London vs. Berlin: Which Is The Winner Of The Startup Battle?

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Two major European startups hubs - London vs. Berlin - fight the battle of the most attractive location to found businesses. But which one will make it?

With 275.000 startups, London was chosen in 2015, as the best city to launch a business in, but Berlin is not a city to overlook, either. In fact, it is the fastest growing startup environment! For now Berlin holds about 171.000 startups, but it’s growing so fast, that it might even surpass the capital of the United Kingdom.

Wondering what 2016 has in store for both of these startup ecosystems? Here is a quick overview of what you can already find in there. It will help you form a general perspective on certain aspects and guide you to make an accurate prediction for this year’s best city to launch a startup in.

Let’s see which one turns out to be the winner: London vs. Berlin.

Financial Aspects

If you plan to start a business in London, it will take you less than 5 days to create it. Plus, for only £ 15 you can even register it online!

In Berlin, it takes at least one week to create your own company for £550. If we are to compare these facts with what happens in other European cities, it’s safe to say that the process of creating a company is accelerated and quite cheap in both of these cities!

Moreover, London holds about £860m investment in VC funding, whereas Berlin has £1 billion stored in this area.

The question that arises now, is whether Berlin will be able to overtake London and give startup founders a better offer, by making the registration process even more accessible than it already is?

Social Interaction

Let’s begin by saying right from the start that, while London holds the title for the most diverse startup ecosystem in Europe with 53% of foreign employees and 50% foreign customers, Berlin is known for being Europe’s startup hub with the highest rate of gender equality: 27% of employees are females.

Living Costs

As you can imagine, living in London is way more pricy than living in Berlin. In more specific terms, living costs in London are 43% more expensive than those in Berlin. Just to give a more detailed image on what is going on, the monthly transportation service in London is 109% higher than the one in Germany’s capital city.

Should you decide to drink a beer in London, you’ll have to take out £4 of your pocket, while in Berlin the same beer will cost £2.35. Not to mention the prices for rent, which in London are 217% higher than in Berlin.

Knowing and fully understanding all the factors which are shaping up the startup ecosystem in two of the most promising European capitals, in what measure will they be impacted this year? Is London going to keep its crown or will it be pass it to Germany? Let us know what you think!


Infographic via 99designs


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