Verena Pausder, the head of the German Startup Association, believes that the startup sector holds enormous potential for the German economy. She points to significant growth, noting that major startups have created 100,000 new jobs in the last four years, suggesting that job creation will accelerate in the coming years.
However, she cautions that the recent surge in new businesses-with just 3,000 tech startups founded in the first half of the year alone-is not the result of favorable politics, but rather the achievement amidst current obstacles. According to Pausder, these foundations have emerged not because policymakers gave permission, but despite the significant bureaucratic hurdles involved in setting up a business in Germany, a process that can take weeks compared to just a day in some other EU countries.
Having herself founded and later sold a startup, Pausder speaks of a deep, widespread desire to innovate and improve the world. She cites companies like Isar Aerospace, which could soon produce 40 satellite carrier rockets annually, and Proxima Fusion, which is working on Germany’s first magnet-based fusion power plant. These ventures, she explains, are driven by optimism. “People start them because they believe the world won’t end tomorrow. I want to improve it significantly, expand it, and put Europe on the map. And I believe this healthy degree of optimism is beneficial for Germany,” Pausder added, suggesting that “crisis times are also entrepreneurial times.”
Pausder also acknowledges a shift in thinking within the federal government. “The politicians have realized something is happening here, and they should look at how they can amplify it,” she stated. Crucially, she urges greater investment in startups, encompassing support from insurers and pension funds, arguing that Germany is currently too risk-averse. She highlights the “Win Initiative,” launched by the governing coalition, which commits insurance companies and pension funds to directly invest 12.5 billion euros in venture capital. Pausder emphasized that this funding does not require government budget allocations or taxpayer money. She stressed the need for the government to follow up on this commitment, stating that if she were Chancellor, she would invite the involved parties to the Chancellery to discuss the shortfall between the pledged 12.5 billion and the current 2.3 billion, asking how she could help achieve the 2030 goal.
Finally, Pausder called for improvements in the process of business creation directly stemming from universities. She noted that the current system is complex, lacking standard contracts and clear rules on how professors and the universities benefit. She stressed the importance of this area, saying, “The gold of our country lies at our higher education institutions. We possess world-class research and development, the best scientific innovations in every field that the future requires.”
