Depth report

　　

When Jerome Feys came from Paris to Berlin to study for a master's degree in management, he never thought that he would stay and start a business.

    Feith came to Germany in part to hone his German skills while studying at the Berlin campus of ESCP Europe. At the time, he thought he would return to Paris or go to London. Later, he decided to stay in Berlin because he realized that staying here is more suitable for him to pursue his dream of starting a technology company. He said: "I have ideas in Paris, but I can see the way to realize them in Berlin."

    The city of Berlin, described by a former mayor as "poor and sexy", has always attracted Internet entrepreneurs with low rents, a relatively generous visa system and a vibrant culture.

    The arrival of private equity has also helped. According to data from the consulting firm Ernst & Young (EY), in the first half of 2017, German start-ups attracted a total of 264 investments from venture capitalists, with a total financing amount of 2.16 billion euros. In the first half of 2016, 248 investments received by German start-ups totaled only 972 million euros.

    The annual industry report "Deutscher Startup Monitor 2016" compiled by the consulting firm KPMG shows that 30% of the employees of all start-ups in Germany are not German citizens. But in Berlin, this proportion rose to 42%.

    In 2015, the map business of the Finnish technology group Nokia (Nokia) was acquired by BMW, Daimler and Audi for 2.8 billion euros, which sent a clear signal to the world that Berlin has strength Acquire outstanding companies.

    The increase in venture capital activities in Germany this year is basically the result of two rounds of large-scale financing of Berlin startups. In May of this year, delivery service provider Delivery Hero received an investment of 387 million euros from South African internet group Naspers (the company went public in Frankfurt a month later and raised 1 billion euros) (Note: The title of this article is the delivery man of Delivery Hero. ). Also in May of this year, Auto 1 Group, a used car trading platform, received 360 million euros from investors including Baillie Gifford and Target Global, with a valuation of 2.5 billion euros.

    Andreas Kaplan, a marketing professor and principal at ESCP Berlin, said that management masters students are becoming more and more interested in entrepreneurship. He pointed out that ten years ago, only 1% of management masters students founded companies after graduation, but last year the proportion of entrepreneurs reached 14%.

    The problem in Berlin is the lack of local industry to support new technology companies. Unlike London, the global capital of banking, education, media and fashion, the main source of employment in Berlin is government-related jobs. Kaplan said this is why entrepreneurial activities are so important to the city. He said: "Start-ups can provide a lot of new jobs."

    Jerome Feiss and his young, French Jean-Baptiste Molle (Jean-Baptiste Molle) co-founded Vescape, the company developed a fitness app that turns exercise bikes into videos Game Controller. While Faith was studying in Berlin, Moller moved to the London School of Economics (London School of Economics) to study for a master's degree.

    The two compared their respective cities to decide which is best for their new-born business. They chose Berlin mainly because rents in London are three to four times more expensive than in Berlin, but according to Feith, another reason is that they feel that the German government and local communities have provided more support.

    A few weeks after the establishment of the company, the two won a prize of 100,000 Euros in an entrepreneurial competition directed by the German government.

    Last year, Brexit affected London, the biggest rival that competed with Berlin for the center of European start-ups, which promoted the rise of Berlin as an entrepreneurial center. One day after the Brexit referendum last June, a truck passed through central London with a billboard that read: "Dear entrepreneurs, keep calm and move to Berlin." The truck passed the tech startup community in East London.

    Berlin’s business school strives to capitalize on the city’s entrepreneurial boom. At the European School of Management and Engineering (ESMT Berlin)-a private academy located in the center of Berlin-Master of Management students are asked to come up with business ideas and demonstrate them in an entrepreneurial challenge competition that is part of the course .

    Lisa Makarova and Ruben Portz met in this course, and they developed a business plan to develop JetEight. JetEight is an automated booking system for private jet aircraft hire, which was launched in April this year.

    Makarova came to Berlin from Moscow five years ago and initially planned to stay for a semester-part of her degree program in Russia. But she liked the student life in Berlin very much, so she stayed and transferred to a German university to complete her undergraduate studies.

    Makarova also believes that the low cost of living is an important attraction. She pointed out that the monthly rent of an apartment she rented in the suburbs of Berlin is 200 euros, which is impossible to rent such a good house in Moscow at the same price. However, she also acknowledged that other European cities have different appeals to start-ups.

    Although Makarova and Potts want to locate their headquarters in Berlin, they are considering opening a second office in London because it is a global center for private jet leasing agents. Potts said: “In Berlin, it’s easy to get support from other entrepreneurs and investors for your start-up. But all our aviation industry contacts and partners are in London.”