23 July | Euro

One in four German startups may exit domestic market due to lack of investment — Bitkom survey

One in four German startups may exit domestic market due to lack of investment — Bitkom survey

According to a study by the digital association Bitkom, one in four tech startups in Germany is considering leaving the domestic market. Founders worry that the country’s economic downturn could weigh on prospects for securing venture capital and slow down company growth.

Only 23% of respondents believe German startups get enough funding. At the same time, according to Bitkom, 81% of the 152 of participants in the study note that investors have become more cautious due to economic uncertainty in the country.

Despite this, 79% of German companies expressed confidence in hitting their financial targets. However, startups estimate they need an average of €2.5 million ($2.93 million) in venture funding per year, the digital association says.

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