Berlin Partner Half-Year Balance 2024
Despite the overall difficult situation, Berlin Partner looks back on a successful first half of 2024: Companies from all over the world continue to be drawn to Berlin. This is shown by the figures presented by the capital’s business development agency in its half-year report. The development of startups also reflects this positive trend, as the latest report by the consulting firm EY shows.
The companies supported by Berlin Partner plan to invest 650 million euros in Berlin in the first half of 2024 – an increase of 54 percent compared to the first half of 2023. Of these, 89 per cent of all investments are planned for existing customers, i.e. companies that are already based in Berlin; 11 per cent are planned for relocation projects. In the 208 projects, including 58 new settlements, that Berlin Partner 2024 successfully supported, 4011 new jobs were created. The number of successfully completed projects is thus 11 percent higher than in the same period last year - despite the ongoing crisis in the world and a noticeable wait-and-see attitude towards investments in many places. Nevertheless, the general economic situation in Germany is also having an impact on investment activity in the capital: Investment projects tend to be smaller and involve smaller volumes.
Franziska Giffey, Mayor and Senator for Economic Affairs, Energy and Public Enterprises: “58 new settlements and 150 companies expanding in Berlin send a clear message: Berlin is growing as a business location. Despite a difficult global situation and a wait-and-see attitude on the part of investors, the Berlin Partner team was able to increase its result from the previous year in the first six months of the year. This is a top achievement and also a confirmation of our joint work to promote Berlin as a place for investment and talent worldwide. Our position is clear: Investments and companies are welcome in Berlin. We work for a strong economy because this creates new jobs and prosperity for our city. To achieve this, we are driving forward the expansion of state-of-the-art infrastructure - from 5G and fibre optic networks to sustainable and high-performance energy supplies. And we are one of the most successful countries in the use of GRW funds for targeted economic development. The latest economic figures from our economists confirm our course: We expect economic growth of two percent this year. Berlin remains one of the driving forces of the German economy and is developing significantly better than the national average for the eleventh year in a row.”
Dr. Stefan Franzke, CEO of Berlin Partner: “The stable development of project numbers shows us that the capital continues to be attractive for companies and startups. The major innovation projects such as the new Gene and Cell Therapy Centre, Siemens Square and the House of Finance and Tech also show that investment in the future is continuing to be made. Despite the somewhat difficult environment, we are still doing well. Our advantage is: Berlin’s economy is based on several pillars and has the ability to utilise change as an opportunity.”
Research and development
The 69 investment projects in research and development by companies, universities and research institutions supported by Berlin Partner amounted to around 97 million euros in the first half of 2024, 39 percent lower than in the same period last year. Here, a trend can be seen towards tax-based research funding at the expense of funding programs such as the Federal Government’s Central Innovation Programme for SMEs (ZIM). Applying for the research allowance is less bureaucratic, but the financial scope is on average lower. This is therefore already reflected in the overall balance of R&D investments in the projects supported by Berlin Partner.
From Berlin to the world
58 new companies were attracted in the first half of 2024 thanks to Berlin Partner, which is almost 32 per cent more than in the same period in 2023. 37 new settlements, or almost 64 per cent, came from abroad, most of them from the UK (5), Turkey (5), Ukraine (3), the US (3) and France (3). This is possible because the business development experts travel the world to draw attention to the attractiveness of Berlin as a business location – at trade fairs, delegation trips and pitch events. Berlin entrepreneurs also benefit from this and can network worldwide: with international investors, potential customers, stakeholders and experts in the ecosystem as well as other delegations from around the world.
Under the motto “Berlin goes SXSW”, for example, nine Berlin companies were able to come into contact with networks from the US and the rest of the world on their trip to Austin, Texas. Viva Tech in Paris was mainly about networks from France and B2B matching for the 18 companies that travelled there. NextRise Seoul was aimed at South Korea. In the first half of 2024 alone, Berlin Partner travelled to trade fairs and delegations in Las Vegas, New York and San Francisco, Austin Cannes, Paris, Tokyo and Seoul. Many more internationalisation measures are planned by the end of the year.
Upward trend for startups in Berlin
The development of the Berlin startup scene is encouraging: According to the Startup Association, the number of new companies rose by 28 percent in the first half of 2024. The capital thus remains the hotspot of the startup scene in Germany and number one when it comes to volume and number of deals. With 123 financing rounds, startups from the capital accounted for a good one in three financing rounds (34 percent) across Germany. Berlin startups also received the most capital during this period, totalling almost 1.1 billion euros (EY Startup-Barometer Germany).
There is a clear trend that Fintech is playing an increasingly important role in Berlin. By far the best in comparison to other federal states, Berlin startups received a total of 283 million euros in venture capital in this area – corresponding to a market share of 88 percent.
Berlin as the German Fintech capital: This is also underlined by the founding of the House of Finance and Tech in April, in which Berlin Partner was involved. This creates a central location for the Fintech scene and a new centre for financial innovation in the capital.
Services by Berlin Partner
Free services offered by Berlin Partner are one of the keys to the capital’s success. The business development agency uses these services to provide support when companies want to relocate or grow at the location. This includes location advice when looking for commercial real estate, answers to funding and financing questions, support in the placement of skilled workers, support in technology transfer and innovation management, internationalisation services for new markets abroad and sustainability services. For the first half of 2024, Berlin Partner was able to advise companies with a total of 521 service packages.
Further information on Berlin Partner’s 2024 half-year report can be found at Berlin Partner: Press
