I'm the German founder of a UK startup: It's a number of environmental factors: 1. Funding: UK has 3-4x total deal volume compared to Germany [1]. I've heard s

I'm the German founder of a UK startup: It's a number of environmental factors: 1. Funding: UK has 3-4x total deal volume compared to Germany [1]. I've heard somebody say UK (London) is comparable to NY, which is a 2nd tier US VC market. 2. Tax incentives: Early-stage investors get significant tax reliefs under the UK government's Enterprise Investment Scheme (S)EIS. They made a big difference when fundraising, almost every startup I know has used EIS. I see nothing of the sort in Germany. 3. Policy backing: My understanding is that around 2010 the startup sector was seen as a strategic investment both by UK and local governments, in particular the City of London. Which lead to the establishment of Tech City ('Silicon roundabout') as we know it today. In Germany, on the other hand, most politicians aren't aware of how bad the current state is. Of course there is a lip service, but in a way the success of the 'Mittelstand' (SMEs) never made it a necessity to foster startups. 4. Culture: One factor is risk aversion, for certain, but also how Germans perceive innovation plays a big role. I would describe it as an incremental view of innovation rather than disruptive technology, like a new type of car paint that dries 30% faster. I'm not a pessimist at all, but that's really one of the things that makes me bearish for Germany going forward. [1] https://news.crunchbase.com/news/european-venture-report-vc-dollars-rise-in-2019/ https://news.crunchbase.com/news/european-venture-report-vc-...