Fichter, K., Olteanu, Y., Hirschfeld, A., Walk, V., Gilde, J., Grothey, T. & Neumann, T. (2024). Green Startup Monitor 2024. Berlin: Borderstep Institute, German Startup Association.

Green start-ups make a significant contribution to the transformation of the economy. This is shown by the latest Green Startup Monitor 2024 (GSM), which the Borderstep Institute and the Startup Association published for the sixth time in 2024. The project was funded by the German Federal Environmental Foundation (DBU).

Sustainability remains important

Almost one third of all start-ups in Germany can be classified as green. With visionary ideas, they are driving forward sustainable solutions. However, given the current challenges in the market and financing environment, their share has declined slightly. More than half of these green start-ups aim to grow quickly and achieve a high market share. This combination of economic and environmental goals is crucial for effectively addressing the climate crisis. Start-ups are accelerating the transformation of our economy in key sustainability areas such as the energy transition and the circular economy.

More women in leadership positions at green start-ups

Green start-ups have a higher share of female founders than other start-ups (24% vs. 17%), and this is also reflected at company leadership level. Green start-ups are therefore important frontrunners in terms of diversity and are also better positioned when it comes to the crucial issue of attracting talent.

Impact management is becoming more professional

Clear indicators and their measurement are a key success factor for the green transformation. Here, a positive trend can be observed: compared with the previous year, the share of green start-ups that can substantiate their sustainability impact with data and evidence has risen from 27% to 39%. This suggests that more support is available and that requirements for impact management are becoming clearer.

The Green Startup Monitor 2024 is available for free download.

Key findings from the Green Startup Monitor 2024

Sustainability remains important

At 29%, green start-ups continue to represent a significant share of Germany’s start-up ecosystem. However, their share has declined compared with the previous year (GSM 2023: 35%). This suggests that environmental objectives are becoming less important for some start-ups in the current challenging market and financing environment.

Identification with the Green Economy remains stable

While the strategic focus on sustainability goals and related KPIs has declined compared with the previous year, the share of start-ups identifying themselves as part of the Green Economy remains high and stable at 47% (46% in 2023). This is the highest value ever recorded in the GSM.

Willing and able to create impact

Progress is visible in impact management compared with the previous year, indicating increasing professionalisation in this field. The share of green start-ups that can substantiate their sustainability impact with data and evidence has risen from 27% to 39%. Among non-green start-ups, the share increased from 7% to 14%.

Accelerators of transformation

Contrary to the assumption that green start-ups tend to follow a “small is beautiful” philosophy, the GSM 2024 shows that more than half of them (56%) consider both rapid growth and a high market share to be fairly or very important. In this respect, they are on a par with non-green start-ups (55%).

More women in leadership

Green start-ups continue to have a significantly higher share of female founders (24%) than non-green start-ups (17%). This is also reflected at the next management level, where women account for 30% compared with 23% in non-green start-ups.

Driving innovation and knowledge transfer

Green start-ups cooperate more frequently with universities and research institutions than non-green start-ups (54% vs. 38%). Better conditions for commercialising research results, such as patents and intellectual property rights, are also more important to them (67% vs. 55%).

Partners for industry

Green start-ups also cooperate more frequently with established companies than non-green start-ups (71% vs. 58%). Contrary to the overall trend, this figure has increased among green start-ups compared with the previous year, underlining the growing importance of green technologies.

Figures

Which German states are home to the largest number of start-ups?

North Rhine-Westphalia leads the ranking, accounting for 20% of all green start-ups, followed by Berlin (17%) and Bavaria (12%).

In which German states is the share of green start-ups highest?

Saarland ranks first, with green start-ups accounting for 37% of all start-ups. Hesse and Mecklenburg-Western Pomerania share second place at 33%, followed by Schleswig-Holstein at 32%.

Which business models stand out?

Hardware-based solutions lead the way: technology development and production is the most important business model for green start-ups. Its share increased from 22% in 2019 to 32% in 2023.

How closely connected are green start-ups to established companies?

Green start-ups lead when it comes to cooperation with established businesses. In 2022, 67% engaged in cooperative projects with established companies, rising to 71% in 2023. Among non-green start-ups, the figure was lower and declined from 62% in 2022 to 58% in 2023.

Which issues are particularly challenging for green start-ups?

As in the previous year, customer acquisition (54%), raising capital (52%) and product development (43%) are the main challenges facing green start-ups. Financing is particularly difficult for green start-ups: only 40% of non-green start-ups report problems with raising capital.

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