Berlin remains in top 2 most attractive startup hubs in Europe
5. July 2023 - Asking European founders to pick up to 3 cities, where they would start their company if they could choose freely from all cities in Europe, these are the most popular hubs. Since 2016 the Startup Heatmap Europe Survey is tracking the attractiveness of cities for tech founders. London and Berlin have ever since led the ranking, with both 34% of founders choosing them as a potential next destination. In the last two years, Berlin could seize the first place and was recognized as Europe's favorite and most popular location for new businesses. This year, London prevails with a marginal scoring difference (34.93%) and Berlin ranks second in the overall competition (34.04%). Nevertheless, the German Capital remains in the top 2 most attractive startup hubs in Europe and is with a sizeable margin ahead of Barcelona and Amsterdam (both 17%). Paris and Lisbon follow with 12% and Munich (10%) is ahead of Tallinn (9.4%).
Dr. Stefan Franzke, CEO of Berlin Partner: "When Berlin passed London two years ago, I said that the sporting competition for the first place in the professional league was part of it. And this year, first place again goes very narrowly to London. Even though we had to relinquish the overall lead, we are pleased that we are still so far ahead in terms of popularity among founders. We offer one of the best startup ecosystems in Europe, along with a dense network of support services, and that is very much appreciated. The internationality of the city is also attractive to incoming talents. And next year, we want to be ahead again."
Besides the attractiveness, the report also indicates how the listed European cities perform in growing, accelerating, and scaling startups. According to various indicators such as the proportion of international participants in accelerators, the number of Kickstarter campaigns, seed investments, or investment purchasing power etc., Berlin excels in supporting startups at the early stage and scaling up young companies with its top 3 positions in these sub-rankings.
Generally speaking, 71.3% of European founders are optimistic about future developments, around a 4% decline compared to 2021 due to the Russian invasion in Ukraine. If European founders could choose freely, 66% would start again in Europe, as the Startup Heatmap Report 2023 shows. This is an increase from the previous edition as the number stood at 58%. Preferences for Europe are highest in Western Europe, where 79% of founders opt for Europe (Germany, France, Switzerland, Austria).
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