Hamburg's startup scene on growth course despite corona

Even in a crisis, Hamburg remains highly attractive for start-ups, said Michael Westhagemann, Senator for Economics. During the first 21 days of 2021, five new startups were welcomed to the city. The senate's innovation strategy and funding for startups, which has been in place for years, paid off in the crisis-torn year 2020: "We have launched targeted assistance for startups and growth-oriented SMES to help them through these difficult times. The senate has ensured that by expanding the corona protective shield and prolonging and increase the volume of the Corona Recovery Fund,  (CRF), this will be the case in future."

The CRF has been extended until June 30, 2021, and the volume of funds raised from EUR 50 million to EUR 100 million. It benefits startups and SMEs with long-term venture and equity financing. The Innovation Starter Fund at the Hamburgische Investitions- und Förderbank (IFB) counts among the most active investors in the crisis.

However, the coronavirus pandemic has not left Hamburg's startup scene unscathed. The 218 new startups in 2020 were offset by 79 startups which were by hit liquidations, relocations and inactivity. While the obligation to file for insolvency has been suspended, it remains to be seen how small companies that use their own financial resources and do not have large investors fare in future.

tn/sb/pb