Sharp rise in green start-ups in 2022

According to the Green Startup Monitor 2023, the proportion 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 start-ups.

More and more founders are focusing on ecological 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 start-ups has reached a new high. The proportion of female founders within the segment is an above-average 23%.

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

Another task is measuring sustainability impact, where there is still a lot of catching up to do. Although 52% of start-ups are aware of their positive sustainability impact, only 27% can back this up with facts and figures. It is particularly pleasing that more than half of all start-ups (55%) state that they manage their impact using corresponding KPIs, which is particularly important in light of the growing requirements for transparency and sustainability reporting.

The proportion of green companies among German start-ups has reached a new high. Start-ups quickly put sustainable innovations into practice and we should use this speed to finally achieve our climate targets.

Franziska Teubert, Managing Director of the Startup Association

Green start-ups are characterized above all by their focus on combining innovative hardware (material and energy-related technologies, production) and digitalization. These hybrid business models, in which the physical and digital worlds are combined, continue to gain ground among green start-ups and rose from 22% to 30% between 2019 and 2022.

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

Prof. Dr. Klaus Fichter, Founder and Director of the 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 the responses to an online questionnaire completed by 1,518 innovative and growth-oriented companies in Germany that are less than 10 years old. The German Federal Environmental Foundation (DBU) is funding the Green Startup Monitor, which will be available for download from March 29, 2023.

Federal Association of German 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.