8 Reasons Why Munich Is The Perfect City For Startups
Munich - more than just beer gardens and Oktoberfest! The Bavarian capital is the city with the most startups in Germany in 2022, overtaking Berlin. With a lively startup scene, a flourishing economy and a unique lifestyle, Munich is undoubtedly proving to be THE startup city par excellence. But why exactly is that? Here are some reasons why Munich offers founders the perfect launch pad.
- Facts About Munich Startups
- Why Munich Is THE Startup City: 8 Good Reasons
- Six Munich Startups You Shouldn't Miss Out On
- Time To Say "Hello, Munich!"
Facts About Munich Startups
Munich is booming! Every year, lots of startups are founded - and they are extremely successful. According to a study, over 2,000 new startups were founded in Munich last year alone. This is a significant increase compared to the previous year.
The success rate of Munich's startups is also impressive. Many of them have managed to establish themselves as leaders in their industry in a short time and successfully expand internationally.
What is the reason for this? What are already successful Munich startups? And which are yet to become so?
Why Munich Is THE Startup City: 8 Good Reasons
1. The Economic Power Of Bavaria
Munich is the engine of the Bavarian economy. The stable economy of Bavaria compared to other German states and European countries is a decisive factor for the success of Munich's startups. Bavaria is considered one of the strongest economic regions in Europe and offers a solid basis for companies to grow and succeed. Bavaria has a very low unemployment rate of 3,3 % only, a high export rate and a broad-based industry.
Did you already know? Munich is home to many global players (e.g. BMW and Siemens) and well-known large companies (e.g. Munich Re and Bosch), which can prove to be ideal cooperation partners, customers, or even a source of inspiration for startups. In addition, there are numerous startup centers where people can exchange ideas and become active themselves.
2. The High Quality Of Life
Munich is one of the most livable cities in the world. The city on the Isar River has a diverse cultural offering, green oases and impressive architecture. In addition, Munich offers a high recreational value for all those who live and work in this region.
Thanks to its proximity to the mountains and surrounding countries such as Austria and Italy, Munich offers an inspiring and varied environment. This diversity of cultures can foster the creativity and innovations of startups and open up new perspectives. Potential employees really appreciate Munich's geographical location!
3. An Inspiring Startup Scene
In Munich, well-known startups give inspiring talks time and again in which they share their success stories. It is very common for other startup founders, investors and mentors to be present. Here you can network with like-minded people, exchange experiences and learn from other Munich startups. The Munich Startup Festival, for example, is a yearly highlight for anyone who wants to be part of the thriving startup scene in Munich.
4. Easy Access To Talented Professionals
Munich is a magnet for highly qualified professionals from all over the world. The city offers a first-class educational infrastructure and research institutes which is the nurturing ground for talented employees. Munich is also home to two of the best universities in the world - Ludwig-Maximilians-Universität (LMU) and Technische Universität München (TUM). These renowned universities attract talent from all over the world and offer a first-class range of courses.
For startups, access to these top-class universities means a clear advantage. On the one hand, startups have the opportunity to benefit from the innovative research projects conducted at these universities. Good to know: LMU and TUM and other Munich-based universities themselves offer programs for upcoming startups, especially for alumni from their house, e.g. "LMU Career Talk", "Co-Innovation Lab Hochschule München, or "UnternehmerTUM". They also host events where startups can get to know students which of course can be the best potential future employees.
On the other hand, LMU and TUM enable close cooperation between students and companies. It is very common for startups to offer internships, student trainee positions or final theses in order to retain young talent at an early stage. Big plus: This allows them to benefit from young professionals' skills and ideas early on.
5. A Strong Infrastructure
U-Bahn, S-Bahn, tram, bus and regional trains - with a well-developed transport network, Munich offers the ideal infrastructure for startups. In addition, the city center is teeming with modern offices and co-working spaces with great views, beautiful backyards or roof terraces.
Munich Airport also offers perfect connections to the whole world, especially to America and Asia. With numerous direct flights to major international destinations, this airport gives startups easy access to markets outside of Germany and potential investors. This global accessibility is a huge advantage for startups looking to expand internationally quickly!
6. Funding And Investors
The City of Munich and the State of Bavaria offer a variety of funding programs and financial support opportunities for startups. But not only the Bavarian government offers various grants and subsidies to startups.
In addition, there are numerous investors and federations who support founders in developing their ideas and also give advice. For example, accelerator programs operate in Munich and Bavaria, offering startups mentorship, resources, and seed funding in exchange for equity. Another great contact point are startup incubators. They provide co-working spaces, guidance, and connections to potential customers and investors. These incubators foster a collaborative environment conducive to growth.
Classic investors or even angel investors also have settled in Munich. You can find them online or through your network. Talking about investors and ventures:
7. International Network
Munich is not only a hotspot for startups, but also for established businesses. Many large companies have a second headquarters here. For example, Google recognized the potential of Munich's international network early on and settled there back in 2006.
The international city has a huge network of companies, investors and entrepreneurs from all over the world. Munich attracts a large number of national and international investors who are willing to make investments in innovative startups. The high density of successful companies and the city's strong economic background make Munich an attractive location for investors.
8. Technology Centers And Research Institutions:
Munich has a large community of tech and science enthusiasts. There are plenty of technology centers and research institutions that support founders with their expertise and resources. This promotes the innovative strength and technological progress of startups. It also makes it much easier for startups to turn their ideas into a project or service.
5 Munich Startups You Shouldn't Miss Out On
Munich is full of potential and is THE portal for successful startups. If the 8 reasons haven't fully convinced you yet, we now introduce you to powerful and successful startups from Munich - and those that are sure to become so! These 5 Startups are the best practices on how Munich can be the kickstart to your business idea.
Westwing is a Munich-based startup that was founded in 2011. It stands out for its innovative concept and offers a wide selection of high-quality products for a stylish home online. The company has successfully expanded into the European market and is now active in several countries.
2. Air up:
air up is an up-and-coming Munich-based startup that has developed a unique drinking bottle. Their concept is as easy an genius: Instead of unhealthy additives, air up uses fragrance capsules to revolutionize the drinking experience. The bottle is environmentally friendly and increases water consumption in a healthy and tasty way.
roadsurfer is for those who want to experience the freedom of traveling on four wheels: Namely, the Munich-based startup specializes in renting high-quality and modern campers for independent travel. In the meantime, roadsurfer is active in several European countries - and very successfully at that.
MVST is a Munich-based software and design company. Creating and designing apps and websites is our great passion. We also support companies in implementing their ideas individually and bringing them successfully to market. Our team consists of experienced developers and designers who create customized products. Munich is where it all started and already two years ago we opened a second office in Barcelona (our Spanish hub!) to reap success on an international level as well!
Sustainable mobility? buycycle makes it possible! The startup from the heart of Munich offers a platform for buying and selling used bicycles. This reduces waste and at the same time significantly promotes environmental protection. Buying high-quality used bikes at an affordable price has never been easier. For buycycle, we at MVST took care of the development of the website, the app and the complete UI/UX design - see the result for yourself! Additionally, we invested in this great startup and are proud to be part of their journey.
Time To Say "Hello, Munich!"
Munich is not only known for its excellent Bavarian food, but also for its attractive framework conditions for startups. The city offers an inspiring scene for startups, a strong network, first-class infrastructure, as well as an inspiring and flexible environment. That enables startups to implement their ideas and successfully bring them to market.