2023-09-07 16:12:56
Working in a start-up
Although seed rounds are declining, the number of startups is increasing.
(Foto: E+/Getty Images)
Berlin In Germany, more and more entrepreneurs are taking risks and founding start-ups exclusively with their own funds. With so-called bootstrapping, the founders are reacting to the reluctance of venture capitalists and the increasing difficulties in obtaining external funds. This is indicated by the figures from the data services Pitchbook and Dealroom, which are available to Handelsblatt.
The number of seed rounds, i.e. the very first rounds of financing with venture capitalists (VCs), fell by six percent in the first half of the year compared to the previous six months. Nevertheless, the number of start-ups rose by more than 16 percent in the same period.
Many investors welcome it when entrepreneurs finance the initial phase from their own resources. “These will be the most successful,” says Johannes von Borries from Munich-based venture capitalist UVC Partners, for example. These start-ups typically paid more attention to meeting customer needs first rather than investor needs. “Raising VC capital cannot be the main purpose of a start-up.”
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