Green Startup Monitor 2018 - English Version - Borderstep Institut
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Green Startup Monitor 2018 English Version
Editors and Project Realization Borderstep Institute for Innovation and Sustainability (Borderstep Institut für Innovation und Nachhaltigkeit gGmbH) German Startups Association (Bundesverband Deutsche Startups e.V.) Authors Prof. Dr. Klaus Fichter Dr. Yasmin Olteanu Financial Support German Federal Environmental Foundation (Deutsche Bundesstiftung Umwelt) Design loveto GmbH, Agentur für Markenentwicklung und Design Picture Credits Cover Title © Adobe Stock/stockpics, p. 2 © BMU/Sascha Hilgers, p. 3 © Bundesregierung/Kugler, p. 5 © Unsplash/Lindsay Henwood, p. 12 © Adobe Stock/typomaniac, p. 13 © Adobe Stock/Worawut, p. 15 © Adobe Stock/AntonioDiaz, p. 16 © Adobe Stock/Kenishirotie, p. 22 © Rolf Schulten/Borderstep, p. 26 © Adobe Stock/Petair, p. 29 © Unsplash/rawpixel, p. 36 © Adobe Stock/Coloures-Pic, p. 37 © Unsplash/Hello I’m Nick, p. 39 © Adobe Stock/elbear, p. 43 © Adobe Stock/christianchan, p. 46 © Adobe Stock/tomertu, p. 50 © Adobe Stock/stockpics, p.59 © Adobe Stock/Paylessimages ISBN 978-3-9814819-3-8 Citation Please cite this publication as follows: Fichter, K. & Olteanu, Y. (2019). Green Startup Monitor 2018. Berlin: Borderstep Institute, German Startups Association Acknowledgement Our sincere thanks go to the German Federal Environmental Foundation (Deutsche Bundesstiftung Umwelt) for their financial support, to our partners and to all participants.
Contents
Greeting Federal Minister for the Environment Schulze
Greeting Federal Minister for Economic Affairs Altmaier
p. 2
p. 3
3 To what extent do green and
non-green startups differ? p. 26
Foreword by the initiators p. 4
StartGreen and the Green Startups Platform:
Support for green entrepreneurs p. 36
Ten key facts of the GSM 2018 p. 7
Zehn wichtige Fakten aus dem GSM 2018 p. 9
Green Deals: The top 10 of the years 2017 & 2018 p. 38
Green startups introduce themselves p. 10
1 Classification of green startups in the
German startup scene p. 12
4 What challenges do green startups face and what do
they expect from politics? p. 39
2 How relevant are green startups in the
German startup scene? p. 16
5 Recommendations for action for
policy and startup ecosystem p. 46
StartGreen Award: The national premium award for
green startups in Germany p. 22
6 Research design p. 50
Bibliography p. 54
Editors and authors p. 55
Contact p. 58
Green Startup Monitor 2018
Seite 3
Greeting by the
Federal Minister for the
Environment Schulze
© BMU/Sascha Hilgers
Dear Readers,
The best recipe for success concerning innova- achieve the solutions of the future with selec- fact makes me particularly optimistic about is encouraged. This is an issue not only within
tion is to combine ecological and social prog- tive optimizations. Here, we need sustainable the results of the Green Startup Monitor: The the Federal Government, but also on the EU
ress. “Green” products, processes and services startups: Around two-thirds of all “green” ba- fact that green startups are especially interest- level. After all, Europe and Germany are facing
are a prime example of this: They contribute sic innovations can be traced back to startup ed in internationalization – far more so than comprehensive structural change. If we want
to climate and environmental protection, and companies. Without the relevant green busi- non-green startups. to shape this change proactively, we must
they improve the living conditions of the peo- ness formations, for example, the renewable promote sustainable startups and sustainable
ple who use them. Therefore, the demand for energy sector in power generation would not The precondition for the success of sustain- innovations in a more directed manner.
environmental technologies will determine have developed in this way! And in other areas, able business ideas, however, is not only the
the markets of the future. The global Green- such as mobility or the plastic pollution in the innovative ability but also the right framework Only in this way can Germany remain a mod-
Tech market is already growing rapidly. Ro- oceans, the pressure for change is becoming conditions – a level playing field for sustain- ern, successful industrial country.
land Berger forecasts that the global market ever clearer. able innovations. The Green Startup Monitor
volume for environmental technology and re- provides important information on how we
source efficiency will increase from more than At the same time, global competition in the can help sustainable innovations achieve mar-
3,200 billion euros in 2016 to over 5,900 billion technology markets continues to increase. ket breakthroughs.
euros by 2025. Others have also recognized how attractive
this market is. Only with sustainable, funda- Financial market players should increasing-
If one wants to keep pace in these markets, mentally new solutions can German suppliers ly take sustainability aspects into account in Svenja Schulze
one has to rethink many business models continue to benefit from the growing global their decisions so that more investment in sus- Federal Minister for the Environment,
and value-added networks; we can no longer demand for GreenTech. Therefore, one certain tainable technologies, products and services Nature Conservation and Nuclear Safety
Greeting by the Federal Minister for the Environment Schulze Green Startup Monitor 2018
Page 2
Greeting by the
Federal Minister for
Economic Affairs Altmaier
© Federal Government/Kugler
Dear Readers,
Our social market economy thrives on the That is why Germany needs a new entrepre- economic knowledge and entrepreneurial tainability is a cross-cutting objective. Sec-
fact that there are people who are willing to neurial spirit and more people who can put thinking. In the spirit of a new startup culture ondly, through the High-Tech Startup Fund,
take their fate into their own hands and put their ideas, creativity and skills into practice in and a strengthened entrepreneurial spirit, we – which is largely financed by the Federal Min-
all their eggs in one basket in order to become their own startups. With the “GO!” startup of- will above all motivate more young, qualified istry of Economic Affairs and Energy – numer-
founders. They help to ensure that economic fensive launched by me, we are supporting the people to further develop their own ideas and ous cleantech startups, more than two-thirds
development moves ahead and that Germany step into self-employment. The decisive factor implement them entrepreneurially. On the po- of which are classified as “green” in the Green
retains its leading position in the world. is that we use customized instruments to pro- litical side, we need to reduce administrative Startup Monitor, have already received funding.
vide targeted support to courageous foun- hurdles and bureaucratic effort and speed up
The Green Startup Monitor, an unprecedented ders so that they can make a successful start digital processes. I would like to thank the authors very much for
concept, classifies more than a quarter of the in entrepreneurial independence. After all, the the Green Startup Monitor. I am sure that it will
innovative startups as “green”. With resource- startup scene is diverse and heterogeneous. Finally, the Federal Government's sustainabili- make its contribution to the further develop-
and environment-friendly products, innovative The Green Startup Monitor is, in any case, an ty strategy is a guiding principle for all funding ment of “green” startups in Germany.
processes and new business models, they pro- excellent instrument that can be used to shed programs of the Federal Ministry of Economic
vide impulses for a continuous renewal of our more light on the “green” startup scene in Ger- Affairs and Energy. Just to name two exam-
economy. At the same time, they prove that many and to make it more visible overall. ples: In the “EXIST – Existenzgründungen aus
ecology and entrepreneurial solutions do not der Wissenschaft” (“startups out of the science
have to be opposites; they can work together Furthermore, I am also keen on the social sector”) funding program, which we increased Peter Altmaier
to promote our country. and political appreciation of entrepreneur- significantly this year and which is co-financed Federal Minister for Economic Affairs
ial independence and the communication of by the European Social Fund, ecological sus- and Energy
Greeting by the Federal Minister for Economic Affairs Altmaier Green Startup Monitor 2018
Page 3
Foreword
by the Initiators
“Green Startups” are not only innovative and Green startups have also become a central
growth-oriented but also sustainable. With economic factor. As studies by the Borderstep
Prof. Dr. Klaus Fichter their products and services, they make an Institute show, they have created well over a
Founder and Director important contribution to meeting the ma- million new jobs in Germany over the past ten
Borderstep Institute for jor sustainability challenges of our time in an years. They are not only active in the energy
Innovation and Sustainability effective and entrepreneurial way, whether industry, the mobility sector and classic envi-
Image: Joerg Frank/Borderstep it is turning energy systems around, climate ronmental technology markets but can also
protection, avoiding plastics in the oceans or be found in all sectors: From agriculture to
implementing a sustainable circular-flow econ- the financial sector. In order to better connect
omy. However, the term “green” does not only the innovative founders in the cross-sectional
cover ecologically sustainable products and sector “Green Economy”, the German Start-
services but also a broad spectrum of diverse ups Association launched the "Green Startups
sustainable solutions to social challenges – for Platform" in 2017. With its diverse networking
example, in the areas of education, nutrition activities, it has since provided green startups
or health. The innovative solutions offered with greater visibility and a voice among politi-
by green startups thus cover the entire range cians, investors and established companies.
of the Sustainable Development Goals: The
Florian Nöll global goals of the United Nations to secure Green startups also play a key role in pro-
Chairman sustainable development that came into force moting structural change. While established
German Startups Association in 2016. companies generally have their strengths in
Foto: Bundesverband Deutsche Startups improvement innovations, it is startups that
Foreword by the Initiators Green Startup Monitor 2018
Page 4
introduce fundamental environmental innova- sustainable potential of green startups can be
tions to the market as pioneers. In the trans- better utilized.
formation bringing us towards a climate-neu-
tral economy, the innovative startup teams are In view of the economic and ecological impor-
the main drivers of change. As the results of tance of green startups, it is essential to have
the Green Startup Monitor (GSM) show, green a monitoring instrument available that makes
startups predominantly rely on digital busi- the share of this type of startup in the start-
ness models. In other words, they are making up scene, special characteristics and achieve-
particular use of the opportunities offered by ments and also specific challenges visible in
digitalization to implement new sustainable politics and startup promotion programs as
solutions. well as to investors and established compa-
nies. We are, therefore, pleased that the Green
The Green Startup Monitor also shows that Startup Monitor – published by the Borderstep
green startups have to struggle with partic- Institute for Innovation and Sustainability and
ularly high barriers in many markets and are the German Startups Association – provides
often not rewarded for their outstanding sus- us with a sound factual basis for the policy
tainability performance. In some cases, they debate on the respective economic and en-
are even disadvantaged in regard to startup vironmental aspects. We would like to thank
promotion programs. The GSM, therefore, the German Federal Environmental Founda-
makes suggestions on how this imbalance tion (DBU) for its financial support of the Green
can be remedied and how the economic and Startup Monitor.
Prof. Dr. Klaus Fichter Florian Nöll
Director, Borderstep Institute Chairman, German Startups Association
Foreword by the Initiators Green Startup Monitor 2018
Page 5
The Green
Startup Monitor Startups are younger than
10 years and
Demonstrating the importance
of green startups in the
German startup scene and as are (very) innovative
drivers of innovation towards
and/or
Characteristics
a Green Economy
of Green Startups
have (or plan with)
Goals Identifying specific
challenges and needs
of green startups
a significant employee/
turnover growth and
Recommending measures to improve contribute to the
the conditions and ecosystem of green environmental objectives
startups in Germany
of a Green Economy
The Green Startup Monitor – Goals, Characteristics, Key Facts Green Startup Monitor 2018
Page 6
10
Key Facts of the GSM 2018
Two out of three German 26% of German startups can Green startups are planning Green startups want both, Green startups assess their
startups strive to achieve a be considered green because with a similar revenue and to be financially successful innovativeness higher than
positive social or environ- their products, technologies employee growth as and to achieve a positive non-green startups.
mental impact. and/or services contribute to non-green startups. environmental and social
the environmental goals of a impact.
Green Economy.
Green startups have far The percentage of female Two out of three startups Green startups are more Particularly innovative and
fewer problems recruiting green founders is slightly in the sectors of energy likely to encounter growth-oriented green
IT professionals, despite the higher than that of non-green production, chemicals, challenges with attracting startups call for political
general shortage of startup founders (yet at 18% agriculture and mobility financing than non-green support for exchange with
specialized staff. still low). are green. startups. established companies.
The Green Startup Monitor – Goals, Characteristics, Key Facts Green Startup Monitor 2018
Page 7
Der Green
Startup Monitor Startups sind
jünger als
10 Jahre und
(DE) Aufzeigen der Bedeutung
grüner Startups im deutschen
Gründungsgeschehen und als
Innovationstreiber einer
Green Economy
(sehr) innovativ
und/oder Merkmale grüner Startups
haben ein
(geplantes)
Mitarbeiter-/
Ziele Identifikation von spezifischen
Herausforderungen und
Bedürfnissen grüner Startups
Umsatzwachstum
und
leisten einen
Beitrag zu den
ökologischen
Empfehlung von Maßnahmen Zielen einer
zur Verbesserung des Gründungs- Green Economy
und Marktumfelds grüner Startups
in Deutschland
Der Green Startup Monitor – Ziele, Merkmale, Fakten Green Startup Monitor 2018
Page 810 wichtige Fakten
aus dem GSM 2018
Zwei Drittel aller befragten 26 % aller Startups können Grüne Startups planen ein Grüne Startups wollen Grüne Startups schätzen ihre
Startups streben danach, als grün eingestuft werden, ähnliches Umsatz- und sowohl betriebswirtschaft- Innovativität höher ein als
eine positive gesellschaft- weil sie mit ihren Produkten, Mitarbeiterwachstum wie lich erfolgreich sein, als auch nicht-grüne Startups.
liche oder ökologische Technologien und/oder nicht-grüne Startups. eine positive ökologische
Wirkung zu erzielen. Dienstleistungen einen und gesellschaftliche
Beitrag zu den ökologischen Wirkung erzielen.
Zielen einer Green Economy
leisten.
Grüne Startups haben trotz Der Frauenanteil unter Zwei Drittel der Startups Grüne Startups sehen in der Besonders innovative und
des allgemeinen Fachkräfte- grünen Startup Gründern ist in den Bereichen Energie- Kapitalbeschaffung wachstumsorientierte grüne
mangels deutlich weniger etwas höher als bei nicht- erzeugung, chemische deutlich häufiger eine Startups wünschen sich von
Probleme, IT-Fachkräfte grünen Startups, mit 18 % Erzeugnisse, Landwirtschaft Herausforderung als der Politik Unterstützung
zu rekrutieren. jedoch trotzdem gering. und Mobilität können als nicht-grüne Startups. beim Austausch mit
grün eingestuft werden. etablierten Unternehmen.
Der Green Startup Monitor – Ziele, Merkmale, Fakten Green Startup Monitor 2018
Page 9Green startups introduce themselves
Thermondo Coolar
Image: pixoom-photographie.de Image: Coolar
Thermondo was founded in 2012 because we realized that the energy revolution could only work Coolar has developed an innovative, completely water-based cooling system that allows a refrig-
with tangible solutions. This includes increasing efficiency, expanding decentralized energy erator to be operated with heat from low-emission heat sources such as solar thermal systems,
supply and switching to environmentally friendly technology. district heating from cogeneration, or waste heat.
Today, we are the leading heating installer for one- and two-family homes and have already This allows Coolar to improve energy efficiency in industrialized countries while providing the
enabled more than 15,000 homeowners to heat with less CO2 emissions. We only use efficient most robust, reliable and sustainable solution for medical and vaccine cooling in regions without
heating technologies such as condensing boilers, solar thermal systems and domestic hot water a reliable power grid. The use of robust thermal energy storage solutions instead of short-lived
heat pumps. and environmentally harmful batteries guarantees longevity and reliability.
Our customers save heating costs and at the same time make an important contribution to the Combined with our technology, an average of 60% of CO2 emissions and 75% of operating costs
environment. With an efficient heater, they can reduce their CO2 emissions by up to 30%. in Germany could be saved compared to when using conventional refrigerators. In addition,
the system does not contain any climate-damaging refrigerants, which are currently the most
important single factor in global warming.
Green startups introduce themselves Green Startup Monitor 2018
Page 10Seedforward Ono
Image: Drießen Image: ONO
SeedForward is an agricultural innovation startup focused on developing solutions for cli- Delivery traffic is booming. Far more than 10 million parcels are transported daily in Germany.
mate-friendly and sustainable agriculture. Due to increasing regulatory restrictions on fertil- The trend is rising rapidly. This is already bringing cities, their infrastructures and traffic to the
izers, pesticides and seed treatments, many farmers have limited prevention and treatment absolute limit – not to mention the environment: 500,000 mostly diesel-powered delivery vehi-
options to achieve stable earnings. cles are trying to cope with the volume of deliveries in Europe; this results in over 6 million tons
of CO2 per day.
For this reason, the first marketable product which we developed is an organic seed treatment. It
is based on a unique composition of natural materials and has a positive effect on the resistance ONO is more than an alternative. The revolutionary eCargobike, a hybrid of electric bicycle and
and efficiency of plants as well as on the soil ecosystem. Although this is only part of the overall van, offers solutions: Whether they be for people and the environment, traffic and infrastructure,
solution, it allows farmers to stabilize their harvests and often reduce fertilizer use. or in terms of efficiency and profitability for logistics companies on the “last mile”.
Green startups introduce themselves Green Startup Monitor 2018
Page 111
Classification
of green startups
in the German
startup scene
Page 121.1
What is a green startup?
Startups are younger than 10 years, are (very) innovative and/or
have a (planned) significant employee/sales growth. “Green”
startups are characterized by the fact that their products,
technologies and/or services contribute to the ecological
goals of a Green Economy.
According to the latest estimates,
6,000
there are currently around
green startups
in Germany.
1. Classification of green startups in the German startup scene Green Startup Monitor 2018
Page 13“The sustainability megatrend has also
reached the business world, and entrepre-
neurs in particular are frequently personali-
ties who want to make a difference.”
Dr. Irina Tiemann
Business Innovation
EWE Aktiengesellschaft
“Startups” represent a subset of new business It can be assumed that around 23,700 startups
formations of greater economic significance1 were operating in Germany in the year 2018. 3 1
and are defined here on the basis of the char- Based on the results of this Green Startup Startups with greater economic significance include all le-
acteristics proposed by the German Startups Monitor, it can be assumed that around 6,000 gal entities and partnership companies. Incorporations of
Association.2 In this sense, “startups” can be of these startups can be classified as green. natural persons must meet specified criteria (commercial
characterized as high potentials because, register entry, craftman’s card or at least one employee) in
with their innovative products and business order to qualify (Statistisches Bundesamt, 2018, p. 545).
models, they have a special significance with 2
regard to economic impact factors such as the A detailed derivation of the startup term can be found in
creation of new jobs (Kollmann, Stöckmann, the German Startup Monitor 2018 (Kollmann, Hensellek,
Hensellek, & Kensbock, 2017, p. 16), on the one Jung, & Kleine-Stegemann, 2018).
hand, but also a special potential for ecolog- 3
ical aspects such as the reduction of green- For the derivation of the number of startups in Germany,
house gas emissions (Fichter & Clausen, 2013, see Chapter 6.
p. 275), on the other.
1. Classification of green startups in the German startup scene Green Startup Monitor 2018
Page 141.2
Why are green
startups particularly
important?
In order to achieve the sustainable develop- It demands the integration of sustainability as-
ment goals and solve key challenges such as pects into the strategic orientation of all start-
climate change, biodiversity loss and water ups and respective support programs with
scarcity, entrepreneurial approaches are in- the aim of accelerating the transformation
creasingly recognized as important by national towards sustainable economic development.
and international policies (United Nations, The climate-relevant potential of innovative
2015). In 2014, the European Commission pub- technology and knowledge-based startups is
lished the Green Action Plan for SMEs. The particularly highlighted (Bundesministerium
plan is designed to help startups and other für Bildung und Forschung, 2018). Also, the
companies take advantage of the business new energy research program of the Feder-
opportunities offered by the transition to a al Ministry for Economic Affairs and Energy
Green Economy (European Commission, 2014). (Bundesministerium für Wirtschaft und Ener-
Germany’s new High-Tech Strategy 2025 also gie, 2018, p. 19) emphasizes the importance
underscores the importance of the topic and of startups for energy system transformation
provides new impulses. and has created its own “Research Network
Startups” with the aim of integrating them into
energy research.
1. Classification of green startups in the German startup scene Green Startup Monitor 2018
Page 152
How relevant
are green startups
in the German
startup scene?
Green Startup Monitor 2018
Page 162.1
A quarter of German
startups can be
classified as green
A good quarter of the startups participating
in the German Startup Monitor can be classi-
“Green startups are
fied as green.4 The Green Startup Monitor thus
compares the responses of 295 green startups,
founded by 728 founders and with currently
still considered a niche
(according to their own account) 3,480 employ-
ees, with the responses of 863 startups that do
not contribute to a Green Economy.
development. A mistake!“
Dr. Matthias Wittstock,
The participating green startups are between
Wittstock Consulting
0 and 10 years old. On average they are quite
(Former Head of the Startup Department
young at 2.5 years. Three out of four (76%)
at the Federal Ministry for
were founded in 2015 and later. Every second
Economic Affairs and Energy)
green startup in the data set is in the “Start-
up Stage”, meaning it has developed a mar-
ket-ready offer and is recording its first sales 4
or users. The other half of the companies are For the demarcation between green and non-green start-
spread almost equally between the “Seed ups, as well as between this GSM 2018 and the Green Eco-
Stage” (no sales/no users yet) and the “Growth nomy Gründungsmonitor (GEMO), see Chapter 6.
Stage” (strong sales/user growth). Only three 1,158 startups in the data set responded to all three ques-
out of every hundred green startups are in a tions relevant for the classification and could, therefore,
later development phase. be included in the analysis.
2. How relevant are green startups in the German startup scene? Green Startup Monitor 2018
Page 17Self-assignment of startups to the Green Economy 2.2
based on responses of 1,348 startups Locations and
startup hotspots
Our products/services can be assigned to the "Green Economy" because they
purposefully contribute to environmental protection, climate protection and
resource conservation.
16% 17% 18% 20% 30% Measured in absolute terms, most green start-
ups can be found in the federal states of North
Rhine-Westphalia, Baden-Württemberg and
fully agree agree neutral disagree fully disagree
Berlin. 5 The German Startup Monitor bundles
various locations into five so-called “Start-
up Hotspots” (Kollmann, Hensellek, Jung, &
Kleine-Stegemann, 2018, p. 23) for an easier
Distribution green startups / non-green startups overview. As is the case for all startups, the
green startups hotspots are headed by Berlin
based on responses of 1,158 startups
(14%), followed by the Rhine-Ruhr metropol-
green startups non-green startups
itan region (10%), Stuttgart/Karlsruhe (7%),
Hamburg (6%) and Munich (5%).
26% In four federal states, green startups account
for over a third of all startups: Saxony, Bran-
denburg, Thuringia and Schleswig-Holstein. It
is noticeable here that although the new feder-
al states Saxony, Brandenburg and Thuringia
only host a small share of the absolute num- 5
ber of green startups in the data set, there is The figures on federal states and startup hotspots pre-
a clearly above-average trend towards green sented here reflect the distribution of green startups in the
startups in these states. Looking at startup data set. They therefore provide an interesting insight into
hotspots, the Stuttgart/Karlsruhe region leads the distribution of those green startups that have been
with the highest proportion of green startups invited to participate in the survey and have decided to
(27%), followed by Berlin (24%), the Rhine- do so. This distribution is a trend, and it is not possible to
74% Ruhr metropolitan region (23%), Hamburg
(23%) and Munich (21%).
draw conclusions about the exact distribution of all green
startups.
2. How relevant are green startups in the German startup scene? Green Startup Monitor 2018
Page 18Distribution of green startups across federal states Proportion of green startups among all startups in the
respective federal state
based on responses of 295 startups
based on responses of 879 non-green und 295 green startups
35%
3% Schleswig-Holstein
Schleswig-Holstein
23% 27%
6% 2% Hamburg
Mecklenburg-Vorpommern
Hamburg Mecklenburg-Vorpommern
5% 27%
Bremen
14% Bremen 24%
Berlin
9% Berlin
Lower Saxony 2% 26% 36%
Brandenburg Lower Saxony
29% Brandenburg
2%
Saxony-Anhalt 22% Saxony-Anhalt
16% 7% 38%
North Rhine-Westphalia
North Rhine-Westphalia
35%
2% Saxony
Thuringia Saxony
Thuringia
4% 25% 27%
2% Hesse Rhineland-Palatinate Hesse
Rhineland-Palatinate
1% 30%
Saarland
10%
Saarland 20%
Bavaria Bavaria
15% 28%
Baden-Württemberg Baden-Württemberg
2. How relevant are green startups in the German startup scene? Green Startup Monitor 2018
Page 192.3 Sector distribution and share of green startups per sector
Industries and based on responses of 855 non-green and 293 green startups
technology categories
Sector share of all Sector share of all
green startups green startups
Energy 79% 8% Industrial Goods 35% 3%
Electricity 75% 1% Security 33% 1%
Raw Materials 67% 1% Biology 33% 1%
Every fifth green startup is active in the in- cially growth-oriented startups, the share of
6
formation and communication technology green startups in the information and commu- Mobility 61% 4% Education 21% 3%
sector. This means they deal with intermedi- nication technology sector increases to 27%.
ate or end products or services “that enable Growth-oriented green startups do, therefore, Agriculture and Leisure and Sports 18% 2%
Rural Development 55% 2%
information search and processing as well as engage in this sector over proportionally.
communication between people electronically” (Online-)Gaming 18% 1%
Textile Industry 53% 5%
(Schnorr-Bäcker, 2016, p. 35). Thus, startups Within their respective sector categories,
from the information and communications green startups dominate in six. In the energy Consulting and Agency 15% 2%
Chemicals and
technology sector account for the majority of and electricity sectors, almost eight out of ten Pharmaceuticals 53% 3%
green startups. In comparison to the gener- startups can be classified as green. This is also Information and
Communication Technology 15% 19%
al startup scene, where it is one-third of the the case for seven out of ten startups in the Water, Waste and Recycling 50% 1%
startups that assign themselves to this sector raw materials sector and six out of ten in the
Human Resources 12% 2%
(Kollmann, Hensellek, et al., 2018, p. 25), the mobility sector. Tourism 47% 3%
share is, however, notably lower.
Banking and Finances 11% 1%
Green startups also make up the majority of Food and Nutrition 45% 9%
With great distance from the information and startups in agriculture, textiles, chemicals and
Medicine and Health 11% 3%
communication technology sector follow the pharmaceuticals, and even in the area of (on- Cars 42% 3%
food, energy and consumer goods sectors. The line) gaming, around 18% classify themselves
Media and Creative Industries 10% 1%
energy sector in particular, with a share of 8%, as green. Banking, finance and insurance Logistics 39% 3%
is of distinctive importance for green start- startups hardly ever focus on ecological sus-
Insurance 0% 0%
ups compared to the general startup scene in tainability. It remains to be seen whether, for Consumer Goods 37% 7%
Germany, in which only 3% assign themselves example, the European Commission's Sustain-
to it (Kollmann, Hensellek, et al., 2018, p. 25). able Finance Initiative will have an impact on Construction and Real Estate 37% 4%
When considering only the subgroup of espe- this in the future. % green startups within industry
2. How relevant are green startups in the German startup scene? Green Startup Monitor 2018
Page 20Regarding technology categories,7 the self-as- Share of green startups among all startups across technology categories
signment of startups shows that green start-
based on responses of 661 non-green and 250 green startups
ups dominate in four categories. In the areas
of EnergyTech, ChemTech and AgriTech, seven
out of ten startups are green. This also applies
to six out of ten Future Mobility startups. The EnergyTech 70% PropTech 20%
distribution across technology categories is
thus similar to the distribution within the in- ChemTech 68% LegalTech 17%
dustries described above and hence under-
lines the importance of green startups in tech- AgriTech 67% FinTech 15%
nical and industrial areas. The innovations of
these startups thus make a major contribution Future Mobility 62% SportTech 13%
to the ecological goals of a Green Economy.
TravelTech 35% InsurTech 11%
6
Demarcation based on the answer very important to the FoodTech 33% Cyber Security 11%
statement: Which corporate strategies are currently im-
portant for your startup? Rapid growth. BioTech 30% Digital Health 10%
7
EnergyTech: Innovative processes for energy generation, EdTech 21% MedTech 0%
ChemTech: Innovative chemical products, AgriTech:
Efficiency-enhancing processes in agriculture, Future Mo-
bility: Solutions for the mobility turnaround, Tra velTech:
Technical solutions in the travel industry, Food Tech: Tech-
nical solutions for production, supply chains and distribu-
tion channels in the food industry, BioTech: Application
“Startups in the two fields of energy and mobility
typically have the more scalable business models –
of technology to living organisms, EdTech: Efficiency-en-
hancing use of technology in education, PropTech: Digital
services and technologies in the real estate industry, Le-
galTech: Technical solutions for legal work processes, Fin-
tech: Technical financial innovations, SportTech: Technical
and, in individual cases, grow to the level of world
market leaders.”
solutions for sports, InsurTech: Use of modern technolo-
gies in the insurance industry, Cyber Security: Hardware
and software solutions to prevent unauthorized access
to information, Digital Health: Digital solutions for health Dr. Jörg Lefèvre
care, MedTech: Products, equipment and processes for the Head of Division
prevention, diagnosis and therapy of diseases. German Federal Environmental Foundation
2. How relevant are green startups in the German startup scene? Green Startup Monitor 2018
Page 21StartGreen Award
The national
premium award
for green startups
in Germany
www.start-green.net/award/
Page 22The StartGreen Award bolsters In 2018, the leading award for sustainable solu- All applications in the category “Startup”
up founders in the Green Econ- tions in Germany was presented for the fourth also had the opportunity to qualify for the The StartGreen Award 2018 was
time in a row. The focus was on linking green Cleantech Open Ideas Challenge in California.
omy. It supports innovative startups, companies, investors, funding insti- The international competition for cleantech
awarded in three categories.
tutions and political pioneers to promote a companies in 2019 takes place in San Francisco
startups and exemplary start- Green Economy. (USA). The three selected winners of the Ger-
up promotion programs in the man preselection were nominated for the fi-
The green startup community had the oppor- nal. In addition to having travel costs covered,
field of Green Economy and tunity to participate in a prior public voting to the teams won a coaching package and men-
sustainability and makes them determine who most deserved the award. In toring for the preparation of the competition
3
the final pitch in front of a jury of experts, the as well as intensive on-site support. This prize
more visible. Patron of the finalists competed for financial and non-finan- was made possible by the main partner RKW
Energy of the future
(startup concepts,
StartGreen Award 2018 was cial rewards worth more than 60,000 Euros. In Kompetenzzentrum. 1 startups & young
addition to a prize of 5,000 Euros per category, Startup Concepts
the German Minister for the the main partner, SDG Investments, offered This year saw the second time that pupil com- (not yet established)
companies from
0-15 years)
Environment, Svenja Schulze. to register all finalists in the award categories panies focusing on sustainable solutions were
“Startup” and “Energy of the Future” on the also honored (StartGreen@ School Award).
SDG Investments platform (equivalent to 5,000
Euros each). The StartGreen Award is an initiative of the
Borderstep Institute. The prize has been 2
awarded since 2015. Startups
(up to 5 years)
StartGreen Award Green Startup Monitor 2018
Page 23StartGreen Award
WINNER 2018
CATEGORY Startup Concept CATEGORY Startup CATEGORY Energy of the Future
ME Energy Nuventura Solmove
(Berlin) (Berlin) (Potsdam, Brandenburg)
Flexible, nationwide charging infrastructure for The world's first medium-voltage switchgear without Smart road surfaces for clean e-mobility
electric cars SF6 greenhouse gas
The founding team of SOLMOVE from Potsdam (Brandenburg)
The founders from Berlin want to turn electromobility into The startup from Berlin has developed the world’s first gas-in- develops smart roads. The SOLMOVE “solar carpet” is an inno-
something that’s accessible for everyone. To this end, they are sulated medium-voltage switchgear up to 36 kV. With it, the vative road surface that generates electricity, defrosts snow
developing fast-charging columns that can be set up anywhere, greenhouse gas SF6 can be replaced by air without sacrificing and generates data. In this way, clean energy can be generat-
without connection to the power grid or infrastructure require- the advantages of SF6 systems. SF6 is the strongest greenhouse ed without consuming land and used for electric mobility. A
ments. They function independently of car types and charging gas there is. The actual annual emissions of SF6 correspond to further advantage is that the modules can simply be glued onto
infrastructure. This is of particular interest to people in rural the annual CO2 emissions of about 100 million cars. Nuventura the existing surface and transferred to the recycling process for
regions, who were previously largely excluded from switching wants to render SF6 use unnecessary with its technology. solar systems after undergoing wear and tear.
to e-cars.
Images © Rolf Schulten/Borderstep
StartGreen Award Green Startup Monitor 2018
Page 24German Preselection for the Cleantech Open Ideas Challenge in California StartGreen@School Award
WINNER 2018 WINNER 2018
Paprfloor Nuventura Schmids Druck Studio
The company from Weil der Stadt (Baden-Württemberg) has de- The startup from Berlin has developed the world's first gas-in- Carlo-Schmid-Oberschule (Berlin)
veloped a floor covering made of recycled paper. Compared to sulated medium-voltage switchgear up to 36 kV. With it, the
classic trade fair floors, the paper floor reduces CO2 emissions greenhouse gas SF6 can be replaced by air without sacrificing Schmids Druck Studio prints on sustainable textiles. Through
by up to 10kg per m2. The use of paper also saves large amounts the advantages of SF6 systems. SF6 is the strongest greenhouse the digital printing process, multi-color prints can also be made
of hazardous waste that are typically generated by disposing of gas there is. The actual annual emissions of SF6 correspond to to orders in small quantities. In addition to textile printing,
the conventional floor. the annual CO2 emissions of about 100 million cars. Nuventura cups, thermo cups and mobile phone covers are also printed.
wants to render SF6 use unnecessary with its technology. All textiles are fairly produced and consist of organic cotton
and recycled yarns.
Manyfolds
With the software from this startup from Munich (Bavaria), 3D
furniture design becomes a 2D cut pattern. Mainly corrugated
and honeycomb board is used, so that the furniture is cheap,
requires only a fraction of the energy and material to produce
compared to conventional furniture and can be produced with
highly automated processes.
Images © Rolf Schulten/Borderstep
StartGreen Award Green Startup Monitor 2018
Page 253
To what extent
do green and
non-green
startups differ?
Green Startup Monitor 2018
Page 263.2. Three out of four green startups currently have When asked about the challenges of recruit-
employees who are not part of the founding ing employees, difficulties emerge primarily
Green startups find it team. On average, each of these green start- in the IT sector: Every second green startup
easier to find employees ups has created 13 jobs. reports that it is rather difficult to find person-
nel in the technical IT sector (55%). Two out
Three out of four (74%) of the hiring green of three green startups (66%) have difficulties
startups state that they employ between one filling positions in the field of applied IT. Com-
and nine people. Every fifth (22%) has between pared to non-green startups, however, these
ten and 49 employees. 4% of the hiring green difficulties are less pronounced. In addition,
startups even employ 50 employees or more. significantly more green than non-green start-
3.1
91%
Over the next twelve months, 91% of the green ups report that it is easy to find employees for
Growth of green startups (and 87% of non-green) startups plan to hire these areas. Green startups thus appear to be
new employees. On average, green and non- attractive employers for sought-after occupa-
on an equal footing with green startups are planning seven new hires. tional groups.
other growth companies of the green startups plan
to hire new employees in the
next twelve months
For the year 2018, more than half (54%) of IT Recruitment Challenges
the startups in the dataset reported having
based on responses of 645 non-green and 226 green startups,
generated sales or having expected to do so
resp. 707 non-green und 235 green startups
in 2018. Generally, green startups achieve the
same turnover as non-green startups and em-
ploy the same number of employees. Both the green startups
green and the non-green revenue-generating Applied IT: rather – very easy 18% non-green startups
startups are planning to double their turnover 11%
on average for 2018 compared to the previous
year.
Technical IT: rather – very easy 20%
14%
This planned growth is, however, seen as far Applied IT: rather – very difficult 66%
less of an important challenge (36% vs. 46%) 77%
by green startups. Consequently, two thirds of
the green startups see themselves in a good,
Technical IT: rather – very difficult 55%
59%
competitive market position with their innova-
tive products and services. 0 20 40 60 80
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 273.3
Green startups see Innovativeness
themselves as more based on responses of 838 non-green and 288 green startups
innovative green startups non-green startups
60
60%
Green startups see themselves as more inno-
56%
vative than non-green startups:8 Six out of ten
green startups see themselves as innovative,
14% as very innovative. This applies in partic-
ular to green startups in the start-up phase. 50
Here, about three quarters see themselves as
innovative or very innovative (vs. 64% of non-
green startups). Green startups are thus par-
ticularly frequently bringing new ideas to the 40
market.
In the very innovative subgroup,9 all startups
in the automotive, transport, chemical and
pharmaceutical, safety, food and nutrition and 30
28%
food sectors are green. The Greens among the
very innovative startups also dominate the
technology categories Future Mobility (89%),
ChemTech (75%) and Energy-Tech (63%).
20
20%
8 14%
Based on an index of responses to the four dimensions:
business model, technology, processes and products/ 10 9%
services
9 5% 6%
The very innovative index category describes startups that
have classified themselves as very innovative on average
0
0% 0% 0% 1%
in all four dimensions (business model, technology, pro-
not innovative not innovative rather not rather innovative innovative very innovative
cesses and products/services). at all innovative
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 28“In our experience, the green scene is very well balanced
with a high proportion of women. It is thus a logical
conclusion, that there is a comparably higher number
of women here who start a green company.”
Frank Ackermann
Cofounder
SDG Investments
3.4
More female founders
in green startups
Female founders are clearly underrepresent- Only about one out of ten green (as well as
Percentage of female startup founders ed in the German startup scene (Kollmann, non-green) startups is founded by a purely
Hensellek, et al., 2018; Trautwein, Fichter, female founding team – two out of three (64%
based on responses of 863 non-green and 295 green startups
& Bergset, 2018; Metzger, 2017). This differ- vs. 73%) by an exclusively male team. Com-
green startups non-green startups
ence is particularly noticeable in the area of pared to non-green startups, green start-
innovative and growth-oriented startups; ups are founded more than twice as often by
although the number of female founders has mixed-gender teams (26% vs. 11%).
risen slightly every year since 2014, (Koll-
18%
mann, Stöckmann, De Cruppe, Hensellek, &
Kleine-Stegemann, 2018, S. 15), it currently
only constitutes 15% of founders for all (green
and non-green) startups.10 Green startups are 10
14% founded more frequently by women than non- Total share of all indicated founders
green startups.+11 However, at 18%, this pro- 11
0 5 10 15 20 portion is nevertheless low. The meaning of the symbol “+” is explained in chapter 6.3.
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 29based on responses of 290 green startups
other
applied IT
stationary trade 10%
16%
3%
13%
other services
(analogous)
business model 10% technical IT
distribution
of green
startups 10%
online sales
technology development /
production (hardware)
18%
8%
3% 4% 6% other services (digital)
social network
online trading platform
sharing digital business models
analogous business models
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 303.5 Within the subgroup of particularly growth-ori- 3.6 Green startups not only actively address the
ented startups, however, fewer startups are ecological and social challenges of our time,
Green startups set up analogously than the above-described
Green startups see but they also see additional market opportu-
mainly pursue digital average: Here, only 20% of green startups are ecological challenges nities in them: More than eight out of ten green
analogous (vs. 15% of non-green startups). startups agree or fully agree with this state-
business models as entrepreneurial ment. With their innovative and sustainable
When considering only those startups with opportunity products and services, green startups are thus
more than ten employees, green startups pur- penetrating new markets. These are markets
sue business models of applied IT12 (18% vs. that have arisen, and will continue to arise, as
More than half of the monitored green startups 34%) or other digital services (9% vs. 17%) only a result of current environmental challenges
(56%) follow a digital business model. They half as often. Twice as frequently as non-green such as climate change, the loss of biological
therefore use “digital technology, the Internet startups, they are dedicated to (hardware) diversity and water scarcity.
and/or digitally collected data (...) to create technology development or production (23%
new offers and/or improve existing ones” (Le- vs. 11%); three times more frequently, they are
rch, Schnabel, Meyer, & Jäger, 2007, p. 18). Ev- dedicated to online sales (9% vs. 3%).
ery third green startup (34%) acts analogously,
e.g. in the production of material goods, prod-
ucts, the provision of non-digital services or
“Environmental or social challenges open up additional market opportunities.”
the operation of stationary trade.
based on responses of 764 non-green and 267 green startups
There is a clear difference to non-green start- 12 green startups non-green startups
ups, of which only one in five (20%) has an Development and improvement of computer-based
analogous business model. solutions for everyday life and science.
fully agree 44%
16%
56% agree
30%
40%
of the green startups operate
with a digital business model 84% neutral 13%
29%
of the green startups see market disagree 3%
opportunities in our environmental 18%
and social challenges.
fully disagree 1%
7%
0 10 20 30 40 50
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 313.7 More than two-thirds of all green and non- the other hand, is very important to only 4% growth-oriented green startups, this per-
green startups in the data set stated that of the surveyed green founders. Product de- centage increases to 86% (vs. 66%). For the
Same company goals and achieving a positive social or ecological impact velopment is a very important task for almost concrete (further) internationalization in the
tasks, but additional is important to them. Pursuing not only finan- half. Almost one third name organizational coming twelve months,13 almost all of the
cial profit but also social or environmental development, the strengthening of corporate green startups name the EU. Disproportion-
positive ecological impact added value is therefore an integral part of the culture and the motivation and promotion of ately often, they are planning an internation-
objectives of not only the green startups but of employees as currently very important man- alization into non-EU Europe, Asia, Africa and
two out of three of all startups. agement tasks. South America.
For a majority of the other corporate goals An exception is internationalization, which
and management tasks surveyed, there are green startups are particularly interested in.
no significant differences between green and A good half of the non-green startups consid- 13
non-green startups: Growth and profitability ers it as rather to very important, while this multiple choice
are very important goals for a quarter of them is the case for over two thirds of the green
respectively. The goal of a successful exit, on ones. When only looking at the particularly
“Achieving a positive social or ecological Corporate objective internationalization
impact is currently an important
based on responses of 855 non-green and 294 green startups
corporate goal”
based on responses of 1,158 startups
(863 non-green and 295 green) non-green green
startups startups
14% very important
very important 25% very important 23%
19% important
important 21% important 19%
20% rather important
rather important 22% rather important 26%
23% rather unimportant
rather unimportant 16% rather unimportant 15%
15% not important
not important 9% not important 10%
not important at all 6% 9% not important at all not important at all 7%
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 323.8 14
Same key performance
42%
Percentages of green startups that (fully) agree with the
For
indicators with the addition statements (multiple choice): (i) Sales growth is important
for us, (ii) profitability is important for us, (iii) Our position
of the green startups
of positive environmental relative to the competition is important for us
internationalization is impact 15
With a deviation of only one to two percentage points each.
important or very important
When asked about their key performance in- Key performance indicator:
Planned (further) internationalization dicators, two out of three of all participating Positive ecological and social impact
startups (62%) agree or fully agree with the is important for us
based on responses of 731 non-green and 245 green startups
statement Positive ecological and social impact
green startups non-green startups based on responses of 1,198 startups
is important for us. The tendency of all start-
(903 non-green and 295 green)
ups towards more impact already described in
Chapter 3.7 is, therefore, not only expressed in
EU 97% their strategic orientation, but also translated
96%
into operational decision-making.
Non-EU Europe 39% fully agree 27%
36% Regarding the classic key performance indica-
tors, most of the green startups focus above all
North America 37% on sales growth (91%), followed by profitabili-
43%
ty (83%) and the competitive position (79%).14
Asia 30% With this focus, they do not differ significant- agree 35%
27% ly from non-green startups.15 Green startups
therefore see themselves as equally growth-,
Africa 16% profit- or competition-oriented but integrate
11%
the positive ecological and social impact much
South America 15% more frequently as an additional key perfor-
13% mance indicator into their operational man-
neutral 25%
agement targets.
Australia/Oceania 13%
12% disagree 9%
0 20 40 60 80 100 fully disagree 4%
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 333.9
Sources of capital
Capital more frequently
based on responses of 862 non-green and 291 green startups
green startups non-green startups
from family & friends,
the crowd and through
own savings 84% bank loans
80%
family and friends 40%
28%
Eight out of ten of all (green and non-green)
state subsidies 35% startups in the dataset finance themselves
36% from savings.16 One-third do this with state
subsidies and through capital from family and
business angels 20% friends. Green startups finance themselves
21%
comparably more frequently through fami-
bank loan 18% ly and friends. Entrepreneurial ideas with an
9% ecological impact thus seem to be more enthu-
siastically funded with capital provided by the
incubator/company builder and/or accelerator 15% founders’ circle of close acquaintances. Also,
13%
capital acquired through bank loans and in-
internal financing (operational cash flow) 15% cubators, company builders and accelerators
22% is comparatively more frequent among green
startups. While financing through crowdfun-
venture capital 14% ding and crowdinvesting is rather minor over-
16%
all, green startups use it 2.5 times more fre-
crowdfunding/crowdinvesting 5% quently than non-green startups. The higher
2% attractiveness of an investment in a startup
company with an ecological impact is hence
venture debt 3% also reflected outside the direct circle of fam-
2%
ilies and friends. Internal financing via the
other sources of capital 1% operational cash flow, on the other hand, is
2% comparatively less common.
ICO/crypto-currency borrowing 0%
0%
16
0 20 40 60 80 100 Multiple choice
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 34“Green startups should approach Objectives pursued in cooperations with established companies
based on responses of 506 non-green and 179 green startups
established companies actively green startups non-green startups
and with self-confidence in order customer/market access 88%
86%
to tackle the important issues of proof of concept 51%
48%
our society together.” reputation/Image
45%
50%
Dr. Irina Tiemann
technology knowledge/expertise 46%
38%
Business Innovation
EWE Aktiengesellschaft fundraising 20%
10%
data (open data) 17%
12%
exit options 11%
3.10 11%
Cooperation more often thus have a special importance. Cooperations 0 20 40 60 80 100
with established companies mainly have the
for the purpose of purpose17 to improve customer and market ac-
technology knowledge cess. In comparison with non-green startups,
green ones more frequently use cooperations
and expertise, fundraising to receive and exchange technological knowl-
and acquiring data
62%
edge and expertise,+18 for fundraising and for
data exchange.+
Green startups actively cooperate with prom- of the green startups benefit from
ising partners. Almost half (49%) of them profit 17 interactions with established
from interactions with other startups, two Multiple choice companies
thirds (62%) from cooperations with estab- 18
lished companies. The latter partnerships The meaning of the symbol “+” is explained in chapter 6.3.
3. To what extent do green and non-green startups differ? Green Startup Monitor 2018
Page 35StartGreen and
the Green Startups
Platform
Support for Green
Entrepreneurs
Comprehensive support for the green startup scene through
the complementary offers of the information and networking
portal StartGreen and the Green Startups Platform of the
German Startups Association.
Green Startup Monitor 2018
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