Berlin Overtakes Paris

Only London Boasts a Higher Start-Up Rate

A record number of start-ups are launched across Europe, a large share of them in Berlin. Almost 16% (€1.6bn) of the total of €10.2bn invested in start-ups across Europe during the first half of 2018 went to Berlin, making the German capital the no. 2 in Europe behind London (€2.0bn) and ahead of Paris (€1.4bn). 

Most of the investment capital went to online retailers. The total number of venture rounds grew by 19 percent to almost 2,000. Despite Brexit-related uncertainties, start-ups in the UK managed to attract the lion’s share of European venture funding (€3.1bn), followed by Germany (€2.4bn), France, Sweden and Switzerland.
The willingness of venture capitalists to invest in new start-ups is seen as a marker by which to gauge their confidence both in the quality of the proposals and the region’s economic prospects. 

After all, investors stand to make huge profits by funding ideas that successfully disrupt established markets. 

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