Investment in Berlin startups jumped by €1 billion this year, study shows

Venture capital investments in German startups hit a record level in the first half of 2017, with Berlin seeing a huge rise in funding for its startup scene, a new report shows.
Funding rounds for startups in Germany and the overall value of funding hit record levels in the first six months of this year, a report released this month by professional services firm EY reveals.

The total number of investments in German startups rose by 6 percent in comparison with the same period in 2016, to 264.

But the really explosive growth was seen in the overall size of investment. In the first half of this year, €2.163 billion of investors’ money went into startups, an increase of roughly €1.2 billion in comparison with the first half of 2016.

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EasyJet announces Berlin expansion and more flights

Airline in talks with other carriers to allow booking of more connecting flight.

EasyJet Europe, the sister airline set up to preserve easyJet after Brexit, has accelerated its growth by announcing rapid expansion in Berlin and new long-haul connections at Paris and Amsterdam.

The easyJet chief executive, Johan Lundgren, said: “There’s no doubt that the growth potential is in Europe. The UK will always be a critical market, but we have more to go at in the European mainland.”

EasyJet expects to fly 5.6 million passengers this year from Berlin, making it comfortably the biggest airline in the German capital, ahead of Lufthansa.

Lundgren added: “The German population have paid too much money to go on flights and that’s something we want to change.

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How Berlin Became the World’s Coolest Capital City


The German capital has grown from political pawn to global trendsetter. By Eliot Stein.

In 1987, Berlin was a divided city, cleaved in two by a concrete wall and treated like a political pawn in the Cold War freeze separating Western capitalism from Eastern communism.

While Americans watched as President Reagan stood by the Brandenburg Gate that June and demanded, “Mr. Gorbachev, tear down this wall!” stories of Berlin’s industrial techno temples, bohemian squats, and sweat-driven, all-night raves had already helped to put the city on the map for hedonists everywhere.

Thirty years later, the German capital has leveraged its legendary climate of cultural experimentation, DIY creativity, and free-wheeling spirit born from repression to become one of the most achingly hip places on the planet. Even as it’s catapulted to the center of European power and faced growing gentrification woes, Berlin remains a dynamic cultural trendsetter—a place whose live-and-let-live ethos has lured artists, activists, and visitors since Berliners swarmed the Wall with sledgehammers in 1989. The numbers don’t lie: In 2015, Berlin surpassed Rome to become Europe’s third-most-visited city, behind London and Paris. Last year, it welcomed a record 12.7 million visitors—more than 3.5 times its population, six times the number that visited West Berlin in 1987, and 4.5 times the number that visited the city in 1990 following reunification.

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The Case For Investing In Berlin’s Real Estate

Article written by Christian Schulte Eistrup, managing director of Optimum Asset Management, 2 January 2018, in Wealth Briefing

Berlin has changed considerably in recent years, yet it remains one of the most compelling market opportunities and appealing cities in Germany. The capital still offers excellent value; provided a proactive investment approach is taken.

We were an early entrant to the Berlin property market in 2006, when the city was not so popular. However, as evidenced by the city’s fourth successive appearance atop PricewaterhouseCooper’s Emerging Trends in Real Estate survey, Berlin has entered new territory.

The property market in Berlin is booming and offers great value to businesses. It is one of Europe’s most dynamic destinations for tech companies, large and small. The Sony Centre deal in November was one the largest European real estate deals in 2017.

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Brexit impacts real estate as investors favour Germany over UK

As British researchers focusing on all sectors of the UK economy continue to attempt to confirm if Brexit will have a positive or negative impact on the market as a whole, new figures suggest investment-friendly sentiment is in the early stages of turning its back on Britain. Despite record investment in London, particularly in early 2017, German real estate opportunities have eclipsed the desirability of their UK counterparts for the first time – possibly in anticipation of a wider financial shift toward the mainland following Britain’s divorce from Brussels.

(. . .)

Just one week later, however, a new study from online real estate investment platform BrickVest has suggested the opposite. The online financial marketplace allows clients to invest in institutional quality real estate globally. Leveraging data from its platform and a survey of 3,500 professional real estate investors from a number of the world’s largest economies, the company has concluded that the continuing saga of Brexit is having an impact on the attractiveness of UK property. According to the analysis of BrickVest’s latest Commercial Property Investment Barometer, 33% of investors named Germany as their preferred destination.

This is the first time that Germany has been chosen as the number one region to invest in ahead of the UK, which was selected by just over a quarter of respondents, at 27%.

. . .

Full article here (consultancy.uk)

Berlin Retains Top City Billing in Emerging Trends 2018

Berlin has been ranked the top city for investment and development for the fourth year in a row by Europe’s real estate community.

The German capital came first out of 31 cities in Emerging Trends in Real Estate Europe 2018, the annual forecast published by the Urban Land Institute and PwC. The report is based on the opinions of more than 800 property professionals.

(. . .)

Equity and debt are expected to be just as plentiful in 2018, despite the threat of rising interest rates, while this year’s high levels of investment are forecast to continue.

The fact that German cities once again took four of the top 10 spots in the report’s score card of prospects ‘is no surprise’ says the report’s section discussing Markets to Watch. ‘Germany has been steady state for a long time now. With Berlin, people truly believe it’s going to become a major city’, a pan-European financier says.

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Article written by jane Roberts, in Market Watch.

Investment in Berlin startups jumped by €1 billion this year, study shows

Venture capital investments in German startups hit a record level in the first half of 2017, with Berlin seeing a huge rise in funding for its startup scene, a new report shows.
Funding rounds for startups in Germany and the overall value of funding hit record levels in the first six months of this year, a report released this month by professional services firm EY reveals.

Investment Capital Berlin - Source: EY

The total number of investments in German startups rose by 6 percent in comparison with the same period in 2016, to 264.

But the really explosive growth was seen in the overall size of investment. In the first half of this year, €2.163 billion of investors’ money went into startups, an increase of roughly €1.2 billion in comparison with the first half of 2016.

That growth was mainly driven by the e-commerce sector. At €939 million, over 40 percent of overall funding went into e-commerce. But health, FinTech and software startups all saw significant investment growth.

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Berlin’s not perfect, but Samsung is right: it’s more fun than London

Felix Petersen, managing director of Samsung Next Europe, reportedly says that his company will not set up its headquarters in London. It’s just “not a fun place to live unless you are really rich”, is the rationale. Instead, Petersen and colleagues will set up shop in Berlin, hoping to find a home that is both far more enjoyable and affordable.

Club in Berlin - Photograph: Christian Jungeblodt for the Guardian

As a Berliner, I can give Petersen some idea of what he can expect.

Certainly, there are things to say about London, where I lived for 14 years before moving to Berlin. The last time I was there, very recently, a signal failure saw the cancellation of all trains between Paddington and Slough in the very middle of rush hour. No rail replacement bus services were arranged: people were simply expected to trek home with the aid of suddenly exorbitant taxi fares. For one of the most expensive transport systems in the world, there didn’t seem to be much bang for your buck. It seemed to be a fitting metaphor for a town apparently desperate to become Geneva-on-Thames.

One can see why Petersen’s eye might settle on Berlin, for it has long been seen as a mecca for tech startups, with its lower costs allowing them to recruit and retain young talent. Samsung’s arrival may mark a greater maturity of that market, allowing younger companies to rebase in a capital more easily accessible than London or San Francisco.

Petersen and colleagues will find much to love in Berlin. There are parks, lakes and forests within a short train ride, nightclubs on which the sun never sets. There are theatres, food markets, streets of endless bars.

. . .

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Entrepreneurs, Academics & Entrepreneurial Academics succeed in Berlin

With Berlin’s plethora of life science research and academia, opportunities abound for biotech entrepreneurs. Here’s how the city bridges the gap between science and business!

So much research, so many opportunities for academics and entrepreneurs. Berlin boasts 35 large research institutions focused on life sciences, and around 130 hospitals — including Europe’s largest and most renowned university hospital, Charité. The research clout of Berlin described through quantity is impressive on its own, and the city has the quality to match.

Two German institutions dominating the Nature Index as some of the most prolific publishers in the magazine count with institutes in Berlin: the Max Planck Society, number four on the list, claims Institutes of Infection Biology and Molecular Genomics, and the Helmholtz Association, number eight, has the Max Delbrück Center for Molecular Medicine. In fact, our editor, Evelyn, was inspired by Berlin’s top-notch research to move here from New York City for a PhD in chemistry and chemical biology at the Freie Universität!

. . .

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Look out, London. Berlin’s startup scene is ready for a Brexit bonanza

Startups that previously looked to London are being wooed by Berlin’s fast-developing scene. But can Germany capitalise on Brexit uncertainty?

At a co-working space on Friedrichstraße, Berlin’s startup economy is getting ready for Brexit. Mindspace’s first location in Germany, opened in April 2016, sits in the heart of Berlin’s Mitte district, flanked by high-end fashion shops and perfumeries. Its walls are adorned with hand-stencilled signs directing people, in English, to the “yummy kitchen” and “awesome offices”. It feels exactly like the startup scene in London – and that’s deliberate. What London stands to lose after Brexit, Berlin hopes to gain.

(…)

“Berlin is starting to be considered as a startup ecosystem, particularly targeting the tech startup scene,” says Nijvenko. The company’s “official language”, she explains, is English. All signs, documents and posts on the community’s private Facebook group are auf Englisch. Its co-working spaces bare an uncanny resemblance to a template Silicon Valley, faux-hipster style – superfluous clocks; plush, well-worn armchairs; Communist-era televisions; and work from local artists adorn almost every remaining inch of space. Around 760 members pay between €250 and €450 per month (£215 and £390) to use the space, with the two additional sites in Berlin upping capacity to more than 2,000 people. Business is booming. “The political incentives right now are targeting the startup ecosystem. Berlin is very affordable, so for startups it’s the best place to be,” says Nijvenko.

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