The results of the sixth Green Startup Monitor 2024 provide an encouraging testimony to the strength and potential of green startups in Germany. These innovative companies are cooperating more frequently with universities and research organisations, proving that economic growth and environmental sustainability do not have to be opposites, but can go hand in hand. Another pleasing feature of green startups is the higher proportion of female founders and women in management positions compared to the overall average.
Almost a third of all start-ups in Germany can be categorised as green. With their visionary ideas, they drive forward sustainable solutions. However, in view of the current challenges in the market and financing environment, the proportion is declining slightly. More than half of green start-ups are pursuing the goal of growing quickly and achieving a high market share. This combination of economic and ecological goals is crucial to effectively combat the climate crisis. Startups are accelerating the transformation of our economy in important sustainability fields such as the energy transition or the circular economy.
Green startups collaborate more frequently with universities and research organisations
More than half of green startups cooperate with universities and research institutions, compared to only 38% of startups overall. This collaboration demonstrates the importance of green startups as a bridge between academic research and practical application, transforming the latest research findings into sustainable business models.
Green startups are partners of industry
Green startups also collaborate with established companies at an above-average rate, which emphasises their importance as a driver of innovation and change for the entire economy. These partnerships not only promote the innovative capacity of the companies involved, but also strengthen the sustainability and future viability of Germany as a business location. It is worth noting that the proportion of green start-ups in cooperation projects with the established economy has increased compared to the previous year, in contrast to the opposite trend for start-ups overall.
More women at the helm of green start-ups
Green startups are characterised by a higher proportion of female founders (24% vs. 17%), which is also reflected in the management level of the companies. This means that green startups are important pioneers when it comes to diversity and are also better positioned when it comes to the all-important topic of talent.
Professionalisation of impact management evident
Clear key figures and their measurement are a decisive success factor for the green transformation. A positive development can be seen here: the proportion of green startups that can prove their sustainability impact with facts and figures has risen from 27 to 39 per cent compared to the previous year. This indicates more offers and clearer specifications in the area of impact management.
Prof Dr Helmut Schönenberger (Deputy Chairman of the Startup Association; Co-Founder & CEO UnternehmerTUM):
“Sustainability and climate neutrality can only be achieved if we succeed in massively reducing the consumption of resources and rethinking systems. This huge challenge offers immense business potential for both established companies and start-ups. Start-ups play an outstanding role as drivers of innovation and bridge builders between science and industry. However, in order to keep up with international competition, our greentech start-ups need better funding and financing conditions. The German government’s growth fund, which supports important areas of innovation such as AI and climate technology, is a positive contribution to Germany’s innovative strength. It is now crucial to attract more private sector investment, such as from institutional investors, for the companies of the future.”
Prof Dr Klaus Fichter (Founder and Director of the Borderstep Institute for Innovation and Sustainability, Professor of Innovation Management and Sustainability at the Carl von Ossietzky University of Oldenburg):
“More than half of green start-ups are striving for both rapid growth and a high market share, our study shows. This makes them transformation accelerators. Many of them also co-operate more frequently with universities and research than non-green start-ups. The knowledge generated from research with taxpayers’ money thus creates economic and ecological benefits for society in a particularly effective way. That is why we need better conditions for the commercialisation of research results in Germany.”
Alexander Bonde (Secretary General of the German Federal Environmental Foundation):
“A nature-friendly and sustainable economy must become the standard. Sustainability is a key factor if companies want to remain future-proof and competitive. The Green Startup Monitor makes it clear how important innovative and environmentally conscious business strategies are. They ensure resilience in competition. This is precisely why the DBU specifically supports startups and small and medium-sized enterprises that contribute to environmental protection in a solution-oriented manner.”
For more information and details on the Green Startup Monitor 2024 click here.
Green Startup Monitor
The Green Startup Monitor analyses the importance of German startups that contribute to the ecological goals of a green economy with their products and services. The GSM is a project of the Borderstep Institute and the Startup Association and was funded by the German Federal Environmental Foundation (DBU).
Startup Association
The Startup Association has almost 1,200 members and was founded in Berlin in September 2012. The association sees itself as the representative and voice of startups in Germany: it represents the interests, viewpoints and concerns of startup companies vis-à-vis legislation, administration and the public. It promotes innovative entrepreneurship and aims to promote the startup mentality in society. The association sees itself as a network for start-ups in Germany.
Borderstep Institute for Innovation and Sustainability
Borderstep is an independent, non-profit scientific organisation that researches the future and investigates what is to come (innovation) and what will remain (sustainability). The focus is on developing solutions to problems and strategies for sustainable economic activity.
