Innovative twinning

In no other country is there a start-up boom like the one in Israel. Although the country only has about eight million inhabitants, it also has about 4,000 young companies. In other words, there is one start-up for every 2,000 inhabitants.

Berlin is also well placed to become a leading start-up centre in Europe: the consulting firm McKinsey predicts that more than 100,000 new jobs could be created by start-ups in the German capital by 2020. The Federal Republic’s undisputed digital capital is already a hotbed of information and communication technologies: one new internet company is founded in Berlin every 20 hours.

The two cities could benefit from each 
other, the Berliners thought – and are now stepping up their advertising to attract young Israeli entrepreneurs. For example, Berlin presented itself in Israel’s start-up capital Tel Aviv in a large-scale image campaign up that ran until mid-November 2013. The location marketing company Berlin Partner, together with tourism promo­ters Visit Berlin, the Goethe-Institut and other partners, organized numerous events aimed at attracting Israeli entrepreneurs to the German metropolis.

In addition, the third German Israel Congress took place in Berlin in November. Its Business Lab explored possible start-up synergies between Israel and Germany. Young Israeli and German entrepreneurs, investors and incubators exchanged views on the risk and innovation cultures in the two countries, as well as possible avenues of cooperation.

The specific aim here was to jointly develop models for cooperation and to help newly founded businesses move from one country to the other. One result was that the two start-up capitals Berlin and Tel Aviv intend to launch a start-up partnership by 2015 and create new platforms for cooperation and mutual exchange.

There are already several young entrepreneurs from Israel presenting their ideas in Berlin, making contacts with potential customers and even settling in Berlin. “It’s impossible to say how many Israeli start-ups there are in Berlin, since they don’t have to register,” says Hemdat Sagi, Commercial Attaché and Director of the Israel Trade Centre in Berlin. “However, Israeli know-how, which has given our country the title of Start-Up Nation, is certainly a good addition to the young start-up scene here in Berlin.”

Hemdat Sagi knows why Berlin is a good place for young companies from Israel: “Many Israelis see the advantages of Berlin in the low cost of living and the cheap rents for office premises. These factors are helpful during a product’s research-and-development phase.” Furthermore, more venture capital was currently being invested in Berlin than anywhere else in Germany. The world’s highest venture capital rate was also the basis for the start-up boom in Israel, she said. Alongside all the financial arguments, there was also a “soft” criterion in favour of the city: “Berlin is cosmopolitan and has flair.” One thing is certain: both ­cities will benefit from more exchange. ▪

Sybille Wilhelm