Thursday, October 28, 2021
The dry spell is over
Startups can make money more easily again
Raising money is no longer as difficult for startups as it was last year. Many young companies have again taken in significantly more external capital in the past few months. On another topic, however, there is still a great gap between desire and reality.
It is easier for startups to find fresh capital again. According to a survey by the management consultancy PwC, young companies’ access to money has improved since last year. 36 percent of those surveyed named raising money as a stumbling block, seven percentage points less than in the previous year, said the Federal Association of German Startups with reference to the German Startup Monitor.
The association carried out the survey together with PricewaterhouseCoopers (PwC) and the University of Duisburg-Essen among more than 2000 startups. 38 percent of those surveyed are satisfied with access to capital and investments. In the previous year, only 30 percent were positive. The reason is that the pandemic-related uncertainties in financing have decreased, according to the study. Startups have taken in significantly more external capital in the past few months.
However, when it comes to venture capital, there is still a great gap between desire and reality. 20 percent of the young companies financed themselves this way, but twice as many would like to.
Startups would also like to make more use of strategic investors. “Unfortunately, investors and established companies are only slowly realizing that they can benefit greatly from strategic investments in and cooperation with innovative startups,” said Florian Nöll from PwC Germany.