German startups turn their backs on US investors: A new era?

German startups turn their backs on US investors: A new era?

More and more German startups are skeptical about US investments. This emerges from a current survey by the digital industry association Bitkom, which surveyed 152 tech startups. The results illustrate a trend: Views on the attractiveness of US investors are sharply divided. According to the survey, 70 percent of the founders surveyed consider the USA under Donald Trump's government to be a risk for the German economy. This has a noticeable impact on the willingness to work with American companies.

Almost 10 percent of the startups surveyed said they would no longer consider funding from the USA. In addition, 35 percent of founders show a hesitant attitude towards working with US startups or companies. In contrast, only 30 percent of startups still find US investors attractive. The search for support and capital has therefore changed significantly, tailored to the current political landscape and the associated risks.

Fear of dependency and desire for digital sovereignty

87 percent of the founders surveyed are calling for Germany’s digital sovereignty to be strengthened. This demand is based on the recognition that Germany has relied heavily on American technology for a long time. Skepticism towards the USA has also led to a preference for European donors. 13 percent of founders prefer donors from the EU due to the change in government.

The survey also shows that 31 percent of startups continue to explore the possibility of financing from the USA. Still, a significant portion, 11 percent, have become more cautious, while 7 percent are already ruling out U.S. investors entirely. Only 26 percent of those surveyed generally consider capital from the USA to be important.

Opportunities for the German market

Bitkom President Dr. Ralf Wintergerst also sees opportunities for founders in Germany and Europe in the skepticism towards US investments. He emphasizes the need to reduce bureaucratic hurdles and facilitate access to public contracts. In addition, more venture capital investments are required from institutional investors to fill the gap created by the declining attractiveness of American backers.

With these developments, the German startup sector is at a turning point. The discussion about digital sovereignty and independence from US technologies will continue to play a central role in the future as the investment landscape in Germany changes.