Racism in the German start-up scene

Founders with a migrant background apparently receive less venture capital and experience discrimination during their start-up.
News by Janina Gerhardt Janina Gerhardt · Stuttgart, 06. May 2022

Founders with a migrant background apparently receive less venture capital and experience discrimination during their start-up.

Every third young entrepreneur who was born abroad has experienced racism in connection with their start-up, according to the Spiegel reports. This is according to an analysis 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 apparently also experienced discrimination when dealing with authorities, banks, investors, landlords or cooperation partners.

The unequal treatment is also evident in the distribution of funding. Only a third of immigrant founders have been able to access state funding to date. That is ten percent less than the average. Founders with a migrant background also fare worse when it comes to the distribution of venture capital.


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