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Exploring Germany’s Startup Strategy With Digital Commissioner Anna Christmann

Startuprad.io
Startuprad.io
Published in
16 min readMar 23, 2023

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Executive Summary

Germany has adopted a startup strategy for the first time. One should pay attention if Europe’s largest economy makes such a step. The ten bn € Future Fund and others are part of the program, which channels billions in investments to startups in Europe and especially Germany. Therefore, this episode has a special guest, the Commissioner for Startups and Digital Economy for Germany, Dr. Anna Christmann, a Bundestag (the German federal parliament ) member (MdB). We touch on some of the ten points of the strategy and their criticism. The money comes from the ten bn € startup program (aka Future Fund) we covered with her predecessor in June 2021 (YouTube: https://youtu.be/kZxoEUa_6Uk) during the Merkel government. We also brush the topics of the German Deep Tech and Climate Fund, worth one bn €, and the European Tech Champion Initiative, a fund of funds worth four bn €, and how they fit into the programs.

“We see startups are key for transforming the [German] economy …”
Anna Christmann, Digital Commissioner Germany

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“Startups have the drive to really make change happen in the German economy.”
Anna Christmann, Digital Commissioner Germany

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“The ten bn € Future Fund is also part of the program and will last until 2030.”
Anna Christmann, Digital Commissioner Germany

The Video Interview is set to go live on Thursday, March 23rd, 2023

“The one bn € Deep Tech and Climate Fund is targeted for startups that need longer to develop their product than normal startups.”
Anna Christmann, Digital Commissioner Germany

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“We also invest one bn € in the European Champions Initiative.”
Anna Christmann, Digital Commissioner Germany

The Audio Interview

You can subscribe to our podcasts here.

The Commissioner for Startups and Digital Economy

Our special guest is the Commissioner for Startups and Digital Economy for Germany, Dr. Anna Christmann, a Bundestag (the German federal parliament) member (https://annachristmann.de/). This video follows her predecessor’s interview from June 2021, where we explored how Germany will spend ten bn € in the newly setup startup program (YouTube: https://youtu.be/kZxoEUa_6Uk). She is a Green Party (Die Grünen) member, one of the three parties forming Germany’s coalition government under Chancellor Olaf Scholz.

“We want to motivate more people to become [Business Angels] with the new INVEST program.”
Anna Christmann, Digital Commissioner Germany

The Startup Strategy

In broad terms, the strategy has 10 points:

  1. Strengthen financing for startups
  2. Help startups to attract talent, including through improved employee ownership opportunities.
  3. Develop a spirit of entrepreneurship and facilitate the setting up new digital businesses.
  4. Strengthen female entrepreneurs and support diversity in startups
  5. Facilitate startup spin-offs from science and universities
  6. Improve the policy environment for startups that serve the common good
  7. Mobilise startup competencies for public contracts
  8. Make it easier for startups to access data
  9. Strengthen regulatory sandboxes and facilitate access to them for startups
  10. Put the focus on startups

Here is the press release in English to learn more: https://www.bmwk.de/Redaktion/EN/Pressemitteilungen/2022/07/20220726-startup-roadmap-ready-federal-cabinet-adopts-first-comprehensive-startup-strategy.html.

To dive even deeper into the topic, here is the complete strategy with 34 pages in English as PFD downloadable: https://www.bmwk.de/Redaktion/EN/Publikationen/Wirtschaft/2022-startup-strategy-of-the-federal-government.html :

Ten Billion Euro Future Fund

We already covered the ten bn € startup program (aka Future Fund) with the predecessor of Mrs. Christmann in June 2021. This fund is the source of money to be invested in different initiatives, some mentioned in the interview and shortly covered below (DTCF and ETCI). You can learn more in this interview here on YouTube:

Deep Tech and Climate Fund (DTCF)

The one bn € deep tech and climate fund is newly set up as part of the government program. You can learn more here https://dtcf.de/

European Tech Champions Initiative (ETCI)

Germany also invests one bn € in the European Tech Champions Initiative https://buff.ly/3Z7NrEc. Five EU Member States launched the European Tech Champions Initiative (ETCI), a Fund of Funds that will channel much-needed late-stage growth capital to promising European innovators. At the time of the recording, four bn € have been committed to the initiative.

Tune in to our Internet Radio Station here:

Further Readings / Additional Resources

Feedback

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Interviewer

This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Startuprad.io. Reach out to him:

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Topics Discussed in this Interview

In this interview, we are talking about

#Innovation #startup #startups #startupradio #entrepreneurship #entrepreneur #business #motivation #success #entrepreneurship #mindset #goals #entrepreneurlife #lifestyle #businessowner #believe #positivevibes #branding #innovation #techstartups #germany #startupinvesting #startupnews #startupcompany #germany #policy #futurefund #deeptech #climatetech #DTCF #europe #tech #initiative #ETCI #startuppolicy #policy #transformation #digital

Automated Transcript

[0:00] Startuprad.io

[0:09] Your podcast and YouTube blog covering the German startup scene.

[0:14] With News interviews and Live Events.
Hello and welcome everybody this is Joe from startup rate dot IO today I have.
Anna christmann here with me she is the commissioner for startups and digital economy in Germany she’s also a member of the German Parliament and she has been working on Germany’s startup strategy welcome hi everyone I’m happy to be here totally our pleasure.
We have been talking a little bit up front and I already told you I like that there is a startup strategy and that there is Investments but you didn’t.
Increase on the 10 billion startuprad.io din the password link the interview down here.
In the show notes but basically my understanding is that the federal government that is what you’re speaking for now has a start-up strategy with 10 points that have been published by the way we linked the English document down here in the show notes as well can you walk us a little bit through what you guys are trying to do with that.

[1:33] Yeah indeed M we have for the first time a comprehensive startup strategy in Germany and that is something that was very important for us to be very fast and having such a strategy and because we see startups as key for the transformation of the economy we see that straps often and Fields of sustainability that they work on projects and products that are very important for climate protection and as they have the drive to really make change happen in the economy so that is a reason why it especially maybe as we are now Elsa from the green party parrot is in the Coalition as this is a really important point for us to be.
Tattoo have really a good surrounding for startups in Germany so that is why we have this strategy and we have I think we developed a quite fast and we it’s an actual innocence and summer 2022 now.
And that was a very important step and it wasn’t important to be fast because now we really want to put all the single project of the strategy really into action in this election. So we want to be fast.
And so maybe just very short two main points as you mentioned we have 10 different fields where we want to proceed.

[2:55] And is a this one is strengthening financing for startups and that is a major point and you mentioned the 10 billion future fund and that we have in Germany and it’s a fact that’s it last 10 20 30 so it’s in the program already that it’s for several years so it wasn’t.
For us to to put extra money in it that’s really now be precise what kind of funds we want to.
Implemented Within These 10 billions because it’s a umbrella program if you want to say so and then we have different funds that in the 10 billion future fund and for example one Newfound free just.
I’m released is a deep Tech and climate fund this is new and it’s 1 billion I’m really focused on startups that are into deep Tech or climate Tech that maybe develop products that take their time because it’s a technology that is not that fast that you can put your homepage online after half a year and then you have your company running and but that will take time and this focus on deep Tech is something we really want to support now there’s a future fund and we will I have another very important thing is the European Focus was European Tech Champion initiative.

[4:22] Where we put 1 billion in the European context together with France and other countries we now have zero fund of funds of.

[4:30] Four billion and almost 4 billion of the European level that also will help to really have a strong.
Went a capital Market in Europe so that is one of our major Focus to use releases future fund.

[4:45] Push for strong Venture Capital Market in Europe because we see that is very important on a global scale to make Europe to be seen on a global scale that is really an attractive Market to fund your company here and then also to get the financing you need so that’s one of the major points.
And I can go through the others but maybe if you have any questions.

[5:10] Exactly I really like the idea of improving funding because when I talked to very young entrepreneurs doesn’t necessarily meaning young in terms of age but young in terms of their journey to become an odd Corner very early stage startups doesn’t matter the age of the entrepreneur the main complaint is funding funding funding and they used to be a very good.
M program called invests who shows meaning when you do in a very early stage startup and investment you get some of the money back from the government but that with stopped and I’ve seen quite a lot of complaints on my timeline in LinkedIn from seasoned business angels because it appears they are not eligible for this funding anymore right.

[6:00] No it’s a we had to change the invest program and maybe just to be clear the invest program is focusing on the business angels so really.
People who want to invest their personal money and to accompany and as that is something we watch from the public side giving extra money on it.
And if you ever act as a business Angel so this is really for seed funding for for small amount of money and invest is a very successful program indeed and we are happy that has helped a lot to also push this business angel.
Ecosystem and Germany and but now we had just this like change that we really want to focus with the invest program on Virgin business angels sorry we want to motivate more people to go this way and to be brave and West and new companies and young companies and help them to grow and we had results from evaluating this program that said it’s more important to really try to get new people into the ecosystem of business angels.
And then supporting people who are already very successful business angels all work.

[7:18] The whole way of storms of future so it’s the focus is now on Virgin angels and not so much.
On a business angels that are already in the market for a while random time and I can understand that it’s for example maybe they would have loved to be supported still but of course from a public site it’s important that we have pushed for the whole ecosystem and not just for the people who are already in the system.

[7:46] You also want to make it easier for startups to win Callens and the employee stock option plans are a point of pain there they did the main issue is Tech Sation and as always text citation in Germany is a very difficult topic and guys you know what I always say don’t mess with Finance mm but basically right now it can get frequently text.
I’m dry as it called that means it is taxed before he get the cash out there was already an attempt to fix this but judging from the feedback of the startups and the startup Association that didn’t work out yet.
Yeah but we have a clear plan to change this is part of the strategy and pistol is not as a minister of finance is working on it right now and we are like waiting every day and for the new laws and will change the rules for these programs and then we’re clear that will clarify that it’s not like today anymore that after 12 years you will have to pay taxes and no matter what or if you changed as you employ as many when you change the.

[9:04] Company and you’re not a man anymore an employer and an employee at the company where you have the options as that was also a point of time where you had to pay taxes.
But we will change this so that you can also change the company and you will have to pay taxes only if there is an accident if there is an event that also gives you money where you can pay the taxes from and so that is definitely something we want to change we see it as an important project and the government is working on this specific law right now.

[9:39] Making founding easier is also an interesting topic for me because in Germany when you set up a legal entity something like alt PLC equivalent here I’m you have to see notary it takes a little bit of time after you go through the whole process you get a lot of physical letters and.
Actually before I got from the real business registry the hundred string is the commercial registry before I got a letter from them I got letters from scammers asking me to pay money when I first set up my legal entities there.

[10:18] Given away the scammers they always be there and how you going to make it.
Year to found a company I’ve heard once you should be able to do it digitally within a week.

[10:31] Is that still the goal we want to be even a better we aim at 24 hours.
So and I think that is important.

[10:42] Words here is at One Stop Shop that is something we have as a goal that you really have one landing page.
M as the start I’m always a Founder when you find everything you need and of course where you can do everything that is needed online and digital and that is our goal and we are working on this right now and of course to put all the different ends together on One landing pages.
Takes a little bit of time because as you said there are different actors involved different Ministries.
And that is always what is most complicated and but we are really very clear with having the goal.
One One Stop Shop One landing page everything digital and hopefully was in 24 hours and we are not there yet but we really want to see that we have a fast progress on this and implemented within the.
And next year hopefully.

[11:41] With I would just put two points together improving diversity especially female Founders plus improving the conditions for social startups and what do we looking here what do you want to do there.

[11:55] Yes he has told us it’s one of my very strong priorities because I really think it’s not acceptable that you will we have.
80% male Founders and only twenty percent female found us we need women in the startups we need them jointly staffed companies because they do differently also to men and especially in the fields of Education of Health and Social strata grabs their really the women are more ever represented in these fields and we need more digitization more startups also in these fields so to get there because implication is very important and also we see that diverse teams are more successful and most fields and more innovative so we want to push the women to go and into these fields and them to found their own companies and and that is why we have a new program exists women exist as a stipend for found us.
Mostly just come from universities and we want that now Implement Anna program such as only for women and they really support them too.

[13:03] In the early phase where they think about founding a company so very early to motivate them to to go the whole way as I’m very happy that we will have this new program exists women starting the summer and moves at this quite clear already and we also want to add support women on the investors site and we do this already M and institutions that are publicly owned and driven and there we put women and all the important positions where decisions over Investments are made because that is very important because men are funding men and women would decide differently in some ways and that is very important to have also the financing female startups and female Founders and this is also something we want to change so that it’s really a priority and I think we have already made some.
Important steps and maybe just one sentence was it it was the sole social stereotypes that is also one part of the strategy we will also have a social innovation strategy of the government that is important because they are we will even have more instruments to really support the social Innovation sector as a whole and that in our strategy we focus that we also want to develop new instruments that really.

[14:23] Support financing for these social strategies that have different needs than classical stack and Tech startups because they don’t.
Really have this.

[14:34] Aziz fast-growing track and that they need a different type of reliable funding maybe not that much but.
A little bit more conservative funding and if you want to say so so this is actually where we also did want to develop specific farming instruments.
For the Social and waiting.

[14:55] I had to smile when you talk about different needs for social startups I still I still think they need good developers that’s that’s number one easy I wish you good developer for developers could develop it’s working and last point I have here we didn’t cover all of them but down here in the show notes that will be all the points translated as well as a lot of the links for example exist women invests who shoes in and so on and so forth and what I also found very important and very interesting is make it easier for startups to be founded out of research my usual example is MP3 rules in wanted in Germany but never monetized here.

[15:38] Yes it is very important to really.
Use all the potentials that we have of the very strong universities we have in Germany and Germany is known as a place where we have a very good research on a high level.
Adam but we are not that good in bringing these high-level researchers to start their own companies and we want to be better in that but we had one very good example in Germany where this works already very well that is Munich.
And the so-called on tanima tool and as I said very that is like an ecosystem that has been developed in Munich that is really remarkable.
Where investors and startups.
And very good students come together and having a surrounding that it’s really easy to.
Bring your ideas as a student or as a researcher into this ecosystem and find people who want to finance you.

[16:40] People who help you doing all the regulations staff and so we see that as really a strong ecosystem and Munich is set up City number one now and not Berlin anymore as a we see as that works and that is why we want to.
Put this example and also and uses for other places in Germany so we’re going to do it.
Competition for entrepreneurship centers at universities so we want to see 5 to 10 and as a place in Germany where we can establish such a strong startup ecosystem and surrounding universities and I think that is very promising.

[17:23] And combined to that ass is also important to makes it easier to have the IP transferred from universities to strategies as it is something that can still be quite complicated in Germany and when you need to negotiate with your University what’s the license fees will be what kind of model is possible to have CIP transferred to the stomach and there we want to also try new ways and having academic institution as a shareholder for example in the startup and not very expensive license fees and that is something that is already.
Adam now in the test face was a control for school and oafish moment of etzion and our agency for Innovation as a t’elp right now to test these different models of Ip transfer to also a make it easier to start a spinner.

[18:21] 8 and the interview of Stephen Drew slurred CEO of oh Danny matoom that would published early December last year our link down here in the show notes so you can listen.
She says and unfortunately we are running a little bit out of time I’m very sorry and nonetheless.

[18:42] Miss christmann I really enjoyed the interview thank you very much it was a pleasure talking to you thanks a lot.

[18:50] Have a good day bye bye.
Bye That’s all folks find more news streams event.
Interviews at www.startrekphase2.de IO remember sharing is caring.

[19:10] Music.

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Startuprad.io
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