Racism in the German start-up scene

Founders with an immigrant background apparently receive less venture capital and experience discrimination during their startup.

One in three young entrepreneurs born abroad has had racist experiences in connection with their start-up, as the Mirror reports. This is according to an evaluation by the Federal Association of German Start-ups and the Friedrich Naumann Foundation. Among founders who previously studied in another country, as many as 51 percent have experienced discrimination. Founders who grew up in Germany in the first or second generation have also apparently experienced discrimination when dealing with authorities, banks, investors, landlords or cooperation partners.

The unequal treatment is also evident in the distribution of subsidies. Only one-third of immigrant founders have been able to access government funding so far. That is ten percent less than the average. Founders with an immigrant background also fared worse in the distribution of venture capital.