Start-up scene becomes greener

More and more people are deciding to start their businesses in sustainable segments. But they have to overcome some challenges.

The share of green startups in all startups in Germany has risen and now stands at 30 percent. This is the finding of a study by the Borderstep Institute, which the institute publishes together with the Bundesverband Deutsche Startups. The so-called "Green Start-up Monitor" is financed and supported by the Deutsche Bundesstiftung Umwelt (DBU).

According to the study, which is being published for the third time this year, there are around 6,000 green start-ups across Germany. According to the study, these are characterized by the fact that they offer environmentally friendly products or services and meet three criteria. These are, firstly, a clear assignment to the so-called Green Economy, a sustainable orientation and that they also pursue this orientation on the basis of company key figures. DBU Secretary-General Alexander Bonde sees great opportunities in sustainable start-ups: "Sustainable digitalisation can be a key to solving environmental problems."

In order to seize these opportunities, the often young companies must also overcome some challenges. According to the study, sales, fundraising and product development are particularly problems that sustainable startup teams must grapple with. As such, they are likely to face similar hurdles as most startups that are not considered sustainable.

Klaus Fichter, director of the Borderstep Institute and co-author of the study, also sees a positive long-term effect from more green startups: "These innovative and growth-oriented young companies not only deliver compelling products, but additionally create positive effects for society as a whole," he says. "Green startups are therefore characterized by a double dividend," Fichter says.

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