The recently published Green Startup Monitor shows that sustainable startups have left the niche. In 2018, 26 percent of young innovative growth companies in Germany were operating with products and services that contribute to a green economy. They are summarized under the term “Green Startups”.
The key findings from the Green Startup Monitor
Green startups are planning similar revenue and employee growth as non-green startups. However, they see this planned growth much less as a challenge than non-green. Green are 36 percent and non-green are 46 percent.
Green startups are much more interested in internationalization than non-green startups. Especially in the group of particularly growth oriented startups. Green startups often call the internationalization of their business activities more important than currently important corporate goals.
Green startups find easier employees. Especially in the field of IT it is easier for green startups to fill vacancies. 91 percent of the green startups plan to recruit seven new employees on average over the next twelve months.
Green startups currently still disadvantaged
Dr. Yasmin Olteanu, researcher at the Borderstep Institute and author of the monitor, says green startups are found in all industries and technology sectors. Nevertheless, sustainable companies in many markets are struggling with high barriers. In terms of startup support, she sees Green Startups partly disadvantaged. She also says, in fundraising green startups see a challenge much more often than non-green startups. In their monitor, they not only record the numbers, but recommend measures to improve the startup and market environment of green startups in Germany.
We need radical innovations
Alexander Bonde, Secretary General of the German Federal Environmental Foundation (DBU), highlights the importance of green startups in the context of the Green Startup Monitor and current problems.
According to him environmental challenges such as climate change offer competitive market opportunities for companies. And green startups have understood that. Green startups have the potential to become a transformational engine for climate and resource conservation. Some of them develop completely new structures and working models, and more often than established companies. They also develop radical innovations that we urgently need for a sustainable society and current environmental tasks.