Strong rise in green startups in 2022

According to the Green Startup Monitor 2023, the share of green startups increased significantly again in 2022 and now stands at 35%. At 23%, the proportion of female founders is significantly higher than the average of 18% for non-green startups.

More and more female founders are focusing on environmental sustainability in the development of their company. This is shown by the Green Startup Monitor 2023, which was compiled by the Startup Association and Borderstep Institute. At 35%, the proportion of green companies among German startups has reached a new high. The share of female founders within the segment is above average at 23%.

However, green startups have less money available compared to the previous year, which is a key challenge for 46% of green startups. The study emphasizes the need to improve funding for green business models to drive transformation in the long term.

Another task is measuring sustainability impact, where there is still significant catching up to do. While 52% of startups are aware of their positive sustainability impact, only 27% can substantiate it with facts and figures. It is particularly encouraging that more than half of all startups (55%) state that they manage their impact via corresponding KPIs, which is particularly important against the backdrop of the growing requirements for transparency and sustainability reporting.

The proportion of green companies among German startups reaches a new high. Start-ups quickly bring sustainable innovations into practice, and we should use this speed to finally achieve our climate goals.

Franziska Teubert, Managing Director Startup Association

Green startups are characterized primarily by their focus on combining innovative hardware (material and energy-related technologies, production) and digitization. These hybrid business models, in which the physical and digital worlds combine, continue to gain ground among green startups, increasing from 22% to 30% between 2019 and 2022.

With the Green Startup Monitor 2023, we turn the spotlight on the topic of impact capabilities. Our study is the first in the world to examine the competence of startups to achieve impact.

Prof. Dr. Klaus Fichter, Founder and Director Borderstep Institute for Innovation and Sustainability

Green Startup Monitor

The Green Startup Monitor is an annual study conducted by the Borderstep Institute and the Startup Association to analyze the importance of German startups that contribute to achieving ecological goals with their products and services. The study is based on responses to an online questionnaire answered by 1,518 innovative and growth-oriented companies in Germany that are less than 10 years old. The Deutsche Bundesstiftung Umwelt (DBU) is sponsoring the Green Startup Monitor, which will be available for download from March 29, 2023.

Bundesverband Deutsche Startups e.V.

The Startup Association is an organization that represents the interests and viewpoints of startup companies in Germany. As a representative and voice of startups towards legislation, administration and the public, it promotes innovative entrepreneurship and carries the startup mentality into society. The association sees itself as a network that promotes cooperation and exchange between startups.