Startups jobs in Berlin: an introduction · Venture capital is a catalyst for startup job growth....

Startups jobs in Berlin: an introduction

January 2020

January 2020 | https://startup-map.berlin

The data in this report is sourced from https://startup-map.berlin, the most complete and detailed picture of Berlin’s tech ecosystem.

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Startup Jobs in Berlin

Initiated by

Supported by

https://startup-map.berlin/dashboard

3,752

2,935

1,958

Public database Qualified startups Final dataset


This employment report includes 1,958 verified startups with employment data.


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Initial dataset

Captured by the ecosystem map, using

multiple sources including news-flow

processing, web scraping, analytics, user-

submitted contributions and manual

research.

EXCLUDING: Service Providers, non-tech, mature (founded before 1999), workspaces,

fully acquired organizations

EXCLUDING: Companies lacking employment data

Startups >10 years

Startups <10 years

Startups <10 years

Startups >10 years

Source: Dealroom.co

THE EARLY DAYS THE FORMATIVE YEARS GLOBAL EXPANSION DIVERSIFICATION

23Kpeople

29K people

22Kpeople

5Kpeople

1999-2005 2006-2010 2011-2015 2016-now Employees today


Source: Dealroom.co

How old is the Berlin startup ecosystem?


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211 companies today

581 companies today

1,542 companies today

1,136 companies today

13K19K

23K

22K

26K

29K

19K

20K

22K

4K

5K

5K

58K

70K78K

2017 2018 2019


Source: Dealroom.co

Berlin counts an estimated 78K startup jobs, of which 20K added in the last two years. Younger startups create by far the most existing and new jobs.

Number of Berlin startup jobs


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2016-now cohort ▶

2011-2015 cohort ▶

2006-2010 cohort ▶

1999-2005 cohort ▶

◀ +10K jobs

◀ +7K jobs

◀ +3K jobs

◀ +1K jobs

▪ 78K jobs from 2K startups

▪ Roughly 20% of jobs are in product development & software engineering

▪ Excluded are foreign startups with a Berlin office like eBay, Facebook, Google et cetera


The largest startup employer is Zalando (8% of total). The top-10 employers contribute 18% of jobs, followed by a long tail of startups.


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Number of employees

>1,000

Top 50: 33% of jobs

All 1,958 startups100% of jobs

78,000

Source: Dealroom.co

1,958 startups

1.S6: would be interesting to see cutoff #employees, or ranges (e.g. Blacklane to Adjust 300-500, Awin to Infarm 100-300 etc).

Top 10: 18% of jobs

500-1,000


Source: Dealroom.co

Compared with Amsterdam, Berlin startups employ twice as many people.

Cumulative number of employees


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0K

10K

20K

30K

40K

50K

60K

70K

80K

90K

0,001th 0,256th 0,511th 0,766th 1,021th 1,276th 1,531th 1,786th

Berlin1,958 companies78K employees

Amsterdam1,519 companies38K employees

2,000 companies


Source: Dealroom.co. VC backed startups only.

Startups in Berlin scale over 2x faster, than their Dutch counterparts, on average.


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50

100

150

200

250

1 2 3 4 5 6 7 8 9 10

Age in years

◀ Berlin startups

◀ Dutch startups

Why do Dutch startups scale slower on average?

The question deserves further research. But a

partial answer is that most Dutch startup

successes are older than 10 years: Booking,

Takeaway, Adyen, TomTom. Gitlab and Elastic

moved to the USA. The biggest recent employers

are Picnic, Temper and Cnova. Also, the VC

industry is much smaller in the Netherlands. And

the biggest successes (Booking, Tomtom, Adyen)

didn’t flow back into the Dutch ecosystem as the

company was acquired early by Priceline for less

than $150M.


Source: Dealroom.co. Valuations are computed using valuation estimates based on Venture Capital rounds.

Jobs are not nearly as concentrated as startup valuation. While the top 10 startups contribute 17% of jobs, they contribute 62% of total ecosystem value.

The top 10 most valuable startups contribute 62% of startup valuation


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The top 10 employers contribute 22% of employees

€ 29.5B

€ 9.4B

€ 8.7B Not meaningful € 47.6B

Top 10 Next 50 Next 500 Rest Total

13K

9K

21K

35K 78K

Top 10 Next 50 Next 500 Rest Total


While most companies are small, employees are distributed evenly across companies of different sizes.


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Companies by company size Employees by company size

Pawel: I do not get slide 10 - what is the point?

–

5%

10%

15%

20%

25%

30%

35%

40%

2 -

5

6 -

10

11 -

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21 -

25

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30

31 -

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05

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- 1

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- 1

25

126

- 1

30

131

- 1

35

136

- 1

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141

- 1

45

146

- 1

50

–

1%

2%

3%

4%

5%

6%

7%

2 -

5

6 -

10

11 -

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0

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100

150

200

250

300

350

400

450

500

0 2 4 6 8 10 12 14 16 18 20


Source: Dealroom.co

A relatively small group of startups achieve hyper-growth. But there is a large group lesser known startups creating lots of jobs (even more jobs in absolute sense).

Berlin companies by age and number of employees


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Age

Em

plo

ye

es

High profile companies

The belly of employment

250

240

230

220

210

200

190

180

170

160

150

140

130

120

110

100

90

80

70

60

50

40

30

20

10

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20


Source: Dealroom.co

The center of gravity in terms of jobs lies in companies up to 9 years old and up to 70 employees, which contains 50% of jobs.


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Number of employees

Age of company50% of jobs

1K

1K

1K

1K

2K

2K

3K

4K

4K

4K

5K

5K

5K

9K

13K

Finance and insurance service provider

Real Estate

Transportation and storage

Public administration, Defense, Social insurance

Hospitality

Manufacturing industry

Construction industry

Trade

Education

Other economic service

Health and social services

Freelancing, scientific and technical services

Production industry

Information and Communication

Startups

Service areas


Source: Dealroom.co

Startups are a significant contributor to job growth in Berlin.

Nr of new jobs created 2017-2018


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2%

2%

2%

2%

2%

3%

3%

3%

3%

3%

4%

4%

4%

5%

10%

21%

Manufacturing industry

Transportation and storage

Public administration, Defense, Social insurance

Trade

Hospitality

Health and social services

Other economic service

Finance and insurance service provider

Production industry

Service areas

Real Estate

Freelancing, scientific and technical services

Education

Construction industry

Information and Communication

Startups

% growth 2017-2018

38K

1,403

149 10939

31

30

8

-

100

200

300

400

500

600

700

800

900

1,000


Source: Dealroom.co

Venture capital is a catalyst for startup job growth.

Number of Berlin startups by funding received and average size


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No funding €1-5M €5-15M €15-25M €25-50M €50-250M €250M+

Av

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1,403 Berlin startups (70%) are not venture

backed.

1.S13: add candlestick style lines for min max or 25% 75% percentile?

$110m Series BDec 2019

$484m Series EMay 2019

$150m Series DOct 2018

$470m Series DJul 2019

$400m Series DNov 2019

$100m Series BJun 2019

€460m Growth EquityJan 2019

€100m Series DFeb 2019

Source: Dealroom.co

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Investment into German startups has reached record levels. Most of the proceeds will be used to build teams, creating new jobs.



€3.0B

€2.2B

€3.3B

€4.6B

€6.6B

2015 2016 2017 2018 2019

VC investment in German companies Selected funding rounds

Source: Dealroom.co

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German VC firms have been raising more capital than ever before, some of which will be invested into Berlin startups.

€900MSep 2019

$700MSep 2019

€306MJan 2018

€100M + $100MSep 2017 + Jun 2018

€175MJun 2019

€175MJul 2018

€120MJan 2019

$200MSep 2019

Selected new German funds



€1.3B

€0.9B

€1.7B

€1.4B

€2.4B

2015 2016 2017 2018 2019

New VC funds raised in Germany

January 2020 | https://startup-map.berlinPage / 17

A rapidly expanding network of interconnected ecosystems.


Live since July 2019

Coming soon!

Live since Oct 2019

Live since March 2018

Coming soon!

January 2020 | https://startup-map.berlinPage / 18

Ecosystem solutions already five major hubs in Germany.



Explore the underlying data in this report: startup-map.berlin/dashboard

3,700+ startups & scaleups

200+ Accelerators, workspaces

1,200+ funds & corporate investors

3,000+ Funding rounds & exits


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Startups jobs in Berlin: an introduction · Venture capital is a catalyst for startup job growth....

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