In a dynamic shift towards revitalizing its economy, Germany is being urged to embrace a more daring approach in fostering its startup ecosystem. Verena Pausder, the newly appointed head of the German Startups Association, is at the forefront of this movement, advocating for a cultural and strategic overhaul to bolster Germany as a prime destination for business innovation.
Pausder, a seasoned entrepreneur and one of Germany’s most influential angel investors, emphasizes the need for a cultural shift towards embracing risk. Her experience as a former edtech founder brings a fresh perspective to the role, stressing that in challenging economic times, entrepreneurs are vital for sparking new ventures and driving investment into proven businesses.
Germany’s economic landscape has faced scrutiny, with forecasts pointing towards a slowdown. The International Monetary Fund’s predictions for negative GDP growth in 2023 highlight the urgency for change. Pausder believes that fostering entrepreneurship is key to reversing this trend, offering opportunities for the youth and revitalizing the economy.
Pausder’s strategic agenda focuses on enhancing university spinouts, increasing investment in deep tech and later-stage financing, simplifying immigration for tech talent, and fostering collaborations between startups and established companies. These priorities are underpinned by recent legislative progress, like the Future Financing Act, which aims to make Germany more business-friendly.
However, challenges remain, particularly in addressing the late-stage financing gap. Pausder calls for a collaborative effort involving policymakers, startups, and investors to unlock capital for deep tech ventures. This is crucial to prevent high-value companies from relocating to more supportive ecosystems.
There’s optimism in the air, though. Startups have grown from contributing 1% to Germany’s GDP in 2018 to 5% today, creating over 400,000 jobs. This growth signifies the increasing economic importance of the startup sector in Germany.
Pausder is also determined to decentralize the startup boom, extending focus beyond Berlin and Munich. She plans to engage regional hubs and leverage the potential of university towns like Karlsruhe, Darmstadt, and Heidelberg, known for their research expertise.
To guide these efforts, Pausder has assembled a diverse board of nine founders and investors, each representing different facets of the startup landscape, from deep tech to AI and late-stage investment. This board reflects a balanced mix of expertise, with prominent figures like Hélène Huby of The Exploration Company and Nicole Büttner of Merantix Momentum.
Amidst a budget crisis and political debates over migration policy, Pausder’s leadership comes at a critical time. She aims to shift the narrative from ‘Made in Germany’ to ‘Make it in Germany’, encouraging entrepreneurs to establish and scale their businesses domestically, transforming them into global market leaders.
In conclusion, Pausder’s vision for Germany’s startup ecosystem is ambitious yet attainable. By fostering a culture of risk-taking, enhancing legislative support, and encouraging regional participation, Germany can redefine itself as a leading hub for innovation and economic growth. The time for action is now, and the potential for transformation is immense.
