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Why in the world does Germany not have a decent VC/investment industry? Seems like some companies and people are loaded with cash but they'd rather keep it in a
by jotm 7y ago
Why in the world does Germany not have a decent VC/investment industry? Seems like some companies and people are loaded with cash but they'd rather keep it in a bank than risk it on a new startup. You're not going to get many innovative startups doing that...
- ktpsns 7y agoThe standard explanation to this question is that Germans are risk-averse. People don't trust stocks but better want to save their money in a savings bank book. (That won't cover the whole situation, it's rather a two sentence summary)
- 1337biz 7y agoHistoric risk aversion. The two wars, the DDR, the Eurozone. Germans have experienced over and over again that they can't count on the government to make good decisions for their money. I know quite a few who try to keep their bank balance always around a zero and invest the money they have in other forms of storage they feel more ownership about (i.e. real estate).