2022 | StartupBlink View the Global Startup Map p. 74 Startup Ecosystem Overview The German startup scene is characterized by the country’s federal structure which gives more power and independence to German states, fostering development of a non-centric startup ecosystem. The diversity of the German startup scene can be seen in some of its notable startups and in its two startup hubs, Berlin and Munich. In Berlin, N26 has been established as a successful fintech startup while TIER is focusing on micromobility. In Munich, the focus is on B2B startups and hardware & IoT. Germany has a tradition of producing global scale, high quality corporations like SAP, Siemens, and Bosch. All of these companies are funding initiatives within the German national startup ecosystem as part of their open innovation activities. During the COVID-19 pandemic, Germany demonstrated its deep science infrastructure, with BioNtech creating one of the world’s most sought after vaccines, now commercialized by Pfizer. Germany’s strength and diversity are also reflected in the quality of seed startup ecosystems. Organizations such as ruhrHUB or the City of Magdeburg are actively involved in developing their city’s startup ecosystems. In terms of funding, the public sector offers a diversified support system for startups. For instance, the EXIST grants for starting a business and easing development costs, High-Tech Gründerfonds (HTGF) for seed investment, and Gründung innovativ to help startups during the first years of operations. While most of Germany's 2nd and 3rd tier cities lost rank, there was a notable jump of 182 places for Dortmund, now ranked 204th in the world and 9th in Germany. Munster and Chemnitz also had a great year, advancing 109 spots and 80 spots respectively and entering the top 250. In addition, Magdeburg increased 9 points globally and 3 points nationally to rank 30th in Germany. Some of the most notable losses for Germany’s startup scene include Frankfurt dropping from the top 100 list after a decrease of 49 spots. Notable improvements among German cities in the 2nd half of the Index were booked in Kiel, now ranked 572nd, up 106 positions, and in Duisburg, ranked 666th and up 222 positions. On the other hand, Wurzburg (808th) and Wiedbaden (822nd) dropped 220 and 191 spots respectively. Overall, Germany has 39 ranked ecosystems, which puts the country in 5th position worldwide in terms of the number of ranked cities in the world's top 1000. In response to the results of the Index, the Senator for Economics, Energy and Public Enterprises of the state of Berlin, Stephan Schwarz, said: "Berlin is the city of startups – and a key destination for talent and investment from around the world. Our city boasts an ever unfolding ecosystem paired with the spirit of openness and a strong welcome culture. Berlin is the right place for ideas, for growth and for sustainable development. Be part of it!"