With a startup ecosystem valued at $4.5 billion, the capital of Bavaria is now becoming increasingly attractive for entrepreneurs wishing to improve people’s lives – from healthcare to smart city to ethical finance.
With startups in the city raising over 430 million euros in 2018, Munich has matured into a national hotspot for innovation. The Bavarian capital is now attracting a pool of high-skilled entrepreneurs looking to grow their disruptive business ideas, benefiting from high standards of living in the meantime. The city is not only the most significant tech-hub in Germany but was also named the most livable city in the world by the magazine ‘Monocle’, in July 2018.
Its GovTech scene is booming with entrepreneurs focusing on verticals such as smart cities, IoT, FinTech and HealthTech. The eHealth industry in particular has major potential to grow with 19,000 people employed by 350 eHealth companies, generating an annual turnover of 4.1 million euros.
This is only possible thanks to the substantial financial backing offered by VCs and Angel investors. After Berlin, Munich hosts the largest number of VC funds in Germany, including Earlybird Ventures, Speedinvest, Target Partners, and investors focusing on social entrepreneurship like Ananda, Bonventure and Fase.
This thriving innovation ecosystem is also supported by co-working spaces like Social Impact Lab, Impact Hub Munich, Mana Coworking and the government-funded Werk1 and BayStartUP that bring the community together and promote a cooperative and open mindset. The emergence of scale-up projects like the Digital Health Accelerator, Allianz X incubator and Startup Creator enable growth support to these businesses.
Munich is home to prominent universities and research institutions, creating a high-skilled pool of talent, key to the spin-off of innovative ideas. The Technical University of Munich has an entrepreneurship centre with services for startups as does the affiliated UnternehmerTUM. The Ludwig Maximilian University of Munich (LMU) Entrepreneurship Centre and the Centre for Digital Technology and Management (CDTM) also have a huge impact on the success of the startup ecosystem. Google announced a long-term partnership with the Technical University of Munich (TUM), including a 1 million euros grant to develop artificial intelligence, machine learning projects, and robotics.
The booming GovTech scene is further supported by government initiatives like the creation of Munich Startups – a virtual startup portal created by the City of Munich, the Chamber of Commerce and Industry for Munich and Upper Bavaria and the four entrepreneurship centers of the Munich universities within the framework of the Entrepreneurship Strategy Munich. Other projects like the Social Entrepreneurship Akademie provide support to social entrepreneurship projects and work to broaden the network of organisations that anchor social entrepreneurship within society.
“Munich’s impact startup scene is coming into its own. People are starting to realize that we don’t have that much time to fix the problems in the world, and you can do well by doing good.”Co-founder of Social Entrepreneurship Akademie, Andy Goldstein.
We selected ten young businesses transforming the public sector in Munich, check it out!
Top 10 GovTech Startups
FlixBus – a “combination of tech-startup, e-commerce-platform and transportation company”, the eco-friendly online platform offers long distance bus rides at low prices through an online booking service
ParkHere – a spin-off of the TUM that has developed a self-powered parking sensor. They have estimated that 30% of road traffic is due to drivers blindly driving down streets hoping for an open parking spot: a problem that their solution aims to fix.
IDNow– one of the leading providers for identity verification in Europe, they are building a mobile facial recognition platform for authenticating transactions.
Convaise – Part of PUBLIC’s GovStart accelerator programme, Convaise is a chatbot that helps local administrations cut out forms and data entry, saving time and money.
Hawa Dawa– tackle the problem of unlimited clean air for cities, businesses and citizens through data on air pollution that provides useful insights.
Etherisc – an ethical InsurTech startup that builds decentralized insurance in order to make insurance accessible and affordable for everyone.
Personiq – an identity management framework that allows companies to verify the digital identity of their customers in compliance with GDPR and e-privacy.
Definiens – Provides image analysis and data mining solutions for quantitative digital pathology in the healthcare industries.
Teleclinic – a communication platform that enables simple and secure communication between doctors and patients all over Germany.
This is part of a series selecting the most exciting tech startups from all over Europe. Every week, we cover new countries – check out other European cities here.