Berlin is Germany’s startup capital, with 468 startups founded here in 2023, one-fifth of the country’s total. An international market with residents from over 186 different nationalities and 49% of all startup employees being non-German citizens, Berlin has one of the most diverse workforces in the world.

Financial reforms aimed at helping the tech industry in Germany were introduced in late 2023. Reforms on employee stock ownership plans (ESOP) include tax deferral on employees’ stock options until the point of sale. A widened threshold for companies that can take advantage of German ESOP plans allows firms with up to 1,000 employees and a maximum of $108.7 million of annual revenue to distribute shares to staff.

The Growth Fund Germany, a $1.76 billion fund of funds to invest in German VCs, launched in 2023. The DeepTech & Climate Funds initiative also launched in 2023, allocating $1.76 billion to growth-stage companies in the two sub-sectors. In late 2023, the German government reported that 45% of its $32.3 billion startup strategy had been implemented. The initiative features 10 points to strengthen the country’s position as a startup hub, including improving the availability of venture capital, tackling a shortage of skilled workers, and removing bureaucratic hurdles.

Solar power systems developer Enpal has raised $2.4 billion in funding over 14 rounds and Ecommerce startup Flink Food has raised $1.2 billion in funding over four rounds. Annual tech conference hub.berlin brings together local and international innovators each summer and Venture Capital World Summit was held in Berlin in March 2024.