BERLIN, July 10 (Xinhua) -- Germany registered 1,384 new startups in the first six months of 2024, marking a 15-percent increase compared to the second half of last year, the German Startup Association reported on Wednesday.
Following a sharp decline in mid-2022, registrations for these companies show a positive trend in the first half (H1) of this year, indicating that "momentum in the German startup ecosystem is clearly picking up again," the association said in a statement.
The country's capital, Berlin, along with the southern city of Munich, remained the most popular locations for newly registered startups, accounting for a quarter of the total. Other research-oriented cities also experienced a surge in new registrations.
"The significant increase shows that the entrepreneurial spirit in Germany is strong. The boom in the software sector is particularly encouraging, as it provides important impetus for digitalization," said Helmut Schoenenberger, deputy chairman of the association. According to the report, startups registered in the software sector accounted for almost one fifth in H1.
Due to talent shortages, German startups are actively seeking to hire more staff to fulfill their growth plans, as noted by the digital association Bitkom last week. The average startup currently has only 15 employees, down from 20 two years ago.
"Despite the challenges, this year will show signs of slight growth for startups in Germany," stated Ralf Wintergerst, president of Germany's digital association Bitkom. He highlighted that despite the overall economic downturn, the startup ecosystem has stabilized. ■