Cologne startup ecosystem robust despite crises

18.04.2023

Despite the economic crisis, Cologne's startup landscape continues to develop positively - the number of startups in our city has risen to 600. The 2022 balance sheet shows: 92 startups were launched last year, and the four most popular sectors continue to be: medicine, e-commerce, software and food. Investors invested around 164 million euros in the startup location Cologne. KölnBusiness supported bold and forward-looking ideas with a total of 1.4 million euros.

Overview

92 startups founded in the crisis year 2022
164 million euros investment volume in Cologne business ideas
KölnBusiness supports bold business ideas with 1.4 million euros

In total, more than 600 startups are driving innovative business models forward and are thus creating jobs in Cologne. This means that the growth of the Cologne ecosystem is continuing. In comparison: Last year (as of May 2022), around 550 startups were active in Cologne. A total of 92 new startups were launched in 2022. In 2021, there were 106 new startups - a decrease of 13 percent. Despite this slight decline, however, the trend for Cologne is above the nationwide figures: In Germany as a whole, 18 percent fewer startups were founded in 2022 than in the previous year.

Financing rounds up, volume down slightly

"Despite difficult times, Cologne remains a sought-after location for startups. Cologne's startup landscape continues to grow, although investors tend to withdraw capital and foundings are generally becoming more difficult. Cologne is robustly positioned and therefore performs better than the national average. This shows: The diverse ecosystem combined with Cologne's science landscape provides ideal ground for young startups. This is flanked by a broad-based economy that is both partner and customer," says KölnBusiness Managing Director Dr. Manfred Janssen.

In terms of the number of financing rounds, the positive trend from previous years is continuing: in 2022, funds, business angels and other financiers invested in at least 91 rounds. This represents growth of more than ten percent compared to the previous year.

A total of 164 million euros in investment money flowed into Cologne startups - around eleven percent less than in the previous year. By comparison, the total value of all investments nationwide fell sharply by 43 percent. Thus, Cologne is clearly above the negative trend here as well. Almost half of the money flowed into early-stage startups - with sums ranging from four to 15 million euros. At 90 percent, young startups make up the majority of all startups in Cologne. They are characterized by a headcount of less than 50 employees.

"In Cologne, almost 500,000 euros a day are invested in startups - investments remain stable even in challenging times. The reason lies in the profile of the startup location. Investors primarily find startups in Cologne that are still at the very beginning. Innovative ideas are supported in the early stages, which means that investment sums are initially lower. This can later give rise to real success stories. This is demonstrated by the Cologne-based AI company DeepL, which is worth more than one billion euros. This start-up spirit strengthens the business location as a whole and creates the jobs of tomorrow," says Dr. Manfred Janssen.

New startups strongest in the medical sector

Looking at the startups by sector, the following picture emerges for 2022: Most of the new Cologne startups were founded in the medical sector (12 startups). Founders in this sector develop, for example, digital solutions for the care segment and test centers, psychological support services or innovative diagnostic and medical products. The second most frequent start-ups in 2022 were in the area of e-commerce, i.e. online and internet trade (10 start-ups), followed by innovations in software (9) and food (8). These four sectors also accounted for the most startups in the past four years.

Support from KölnBusiness

Every year, KölnBusiness supports hundreds of founders in many ways: In addition to start-up and financing advice, networking events and help with trade fair appearances, KölnBusiness supported bold business ideas and innovative models with 1.4 million euros. KölnBusiness was able to bring 840,000 euros in funding for founders to Cologne through the Gründerstipendium.NRW. A total of 70 founders received the scholarship in 2022, in addition to around 556,000 euros in funding with which KölnBusiness directly supported the Cologne startup ecosystem. With the open database "Startup-Map Cologne", KölnBusiness also offers a transparent insight into the startup ecosystem.

Startup foundings 2022: Three examples from Cologne

Detechgene

The startup is working on diagnostic technologies that are readily available and affordable. The rapid tests enable the detection of all known viral, bacterial or fungal pathogens. The project is funded by the University of Cologne and KölnBusiness.

ClipClap

The startup offers an adapter that can turn everyday shoes into road bike shoes which can be connected to clipless pedals. The founder and founders are graduates of TH Köln.

emiigo

emiigo is an AI-supported product database for locally available products with real-time inventory and a map of the surrounding area: It enables digital searches in local stores as well as delivery by cargo bike. KölnBusiness advised the team during the start-up phase.