Germany's start-ups finding it harder to source financing (picture alliance/dpa | Hannes P Albert)
Almost three quarters of start-ups in Germany plan to raise capital but they are less and less optimistic about sourcing financing at home, according to research from the German Startups Association in Munich.
The oganization's survey quoted 74.1% of start-ups as saying that they want to raise capital in the next 12 months - 4.6 percentage points more than a year ago.
At the same time, however, only just under 30% of the surveyed companies said they had good access to capital and investment in Germany.
Demand for capital has also risen overall, and while last year 41% of companies had capital requirements of less than half a million, this figure is now just over 30%. That is 3 percentage points less than a year ago and 7 less than two years ago.
Overall, however, start-ups are positive about the future, and almost 80% expect their business situation to improve by the end of next year.
The ecosystem for start-ups in Germany is also rated positively by 61% - a good three percentage points more than a year ago. The proximity to universities was mentioned particularly often as an advantage.
Almost 84% of the more than 1,800 respondents whose answers were included in the study said that they would start up their business again. However, 26.9% of them said they would no longer do so in Germany, but abroad. That is almost 10 percentage points more than a year ago. On average, the Start-up Monitor found a decline in employment from 18.9 to 16.7 people per company. This is surprising, as only 14% of companies say that they have had to lay off employees in recent months, while almost 57% have hired new employees.
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