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Is Berlin the new home for tech start-up business? [video]

123 points| jimmyjim | 13 years ago |news.bbc.co.uk

168 comments

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[+] twfarland|13 years ago|reply
I'm an NZ expat who has lived in Berlin for the last few years. While Berlin is cool, let me present a caveat...

I've enjoyed the music scene and cheap rent, but have experienced major culture shock. It is a very intense place, full of contradiction, i.e. extremely open-minded in some areas and absurdly conservate in others. Berlin alternatively challenges and reaffirms one's various values.

Sometimes it seems like the 'adults' have left the city and left the 'kids' in charge. At other times, it feels impossible to breathe without violating some ponderous rule. Many are sucked into what is called a 'Berlinquency' - an existence in which one is spoilt by the hedonism, looseness, and condusiveness to self-obsession this place affords.

The tech scene is ok. There are a lot of clones. Some great meetups, though. It all seems to be on the up. Watch this space. And visit for a month before deciding to move here.

[+] k-mcgrady|13 years ago|reply
Any examples of what is 'absurdly conservative'?
[+] DanI-S|13 years ago|reply
To be fair, that would also be a near-perfect expat description of California.
[+] jfaucett|13 years ago|reply
I'm a young developer living in Germany. Here's my perspective. Berlin is cheap, affordable, has an international culture (I'm an emmigrant) and pretty much something to offer to everyone, so the city itself just has a good attraction for young people.

I don't know why the startup scene has started booming here but just type in "web start-up" at indeed (http://www.indeed.de/Jobs?q=web+start-up&l=berlin) and you'll get 275 results. Plus the UK has cracked down on emmigration laws and Germany has opened them up, at least for engineers, etc. b/c of the "Fachkräftemangel" i.e. the fact that the Germans lack skilled laborers. So whereas before for Europeans and especially Eastern europeans the UK was #1 its now changing b/c Germany is closer and easier. Also Germany seems more open to Europeans period, the UK with Cameron is doing all it can to shun the rest of Europe. The only problem I see, is that you still need to know German to get around ( which no one studies in school), which for instance is why my brother hasn't come.

EDIT: I guess I exaggerated with the "no one studies in school" bit. My point is that english is the only language we are all pounded into learning regardless of whether or not we have an interest in languages or a talent for them, so we can at least function at some level with english. German, however, is not the lingua franca I think we can all agree on that. I'm quadlingual (if that's a word), but not all talented developers like languages as well and unfortunately whatever the germans say, you still need to know german if you want to assimilate in germany, get an apartment, go shopping, and live life.

[+] maayank|13 years ago|reply
I'd just like to add my experiences in Germany[1] as a techie:

- Almost no wifi. Coming from an area (outside of Germany) with abundant wifi at Cafes that came as a real shock to me.

- As the parent said, you can't rely on just English for the day to day life. For example, I had to resort to a translator for getting a cellular account and cellular internet going. Even at O2, T-Mobile and Vodafone (global brand names) there were no representatives with enough English proficiency to tell me what the different packages included. That was for regular (non prepaid) accounts.

For a prepaid sim card the situation was a little bit better (seller could understand English but not help me with cellular internet configuration, could explain it later to a German, so it wasn't because of lack of technical knowledge) but the automated phone service (that you need to use for selecting plans, add credit, etc.) was German only.

- The cellular reception at cities is good, but the cellular (and cellular internet) reception at the more rural areas (even 30 minutes away from the big cities) proved very sketchy to me.

Those are the problems that surprised me. There are definitely advantages (good public transport inside big cities, relatively cheap living on the east), but I have nothing to add to other posters on that front.

EDIT: another thing that surprised me is that internet tethering is disabled (with no other option) on prepaid sims and costs extra (if at all possible) for regular accounts, at least in all the venues I checked. Again, if you come from a country/carrier where it is like that you won't be surprised, but I was. Especially as I've known Germany as "the place pioneering in unlocked phones".

IMPORTANT EDIT2 about salaries: while cheaper, if you come to work as a local employee the salary as a programer might be lower. Be sure to check at http://www.payscale.com/research/DE/Country=Germany/Salary (my very anecdotal experience is that this website is relatively accurate) Take that into account as well when comparing living costs.

[1] The longest time I was there consecutively was 1 month, but the points still stand

[+] hobin|13 years ago|reply
"which no one studies in school"

In the Netherlands, German is compulsory in high school at the HAVO and VWO levels. Regrettably, I've pretty much forgotten all of it. That being said, the Dutch people are already half German.

[+] iconfinder|13 years ago|reply
"which no one studies in school"

In Denmark we can select German classes in both elementary and high school.

[+] notJim|13 years ago|reply
What "m/f" or "m/w" mean in these job postings?
[+] MrKurtHaeusler|13 years ago|reply
I am a foreigner who has been working as a developer or manager in the software sector in Germany for around 10 years. For a couple of years I have been trying to move towards self-employment, with some ups and downs, but I am making progress on a project together with my wife. Last year I had the chance to switch jobs and move elsewhere so I naturally targeted Berlin. I would like to keep working in a high-paying job while funding the startup that I work on in my free time. I noticed a few things:

There are a quite a few startup jobs, but they are low end, low paying. Many pay even less than what I started on 10 years ago. They are looking for those starting their first job I think. I get the feeling Berlin startups get a lot less funding that other startups. Even the non-startup jobs that require more experience seem to pay a lot less, and even with the slightly cheaper rent than other cities, I couldn't find any attractive options. The official work experience I have on my CV is more enterprisy stuff like .NET and lots of stuff startups care less about like Scrum, Kanban, management in general and agile software development. I do have experience with things like Ruby, Python and JavaScript, but even startup employers were only interested in what was on my CV.

Not complaining or anything, just trying to help get a feel on what I found while looking there last year.

I found a good job near Frankfurt, and who knows, maybe I will end up in Berlin later, but I feel I might not need to. Frankfurt has a startup scene (and a rich financial sector). So does Cologne where I used to live.

[+] NicoleSimon|13 years ago|reply
"The official work experience I have on my CV is more enterprisy stuff"

That already is your point. You are coming from an enterprise thinking and payment structure - Berlin is everything but Enterprise.

With your kind of payment expectations, they will simply expect you to step up the game, and that probably is at least CTO if not co founder. If you want to be your specialized dev, you need to be extra good to work around this area and _understand_ what startups are about.

Also, judging by your nickname here, your name still sounds German. If you are from A / CH by definition (and if not proven otherwise on your CV and through experiences) you are not automatically startup material. Don't get me wrong: it is just about different skillset and mentality and if you cannot provide proof that you are not tainted by that obstacle, you will have an even harder time getting a job in that environment.

[+] nirvana|13 years ago|reply
I think you're bringing up good points, which I would summarize this way:

The berlin startup scene is great for recent graduates as an employee, but if you're more experienced, then you want to be a founder.

[+] webjunkie|13 years ago|reply
Home for start-up business? Yes. For tech start-ups? I don't think so. I have yet to meet one engineer-driven tech start-up from Berlin. Most founders I met and know are some business guys with oh-so-clever ideas looking for just the right CTO guy to make their plan reality. And most German developers I know also never thought about working for a start-up. They happily flock to every large German company you may know. The previous start-up I worked for had more Spanish developers than German ones.
[+] notJim|13 years ago|reply
Have you met or spoken to the Soundcloud guys? I met a bunch of their engineers here in NYC a few months ago, and they were very cool to hang out with. Seemed like a pretty cool company to me.

Edit: they could be an outlier, of course.

[+] JVIDEL|13 years ago|reply
Same here in Argentina, the startup community is almost engineer-free (almost, there are exceptions) but yeah it's kinda difficult to find engineers because most here don't want to work at a startup that might last less than a year, so they go to big and established companies instead.
[+] pimeys|13 years ago|reply
In our company, SponsorPay, we have a strong developer culture. The whole IT team is rock solid.
[+] wondering|13 years ago|reply
On the 'fake it,till you make it' path,Berlin seems to be right in the 'fake it' part.You guys write about low costs of living,however there are cheaper places in Eastern Europe with better tech talent availability overall.You mention the nightlife and a couple of the clubs are indeed world class,but I'd doubt it that you go there more than 5 times a year.The internet in Germany is borderline third world quality,in Bulgaria and Romania you get some of the fastest internet in the world for a fraction of the price you'd pay in Germany.The women are better than in the UK,but far from the best looking in the world.

What I'm trying to say with this point is,I don't really see the advantage of being in Berlin in the early stages of your business too,when you're just a 3 people shop,busting your asses all day to move things forward

Having written all that,I loved Berlin during my few months stay.

[+] DividesByZero|13 years ago|reply
I'm an engineer who visited Berlin earlier this year and loved the city - it's like my home town of Melbourne, Australia which I love, but just MORE of it.

I already had the itch to leave my 9-5 and go somewhere for an adventure, so when I got home I set about working out what I'd need to do to head over there and how much capital I'd need for about 6-months self sustained living in Berlin (came out to about $15,000AUD, thanks to the current strong AUD).

I found out one of my close (engineer) friends was also looking to leave his job and do something interesting and exciting, so I've convinced him to come with me too. Succeed or fail, it really seems like we could be part of something exciting in Berlin! Any advice on dos and don't would be appreciated.

[+] kellysutton|13 years ago|reply
I've been back and forth from Berlin for a little while now. My company's home base is in NYC, but I sometimes work out of Berlin.

Even this year while I was there (Feb. - May), the startup scene is exploding. I liken it to the satisfaction of knowing of a great band before everyone else: there's no doubt that Berlin will be muttered in the same breath as the Valley, NYC and London. It's only a matter of time.

The German culture can be a bit harsh to outsiders, but the Berlin startup scene more than makes up for that. The folks there are very kind and always willing to entertain a good conversation.

[+] graup|13 years ago|reply
I'm from Berlin, so I naturally enjoy the kind of hype that's being created since one or two years ago. However, I'd like to stress what someone in the video said: It's just budding and really not yet comparable to New York or London. There are quite a couple of cool start-ups here now, but still few with innovative breakthrough technology and also few large investors. But I see it coming, too.

I guess this will also become a self-fulfilling prophecy. For ten years people have been telling how cool Berlin is and a lot creative people were attracted. Now everyone's telling about the new tech start-up scene and that will attract even more talented people - hopefully also large investors.

Interesting times ahead!

[+] paulnelligan|13 years ago|reply
Berlin is a FANTASTIC city to bootstrap your project ...

reasons: 1. cheap cost of living, 2. availability of relatively well paid contract work, 3. A very supportive startup / creative community who are willing to share info and resources, 4. A very smart and creative demographic, 5. wonderful bars, clubs, and restaurants, 6. German people are actually a decent bunch :)

disadvantages: 1. over-strict regulations in dealing with Banking and Regulatory bodies (whatever you do, do NOT sign up for a postbank a/c), 2. Less than ideal weather.

Overall a win I think, which is why I continue to call Berlin my home.

[+] wickedchicken|13 years ago|reply
> wonderful bars, clubs

They don't close. They. Do. Not. Close. As a nocturnal developer I could go out to a club, get back to my hostel at 2, write code for 2 hours and then go out again. Bliss.

[+] spitfire|13 years ago|reply
So if someone wanted to relocate to Berlin to start a company, or to expand a team into europe, how would they go about that?

Where do people want to live? Where to locate offices? Where do you find good talent? What are the legal steps to do so? Any pitfalls to avoid? Others should feel free to jump on this.

[+] KilianSchramm|13 years ago|reply
Berlin is ramping up quickly. We get applications from all around the world. This is great and was much different just 12 Month ago. The hockey stick kicks in, now!

One comment on English: It is much easier than most non-english speaking cities and most international talent can manage the daily tasks within weeks.

check out foundfair.de and contact us in case you need help getting settled.

[+] andreasklinger|13 years ago|reply
What's the international position on this? I am living/working in the UK startup scene and it seems to me Berlin could become europe early stage garage very soon. Personally i believe London might be still the place to be after P/M Fit (the place to be in europe…)

What's the US take on this ? Do people actually care outside of the german speaking areas and maybe Uk?

[+] bpyne|13 years ago|reply
I'm a US citizen. My take is that if I was still single and not a parent, I would be in Berlin immediately. In some ways, it sounds better than Silicon Valley or New York. Transportation around SV doesn't sound like it's based on public transportation and housing prices are crazy. New York has great public transportation, especially with the addition of water taxies on the East River, but housing is out of control.

Learning German, if you're a native English speaker, is easy. Simple sentences in German can often sound like an oddly accented English. German is highly consistent, i.e. not a lot of exceptions to grammatical rules. You just have to get used to word order being different in some instances, e.g. verbs can appear at the end of sentence, and case endings. (Case endings are no big deal. Getting them wrong doesn't prevent the person listening from understanding you. Getting them right is the difference between a great speaker and a good one.) My experience in Germany around 1989 was that native Germans were more than happy to switch to English when I was stumped about how to say something in German. Learning the German language should not be a barrier.

For anyone thinking far enough ahead about being a parent, situating in Germany has other benefits. Germany has a better health care system and better public education. They are large costs/worries for any parent.

[+] danmaz74|13 years ago|reply
I don't know about an "international" position, but if I'll have to move from Italy for my startup (ie, to get funding) I would consider Berlin and London. Some time ago I would have only thought about London, but Berlin is much cheaper and I don't like UK's attitude towards Europe very much.
[+] vellum|13 years ago|reply
The US still Silicon Valley centric, with a growing interest in New York. But there's still a segment that likes to travel abroad. It comes up a lot in the "Where should I bootstrap my business" threads. Cheap rents, broadband access, English-speaking population, and a lot of young people make Berlin attractive.

If anyone's looking for a startup visa, I posted some information here: http://news.ycombinator.com/item?id=4170466

[+] pimeys|13 years ago|reply
Berlin is for me truly the only place I would live. Although it's not for everybody. And I would prefer not driving an expensive car at least in Neukölln or Kreuzberg areas. There are lots of other subcultures here.
[+] kori23|13 years ago|reply
It all sounds interesting and I've been meaning to drop my corporate job for some time now. So is there a Berlin startup news site (preferably in English) so I could get a feel what kind of startups are there?

EDIT: http://siliconallee.com/ seems to be the thing I was looing for, anything else?

[+] NicoleSimon|13 years ago|reply
You need to drop your corporate thinking first. I suggest you get into some projects to figure out if you are able to work in and with a startup. Note that I am saying that with a background of 15 years in corporate. ;)

Most of the startups are actually very busy doing stuff (as in they don't are yet at the point understanding what proper Communcation means sigh), but http://hascore.com/ has a good list of links.

I will be posting an overview posting asap with additional links.

[+] kayoone|13 years ago|reply
Main reasons for Berlin are its young and creative culture, affordable prices (rents, food etc) and overall great quality of live. The city itself is not the prettiest though, but it has its charme :)

Ive been there a few times at pitch/startups events and always liked the locations and overall vibe.

[+] adambyrtek|13 years ago|reply
The modern architecture in Berlin is really astounding. The city also has a lot of parks and green areas, which make it a pleasant place to live in. Not to mention perfect public transportation.
[+] alexro|13 years ago|reply
In the UK there is no consent among the investors where the action should go. I was quite surprised to learn than basically every credible accelerator has it's own view of where my start-up should be based.

Oxygen - Birmingham

Ignite100 - New Castle

Seedcamp - London

I get their desire to improve local culture but hey this is just ridiculous to ask me to settle somewhere because you gave me some money. Also, start-ups thrive in a tech-savvy areas only.

This all adds to the problem and Berlin has all the odds to become the answer.

[+] sim0n|13 years ago|reply
Almost all accelerators do this. YC strongly encourages you to live in the Valley.
[+] yannski|13 years ago|reply
You should take a look at HackFWD http://hackfwd.com/

For them it doesn't matter where you are in Europe. However, their recruiting mechanism is referrer based.

[+] pmoehring|13 years ago|reply
I work at Seedcamp.

We don't force anyone to move their startup to London. We do suggest the new teams spend some time with us here, as it's valuable to them to be part of what is going on here - a lot of the teams come from eastern Europe where there is much less of a tech (and investment) scene. Being in London for some time enables them to take part in that, make the right connections, and then move back, here, or on - often to the US.

[+] fauigerzigerk|13 years ago|reply
I believe incorporating in Germany is a lot more expensive than in the UK or Ireland though.
[+] hastur|13 years ago|reply
Yeah, but the UK, for all intents and purposes, is a 51st US state, in terms of legal and privacy concerns.

If you want to protect your startup's users, you should base your company in a country that won't extradite people on charges that aren't even applicable in said country. (O'Dwyer casus)

And where police won't sell you location and other assorted private data to the highest bidder. (NotW casus)

[+] 24pfilms|13 years ago|reply
Wow, timing is everything. I had booked my ticket 2 days ago for Berlin. I am finishing up my time at StartupChile and heading to Berlin after being convinced by many at SUP, that Berlin has many things happening. I needed a high quality affordable city, that was startup friendly and supported my photography addiction. Berlin hopefully will allow me the time to focus and finish my two iOS games.
[+] IanOzsvald|13 years ago|reply
I'm also finishing StartupChile and 24pfilms is flat-sharing with us in Buenos Aires right now. We're returning to London for a while but Berlin is still on our list (nowhere else in Europe is on our list).
[+] oceanician|13 years ago|reply
I would love to buy one of the 10,000 sq metre mills 5 mins taxi from Manchester's central Picadilly train station and turn it into startup accomodation. We're only 2 hours from London's Euston!! (So less than 3 hours from Shorditch)

Berlin however does seem to have the greatest multicultural vibe going for it for startups. It's pretty impressive, and I hope to sample it later in the year :)

[+] _ex_|13 years ago|reply
How is life for non white people? I'm from latin-america.
[+] lacosaes0|13 years ago|reply
It's really hard at least in Berlin.
[+] nirvana|13 years ago|reply
Berlin has the largest turkish population outside of instanbul. They have turkish restaurants everywhere and also grocery stores.

The population is ethnically very diverse, though of course, more middle eastern people than latin american ones.

Germans tend to be proper. So, drinking beer on the subway might be frowned upon, but nobody will comment. If you're obnoxious or noisy or otherwise being a jerk, germans will not be friendly to you. If you're polite, they don't care what you look like. If you've got a chip on your shoulder, you may mistake their coldness, which is really professionalism, for judgement, which it isn't.

[+] sbouafif|13 years ago|reply
Any city has its pros and cons. I am currently an intern in a tech start-up in Paris, the city has many co-working spaces / incubators. The start-up scene is bigger every day, and yes you won't speak french 70% of the day.

Anyway just saying the document seems to be a nice post card from Berlin but the same things are happening everywhere.

Last year it was Paris (Wired.com): http://www.youtube.com/watch?v=rt2bHumqDFs

[+] cageface|13 years ago|reply
I enjoyed the time I spent in Berlin last year and I've considered going back there but this seems imprudent with the Euro on the verge of implosion.
[+] mekwall|13 years ago|reply
I wouldn't worry too much about a crashing Euro. The exchange rates will most likely become more favourable for other currencies if that would happen. If you plan on staying there a longer period you might even see Germany reverting to Deutsche Mark, which should be even more favourable when exchanging back to your own currency once you leave considering that Germany itself has a very strong economy.
[+] hastur|13 years ago|reply
That's funny. ;)

Some Euro countries (Greece) might be on the verge of implosion, but there's no way the general currency could suffer any significant damage and Germany is the very reason for that.

The German economy is among the most powerful in the world and quite frankly you're more likely to experience an economic collapse in the US than in Germany. (Albeit that's pretty unlikely too, obviously. At least for now.)