Study reveals: German start-ups turn away from the US

A recent study by German digital association Bitkom shows that the US is no longer the undisputed dream destination for German tech start-ups. While crossing the Atlantic was once seen as a crucial step toward global success, sentiment has shifted significantly.

According to a survey of 300 German startups, only 17 percent now consider the US an attractive destination – a sharp decline compared to previous years. Founders cite complex regulations, high cost of living, and growing political uncertainty as key deterrents, with strict data privacy rules and restrictive immigration policies being major turnoffs.

Instead, European hubs like Berlin, London, and Stockholm are becoming preferred alternatives. »Conditions in Europe have improved, while the US has lost some of its appeal«, Bitkom President Achim Berg told Süddeutsche Zeitung. Proximity to home markets, simpler bureaucracy, and access to the EU single market play a decisive role.

Interest in Asian markets is also rising, with Singapore and China attracting start-ups through dynamic tech ecosystems and generous funding programs. However, challenges like cultural barriers and political risks remain concerns for many.

MK