An encouraging result
Berlin is chasing records again! This is shown, among other things, by the news that the incredible sum of 10.5 billion Euro was invested in Berlin startups last year. This new record is not a coincidence, but is rather the result of the hard work of everyone involved. Founders in Berlin have not been overwhelmed by setbacks. The team around Managing Director Dr. Stefan Franzke is also very pleased that Berlin Partner has received international awards for the best existing client support, digital applications and specialisation in Cleantech (fDi Strategy Award) and that the Business Immigration Service has also received the Benchmark rating (Harvard Business Review). The past two years have presented Berlin’s economy and entrepreneurs with major challenges. Given the extraordinary circumstances and the expected dramatic effects of the mitigation measures, Berlin’s economy has proven its creativity and resilience in the crisis and has delivered results in 2021 that allow us to look to the future with optimism.
This is also reflected in the Berlin Partner result: In the 290 projects that Berlin Partner successfully supported and completed last year alone, 6,708 new jobs were created – which is roughly the same as in 2016. In the process, companies have invested around 637.8 million Euro. The reputation of the innovation location Berlin remains good, both at home and abroad, among companies, investors and talents: Last year, Berlin Partner again settled 83 companies in Berlin (45 of them from abroad). Most international settlements come from Europe, followed by North and South America, the Middle East and Asia.
Stephan Schwarz, Senator for Economics, Energy and Public Enterprises: “The Berlin economy has returned to its growth path after the slump caused by the corona pandemic. Industry in particular is in a stable condition with a growth in sales of three percent in 2021. This is matched by Berlin Partner’s good key figures on relocations and expansion projects, which make it clear that confidence and optimism have returned in many areas. However, some sectors have been particularly affected by the pandemic – trade, gastronomy and the event industry have suffered greatly. It is precisely for these companies that we will provide new impetus with a restart program for the Berlin economy and help them emerge stronger from the crisis.”
In 2021, Berlin was once again the founding capital of the Republic of Ideas Germany. More than half of the venture capital invested in start-ups in Germany, 10.5 billion Euro, went to Berlin companies last year (previous year: 3.1 billion Euro). Berlin is a long way ahead of the runners up Bavaria (4.4 billion Euro) and Baden-Württemberg (600 million Euro). Of the ten largest investment initiatives registered in 2021, seven went to Berlin companies and three to young companies based in Bavaria. Most of the money went to FinTech/InsurTech companies, which totalled 3.8 billion Euro (previous year: 0.6 billion Euro), and e-commerce start-ups, in which 3.7 billion Euro were invested (previous year: 1.0 billion Euro). Berlin was able to maintain its position as Germany’s leading start-up location last year and once again recorded a significant increase in financing activities.
In addition, Berlin was voted the best start-up location in Europe for the first time last year. According to the Startup Heatmap survey 2021 conducted in around 1,300 founders, Berlin is the best city in Europe to found a company. Berlin performed particularly well among respondents in 29 different countries, overtaking London as the leader for the first time.
Dr. Stefan Franzke, Managing Director of Berlin Partner: “I’m always making a comeback but nobody ever tells me where I’ve been,” that is what Billie Holiday is supposed to have said. Berlin was never really gone away, but it’s nice that we’re back again to show our partners what makes us special: Diversity, openness and being different, people and companies, creative people and technicians, loud and quiet. After two extraordinarily challenging years, we have big plans for 2022. And we have started right away: At the Expo in Dubai in February we were finally able to advertise Berlin again as a business location and place of longing – face to face. With digital solutions, we have been able to maintain our numerous and diverse contacts all over the world. Now we want to make new contacts again. This is best done on site, in personal encounters, in a mutual exchange. Our result for the past year shows that Berlin companies, especially the founders, have not been put off by the many setbacks. That impresses, encourages and gives us momentum to do our best for the Berlin economy again this year.”
The projects supported by Berlin Partner also provide important economic impetus for the entire Berlin economy: According to calculations by the economists at IBB (Investitionsbank Berlin), the additional investment and employment effects triggered by Berlin Partner will support gross domestic product by a total of 1.3 billion Euro in the period 2021 to 2023. In the same period, public revenues will increase by almost 170 million Euro due to the additional value-added effects.
After two extraordinarily challenging years, the Berlin Partner team has big plans again. At the Expo in Dubai, a team once again promoted Berlin as a business location and a place of longing – face to face. From 14 to 20 February, Berlin Partner took over the German Pavilion at Expo 2020 in Dubai. During this time, Berlin presented itself to visitors and decision-makers from all over the world as an innovative and creative place to live and work. At the same time, Berlin Partner organised a delegation trip with a total of 14 start-ups and 24 founders to the United Arab Emirates. During the trip, participants got the opportunity to attend networking events, visit Expo 2020, pitch at the Startup night and visit industry-relevant local companies; they had the unique opportunity to meet face-to-face with Dubai companies, investors, potential business partners and customers.
For more information and graphics on Berlin Partner’s Annual result 2021, please visit: www.berlin-partner.de