The economy may be weakening overall, but Saxony is showing resilience in the startup sector: with 91 new startups in 2023, the Free State recorded almost 30% more young companies than in the previous year, bucking the Germany-wide trend, which showed a decline of 5%.
The new report by the Startup Association and startupdetector reveals that despite the general decline in start-up momentum, Saxony's innovative strength stands out in particular. While start-ups across Germany, particularly in the eCommerce and food sectors, were on the decline, the software sector saw an
increase of 21%, signalling confidence in the ongoing digitalization and its efficiency gains.
Three aspects in particular characterize the start-up landscape:
- Despite economic challenges, a high start-up dynamic can be observed in research-intensive ecosystems, especially around universities, which is promising for Germany's positioning as a deep-tech location.
- In Saxony, the start-up dynamics stand out positively, with an increase in start-ups compared to the previous year.
- The software sector is proving to be the driving force behind the industry with a significant increase in new start-ups.
Saxony is once again proving that it is able to act as a driver of innovation and create an environment in which new business ideas can thrive, even in challenging times. This upward trend is a positive signal for the state's economy and represents a significant contribution to strengthening the German start-up scene.
Source: Startup Verband
