Business

Why Bielefeld is Germany’s secret startup capital

Founding a company in Germany normally takes four to eight weeks – a city in North Rhine-Westphalia wants to reduce that to 24 hours. How the “Bielefeld Shortcut” aims to undermine bureaucracy.

While the whole of Germany is still waiting for the 24-hour founding, Bielefeld has already invented it. Five partners from the city have joined forces.

While the whole of Germany is still waiting for the 24-hour founding, Bielefeld has already invented it. Five partners from the city have joined forces.
Hanna Drabon, Founders Foundation, Getty Images; Collage: startup scene

Whether Munich, Berlin or Hamburg – what other German startup metropolises have not yet achieved is what this city in North Rhine-Westphalia wants to make possible: uncomplicated founding of a company in just 24 hours and without any bureaucratic chaos – without numerous forms and long waiting times for feedback.

The Federal Republic has been pursuing the goal of making it easier to start a business for decades. The vision of the 24-hour foundation already appears in coalition agreements in 2021 and 2025. This vision has not yet been implemented nationwide; founding a GmbH, for example, still takes on average at least four to eight weeks.

In Bielefeld, 24-hour start-ups are becoming a reality

In Bielefeld they don’t want to wait until something changes at the federal level. Partners from the Bielefeld startup ecosystem have joined forces and launched the so-called Bielefeld Shortcut.

We want a solution now.

This model is unique in Germany, according to a statement from the initiators. Founders should be able to operate their startup operationally within one day. “We want a solution now and we want a practical solution,” says Hanna Drabon, project manager of the Bielefeld Startup Package, to Gründerszene.

Read too

The EU Commission is investing millions in a German startup – they were convinced with this pitch deck

How does this Bielefeld shortcut work?

The Bielefeld Shortcut is intended to simplify the start-up process by combining several steps of starting a company into a single process. In addition to exclusively digital processes, it includes a single notary appointment.

Founders receive a ready-to-use corporate structure within one working day. This includes:

  1. an operating company (UG or GmbH)
  2. a business account
  3. Liability protection via a subsidized shelf company

In the Bielefeld model, the tax number and account are available from day one. In addition, a holding structure is being set up and basic partnership agreements for investments are being prepared.

Shortcut startups will then be supported with a rental cost subsidy of up to 64,000 euros for the next four years, giving them long-term prospects at the location, the initiators promise. This saves founders time and start-up costs. The Bielefeld shortcut model is expected to start in July 2026, says project manager Hanna Drabon.

Read too

WIN initiative invests 2.64 billion euros – progress in startup financing, but criticism remains

Urban startup ecosystem works hand in hand

To make this model work, five players in the city’s startup ecosystem work together: The Volksbank in Ostwestfalen provides the operating company, subsidizes it and opens the free business account. The Founders Foundation, a non-profit startup incubator, in turn supports the startups in standardized processes.

A good founder wants to spend as little time as possible on administrative and bureaucratic processes.

Dominik Gross, co-founder and CEO of the Founders Foundation, regularly experiences how complex such a start-up process is. Gross and his team in Bielefeld accompanied over 180 startups from the initial idea through the founding process and supported the development of the model based on this know-how.

“A good founder wants to spend as little time as possible on administrative and bureaucratic processes and as much time as possible on building a good product, finding customers and perhaps also finding investors,” he emphasizes in an interview with Gründerszene. If this works faster in Bielefeld than at other locations, the location will become attractive. So a win-win situation for both sides. “Less bureaucracy, simple and quick processes as well as genuine appreciation for entrepreneurial commitment move a location forward,” emphasizes Mayor Christiana Bauer.

The Teuto Seed Club, a community of experienced business angels, is also involved in the conception of the process. The Bielefeld Startup Package from WEGE mbH supports purchase and rental costs and the agency The Trailblazers supports startups with communication and visibility.

At this year's Hinterland of Things conference, the Bielefeld Shortcut was presented for the first time by the actors involved.

At this year’s Hinterland of Things conference, the Bielefeld Shortcut was presented for the first time by the actors involved.

Founders, managers and VCs are calling for reforms nationwide

More than 100 founders, VCs and managers of German tech companies recently wrote an open letter to Chancellor Friedrich Merz. Their message: Germany is increasingly losing ground in international competition and urgently needs reforms in order to become more attractive again for founders, investors and talent. This also includes: less bureaucracy, faster founding. The Bielefeld model sets an example that exactly this is already possible.

Read too

Why NVIDIA is now investing heavily in German AI startups



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close

Adblock Detected

kindly turn off ad blocker to browse freely