Germany has gained a reputation in recent times for being one of Europe's best countries in which to create a new business. With well-designed infrastructure and available funding opportunities, it's no surprise that startup companies within the country have thrived in recent years. So, let's look at which markets are proving fruitful to German startup businesses.
Over the last few years, the continued development and integration of artificial intelligence has ensured that numerous startup businesses in Germany have had the necessary foundations needed to thrive. Importantly, AI seeks to revolutionise the outlook of modern-day companies by adopting a more forward-thinking approach which utilises a computerised perspective to responsibilities that previously required human intelligence. Throughout 2019, heightened numbers of German-based companies were employing AI, with, in a report by Hannover Messe, Bitkom suggesting that 12 per cent of the country's organisations were already levering AI and machine learning.
Fundamentally, this new-found success can be somewhat attributed to the Western European country's undeniable focus on advancing the powers of computer systems, despite pre-existing fears that Germany were falling behind other international players in this particular field. Silicon Canals report that Luminovo, a Munich-based company that was founded three years ago back in 2017, has, since then, raised approximately £1.74 million in pre-seed financing rounds. Like many contemporary businesses utilising AI, Luminovo specialise in the electronics industry, with their latest development possessing the potential to save around 67 per cent of functional tests during chip development.
Aside from Luminovo, Ada Health are a prime example of just how fruitful an AI approach can be to new, emerging businesses. The now four-year-old company, which is based in Berlin, has, since entering the market, raised just over £55 million for the development of their AI-powered virtual health assistant. Moreover, the recent growth of the business has resulted in Ada being integrated with Apple Health to enhance AI's long-term capabilities.
Scope for Further Startup Success
As highlighted by the above markets, German has proved to be a fruitful spot for emerging businesses. Fundamentally, this is down to the country's well-designed ecosystem, which enables innovative companies to be established and built far more efficiently than in other locations. Moreover, Germany's geographical position in the centre of Europe also enhances business opportunities, which, in the future, is likely to see further numbers of startup organisations thrive across a wide array of different markets.