Friday, June 2, 2023

"Germany bids to rebuild Berlin's buzz for startups"

C'mon Paris,open the throttle and crank up the energy level.*

From Reuters via Yahoo Finance, June 1:

Berlin boomed as a startup hub after the Wall fell

*Government legislation aims to boost entrepreneurs

*Ruling coalition at odds over steps to help startups

*Berlin still popular for startups, London ahead overall

Rising rents, less venture capital and a shortage of talent are taking the shine off Berlin as a hub for startups.

"The one single thing more difficult to find in Berlin than an apartment is a programmer," said Avitosh Sawhney, 36, who moved his tech startup Ynertia to the German capital from Paris in 2020 but found it did not offer the plentiful space, funding and workers that had once made the city so attractive.

The government has taken note, and is drawing up legislation to ensure the country and its capital stay attractive for entrepreneurs to help drive the economy of Europe's industrial powerhouse.

But Finance Minister Christian Lindner's proposals, which include tax allowances for shareholders in a bid to entice more startups, face headwinds from members of the ruling coalition. The Greens say the plans help the rich at the expense of those less well off.

Greens lawmaker Katharina Beck told Reuters that Lindner "cannot ask others to save and then propose millions in tax cuts himself if he wants to draw up a serious budget for a sustainable Germany."....

 *As noted last Sunday:
Pilkington: "Germany Is Deindustrializing..."
One of the reasons we keep pitching French startups: someone has to create jobs, and new companies (not small, new) create more than their share on a GDP basis....