From Stasi to StartupsHow Berlin Evolved into a Creative Hub

Travis Todd, Silicon Allee @travisjtodd

1871

• During the Industrial Revolution Berlin became the capital of the German Reich under Kaiser Wilhelm.

• The economic boom created new businesses.

• Berlin became the empire’s political, economic, and scientific capital.

1898

• The Berlin Secession was an art association founded as an alternative to the conservative state-run Association of Berlin Artists. 

• Berlin’s first underground art movement

RESTARTWorld War One (1914-1918) leaves Berlin in ruins.

19201920s

• Greater Berlin Law of 1920 makes Berlin largest industrial city in Europe

• Human Rights & Personal Freedoms extended under Weimar Constitution

Arts & Culture were booming:

• Important artists met at Romanisches Café on Kurfürstendamm

• Josephine Baker introduced the new Charleston dance sensation in 1926

“The Golden 20s”

19201920s

Also technical innovations:

• In 1921 first Autobahn through the Grunewald forest

• In 1923 Tempelhof airport opened

• iIn 1926 the Funkturm (Radio Tower) was opened

“The Golden 20s”

RESTARTWorld War Two (1939-1945) leaves Berlin in ruins again.

1945-1990West Berlin:

• A cultural oasis in the middle of the GDR

• West Germans living in Berlin did not have to serve mandatory military service

• This led pacifists, non-conformists, contentious objectors, artists, and other liberal creative types to move to West Berlin

1945-1990West Berlin:

• Led to cultural movements like Punk Rock, Techno, Street Art

• US also sent Western radio & TV into GDR as “cultural propaganda”

East Berlin:

• Not to be outdone by the West, Communists funnel money into East Berlin theater, art scenes

• Creative types from East Germany flock to Berlin

RESTARTFall of Berlin Wall & Reunification (1989-1990)

Professional East Germans leave and creative Berliners are left with an blank canvas and empty playground

“Berlin is a startup itself.”

You may hear people say this:

This is disingenuous.

Berlin has always been a center for creatives,

subversives, innovators and free-thinkers.

“Berlin is a startup an entrepreneur.”

Berlin keeps failing, getting knocked down, creatively

pivoting and reinventing itself. Berlin is not a startup,

it’s an entrepreneur.

The Three Waves of Berlin Startups

The First Wave of Berlin Startups 2007-2010

a.k.a Attack of the Clones

Exits:

The First Wave of Berlin Startups 2007-2010

a.k.a Attack of the Clones

• Take US business models and roll them out in Germany.

• Not about creativity or product, just about making money from Germans

• Actually started in 1999 with Rocket Internet selling an eBay clone back to eBay (I only moved to Berlin in 2007, so only have first-hand knowledge from then)

• Seen with much disdain from new creative entrepreneurs moving to the city.

• But, good companies got acquired, creating new Angel investors

The Second Wave of Berlin Startups 2010-2013

a.k.a Drink Kool-Aid, Build Crazy Shit

Exits:

The Second Wave of Berlin Startups 2010-2013

a.k.a Drink Kool-Aid, Build Crazy Shit

• Influenced by the new Silicon Valley bubble a critical mass of

crazy entrepreneurs fight back against clones

• Many mobile-first companies learn that was a stupid idea (mine

included)

• Earlybird if first big VC firm to uproot and move to Berlin

• US & World starts taking notice; German companies are

acquired by International companies

The Third Wave of Berlin Startups 2013-2015

a.k.a Let’s Get Real

Exits:

The Third Wave of Berlin Startups 2013-2015

a.k.a Let’s Get Real

• Berlin starts to find the middle ground between crazy ideas and

real businesses, building an identity

• Berlin finds they’re getting good at food, fashion and advertising

• Repeat founders rebound and startup again

• More exits and a couple big IPOs

• More to come. Still evolving.

What’s Berlin’s Secret Sauce?

(Besides curry-ketchup)

• Is it really just the cheap rent? Yes, that’s a big part of it.

• High quality of life: Greenest capital city in Europe. Cool Parties.

• Top tech universities. A creative history.

• International. Direct flights to everywhere important

• Importantly, it’s NOT Silicon Valley. Valley people want to get

out of an incestuous ecosystem.

• CAUTION: A cushy lifestyle leads to less hustle. Berlin doesn’t

have enough competition or pressure to force success.

Thanks!Check out our new podcast:

soundcloud.com/hipsterandhack