This is why Munich is so attractive for space start-ups

Many start-ups that have even remotely to do with aviation or aerospace are settling in Bavaria. There are good reasons for this, as the example of Reflex Aerospace shows.

When Markus Söder unveiled his big plans shortly before the state elections in 2018, there was a lot of laughter. The likeness of the current Bavarian Minister President was emblazoned on the stage behind him, in blue on a black night sky, with a few stars twinkling around it. Markus Söder was determined to go into space, or at least he wanted to make Bavaria the most important location for anything that could fly.

Bavaria One was the name of the project that was to pump hundreds of millions of euros into Bavaria's aerospace sector in the coming years, and for which "Space-Söder" had to take some criticism. The Bavarians and space? Many people didn't see eye to eye.

But anyone who takes a look at the German or even the European aerospace scene today can no longer avoid Bavaria and Munich in particular. Large companies such as Airbus are based there, as are many start-ups. From the flagship company Isar Aerospace, which took its name from the river in Munich, to Dcubed, Kaskilo and Blackwave, to the laser start-up Mynaric, they have all been drawn to Markus Söder's greater catchment area. But why Bayner of all places, why Munich and not Berlin, Frankfurt or Cologne?

Bavaria promotes aerospace technology

Answers to these questions can be found when you talk to Christian Lindener. He is the perfect hybrid of start-up founder and space manager. Years ago, Lindener founded two start-ups himself, later built up accelerators for Credit Suisse, among others, and most recently worked at Airbus. At the aerospace group, he most recently headed the company's innovation department before joining Reflex Aerospace as a co-founder in early April.

The start-up wants to build satellites in the weight class of about 150 kilos in Germany and has already collected pre-seed funding of 1.5 million euros for this purpose. Currently, the start-up is looking for another twenty million euros to set up its own production, and quite deliberately in Munich, as Lindener. His start-up shows why the location is so attractive.

The founders actually located Reflex Aerospace in Berlin, at least the software part. In the capital, they find the best developers from all over the world, but for production, they want to manufacture in Munich, like many other start-ups in the aerospace sector, and launch their first satellites into space as early as next year. "In the industry, you see a clear division: software in Berlin, hardware in Munich," says Lindener. "Of course, this is due to the different conditions on site."

"In Berlin, we wouldn't even find enough employees in the field"

Christian Lindener, Reflex Aerospace

One of the main reasons for the company to move to Munich is the business environment. Airbus is based in Taufkirchen near Munich, as are the global corporation's suppliers and other startups that have settled in the so-called Space Valley around the Bavarian capital in recent years. These include, for example, Blackwave, a start-up that specializes in the production of carbon parts that Reflex Aerospace could also use for its satellites.

Also on site is a so-called "shaker" from the analysis company IABG. This tests equipment for space missions by simulating vibration, shock or acceleration, for example. "This is a super expensive piece of equipment that we obviously can't purchase ourselves," Lindener says. "Also, with a satellite, any transportation is a risk. So it's great that they'll be sitting around the corner from us," says the co-founder of Reflex Aerospace.

Due to the high number of companies in the aerospace sector, many talented people are drawn to the region, mostly engineers, who also need them at Reflex Aerospace. Start-ups such as Mynaric or Reflex Aerospace then poach them from Airbus, BMW or other companies in the industry, which would not be possible in this way in Berlin. "In Berlin, we wouldn't even be able to find enough employees in this area," says Lindener.

The disadvantage: The young start-up from Munich also has to keep up with the salaries of the Dax groups and established companies. Engineers are paid 160,000 euros a year, sometimes much more. In order to still get employees, Reflex Aerospace therefore entices them with the freedom of a start-up and options for shares in the young company and thus the possibility of one day earning big money in an exit or partial sale.

The high quality of life and the TUM attract talent to Munich

Another draw for talent, according to Lindener, is the high quality of life in Munich. "People don't party as hard and as much here as in Berlin, that's for sure, but the air is clean, there's the Isar River, the mountains on the doorstep, and Italy and Austria right behind: That makes a lot of difference," says Lindener.

However, young people are attracted less by the quality of life than by the Technical University in Munich, which is one of the best in Europe and even worldwide. Especially in the area of start-up support, TUM does an outstanding job. According to the Stifterverband's startup radar, TUM provides optimal support for the formation of startups and ranks first among German universities, with 80 companies founded there each year.

"There's not as much hard partying here as in Berlin, that's for sure, but the air is clean, there's the Isar, the mountains on the doorstep and Italy and Austria right behind: That already makes up for a lot."

Christian Lindener, Reflex Aerospace on Munich as a location

For years, the university has also been focusing on aerospace, and the Faculty of Aeronautics, Astronautics and Geodesy is even getting a huge campus in the south of Munich for this purpose, including a subway connection. By 2030, 55 professorships are to be created there, thousands of students will learn and conduct research every year, and the faculty will become one of the most important on the continent.

Bavaria opens the funding pots - and thus attracts start-ups

The start-up Reflex Aerospace wants to rent up to 20,000 square meters around Munich and set up production for its own satellites there. In addition to the close ties to companies and the university's research focus, a third factor played a role in this decision: money. Every year, Bavaria pumps many millions of euros into supporting aerospace companies because it sees them as a key technology for the future.

At Reflex Aerospace, they already receive half a million euros with smaller projects; if they build up production, the amount quickly shoots into the double-digit millions. "The funding is certainly also a reason for our decision," summarizes Lindener. And once again, a start-up from the aerospace sector is coming to Bavaria. Point for Söder.