survey from last June, expectations for future business in the face of the crisis had been even worse than at the height of the coronavirus pandemic in 2020. The more difficult financing conditions and the gloomy mood had consequences: According to the association, 186 start-ups were founded this January, the lowest January figure in the past four years.
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