The German market for international startups

68
The German market for international startups Friday SEPTEMBER 6 TH from noon – 2pm
  • date post

    17-Oct-2014
  • Category

    Technology

  • view

    1.723
  • download

    1

description

 

Transcript of The German market for international startups

Page 1: The German market for international startups

The German market for international startups

Friday SEPTEMBER 6TH from noon – 2pm

Page 2: The German market for international startups

Drank lots of beer and met girls

Discovered that there is more to life

The tools and confidence to go do it

Big Corp was not for me

Strategic overhaul of US biz & started EU biz

First entrepreneurial experience

Dive into tech and project management

Building something great & having fun!

My story about.me/akonig

Page 3: The German market for international startups

Why Germany is a great market for startup’s

Page 4: The German market for international startups

One of the largest & most stable economies

about.me/akonig

Page 5: The German market for international startups

4th largest market in the world! about.me/akonig

Page 6: The German market for international startups

The central hub of Europe about.me/akonig

Page 7: The German market for international startups

Manufacturing second to none about.me/akonig

Page 8: The German market for international startups

World-class infrastructure about.me/akonig

Page 9: The German market for international startups

Der Mittelstand – they are just like YOU

about.me/akonig

Page 10: The German market for international startups

Export champion about.me/akonig

Page 11: The German market for international startups

Largest funding hub in Europe about.me/akonig

Page 12: The German market for international startups

Made in Germany! about.me/akonig

Page 13: The German market for international startups

Most respected country on the globe

http://www.bbc.co.uk/news/world-europe-22624104

about.me/akonig

Page 14: The German market for international startups

Leading R&D destination

Page 15: The German market for international startups

R&D leader in Europe and the world

Basic year 2009 (data in %). Survey is based on 700 opinions provided by international decision makers.Source: Ernst & Young (2009)

about.me/akonig

Page 16: The German market for international startups

Fueled by research & academics

Source: IMD World Competitiveness Report (2010)

about.me/akonig

Page 17: The German market for international startups

And across industries & sectors

Source: IMD World Competitiveness Report (2010)

about.me/akonig

Page 18: The German market for international startups

Key technologies fostered by the government

about.me/akonig

Page 19: The German market for international startups

The German Excellence Initiative

Page 20: The German market for international startups

Goals & Origins

The Excellence Initiative aims to promote top-level research and to improve the quality of German universities and research institutions in general, thus making Germany a more attractive research location, making it more internationally competitive and focusing attention on the outstanding achievements of Germany universities and the German scientific community.

After the Excellence Initiative was passed by the German federal and state governments in 2005, the DFG was given responsibility for running the initiative together with the German Science Council.

Between 2006 and 2011 the DFG received a total of €1.9 billion in additional funding for the three funding lines of the initiative:• Graduate schools to promote early career researchers• Clusters of excellence to promote top-level research• Institutional strategies to promote top-level university research

The DFG is jointly responsible for running the initiative together with the German Council of Science and Humanities, which is primarily responsible for the third funding line (institutional strategies).

In June 2009 the federal and state governments approved continuing the Excellence Initiative for another five years (2012 through 2017), allocating €2.7 billion in funding.

In June 2012 funding was awarded for 45 graduate schools, 43 clusters of excellence and 11 institutional strategies.

about.me/akonig

Page 22: The German market for international startups

The funded projects• Nanoscale Microscopy and

Molecular Physiology of the Brain Göttingen

• Integrated Climate System Analysis and Prediction (CliSAP) Hamburg

• Religion and Politics in Pre-Modern and Modern Cultures Münster

• Cellular Stress Responses in Aging-associated Diseases (CECAD) Köln

• Tailor-Made Fuels from Biomass Aachen

• The Formation of Normative Orders Frankfurt

• NeuroCure - towards a better outcome of neurological disorders Berlin

• Topoi - The Formation and Transformation of Space and Knowledge in Ancient Civilizations Berlin

• Asia and Europe in a Global Context: The Dynamics of Transculturality Heidelberg

• Cognitive Interaction Technology Bielefeld

• Hearing for all: Models, technology and solutions for diagnostics, restoration and support of hearing Oldenburg; Hannover

• BrainLinks – BrainTools Freiburg• Precision Physics, Fundamental

Interactions and Structure of Matter (PRISMA) Mainz

• Werner Reichardt Centre for Integrative Neuroscience (CIN) Tübingen

• Simulation Technology Stuttgart• Unifying Concepts in Catalysis Berlin• Engineering of Advanced Materials -

Hierarchical Structure Formation for Functional Devices Erlangen

• Cells in Motion - CiM: Imaging to Understand Cellular Behaviour in Organisms Münster

• Munich Cluster for Systems Neurology (SyNergy) München

• ImmunoSensation: The Immune Sensory System Bonn

• Image Knowledge Gestaltung. An Interdisciplinary Laboratory Berlin

• Cluster of Excellence on Plant Sciences - from complex traits towards synthetic modules Düsseldorf

• Center for Advancing Electronics Dresden (cfAED) Dresden

• RESOLV (Ruhr Explores Solvation) - Understanding and Design of Solvent Controlled Processes Bochum

• The Hamburg Centre for Ultrafast Imaging (CUI): Structure, Dynamics and Control of Matter at the Atomic Scale

• Merge Technologies for Multifunctional Lightweight Structures – MERGE Chemnitz

• The Ocean in the Earth System - MARUM - Center for Marine Environmental Sciences Bremen

• Cultural Foundations of Social Integration Konstanz

• Mathematics: Foundations, Models, Applications Bonn

• REBIRTH - From Regenerative Biology to Reconstructive Therapy Hannover

• The Future Ocean Kiel• Cellular Networks: From Molecular

Mechanisms to Quantitative Understanding of Complex Functions Heidelberg

• Center for Integrated Protein Science Munich (CIPSM) München; Freising

• Macromolecular Complexes in Action Frankfurt

• Integrative Production Technology for High-Wage Countries Aachen

• Cardiopulmonary System Frankfurt; Gießen

• Origin and Structure of the Universe Garching; München

• Munich-Centre for Advanced Photonics (MAP) Garching; München

• Center for Regenerative Therapies Dresden (CRTD) Dresden

• Multimodal Computing and Interaction. Robust, Efficient and Intelligent Processing of Text, Speech, Visual Data and High Dimensional Representations Saarbrücken

• BIOSS Centre for Biological Signalling Studies - from Analysis to Synthesis Freiburg

• Inflammation at Interfaces Kiel

about.me/akonig

Page 23: The German market for international startups

German culture and business etiquette

Page 24: The German market for international startups

The Germans about.me/akonig

Page 25: The German market for international startups

Germans tend to live by certain rulesIn many respects, Germans can be considered the masters of planning. • This is a culture that prizes forward thinking and

knowing what they will be doing at a specific time on a specific day.

• Careful planning, in one's business and personal life, provides a sense of security.

Rules and regulations allow people to know what is expected and plan their life accordingly.• Once the proper way to perform a task is

discovered, there is no need to think of doing it any other way.

• Germans believe that maintaining clear lines of demarcation between people, places, and things is the surest way to lead a structured and ordered life.

Work and personal lives are rigidly divided.• There is a proper time for every activity. When the

business day ends, you are expected to leave the office.

• If you must remain after normal closing, it indicates that you did not plan your day properly.

Tip 1 - Germans are uneasy with uncertainty and ambiguity. They like to analyze problems in great depth before reaching a conclusion and are uncomfortable with 'feelings' or 'hunches' in the business setting.

Tip 2 - In-depth, long-term planning is both expected and respected. Such planning helps, in large measure, to shape the future.

Tip 3 - The greatest amount of respect is due to the person with the greatest depth of technical merit. Therefore, education is highly prized.

Tip 4 - Once decisions have been made, everybody is expected to carry them out without question, regardless of their agreement or disagreement with the original decision.

Tip 5 - The boss is expected to know his/her subject & give clear leadership. As there is a strong respect for authority, subordinates will rarely contradict the boss in public.

http://www.tatsachen-ueber-deutschland.de/en/

about.me/akonig

Page 26: The German market for international startups

Business etiquette in Germany about.me/akonig

Page 27: The German market for international startups

• Never underestimate the importance of punctuality in German business culture.

• Be prepared to make an appointment for most things.

• This includes longer phone calls• The preferred times for business appointments are

between 10:00 a.m. and 1:00 p.m. or between 3:00 p.m. and 5:00 p.m.

• Avoid scheduling appointments on Friday afternoons, as some offices close by 2:00 p.m. or 3:00 p.m. on Fridays

• Dress in corporate business and banking is generally formal, dark and conservative suits for both men and women.

• Khakis with a simple jacket/blazer would be inappropriate.

• The German manager concentrates intensely on two objectives: product quality and product service.

• In German business culture, it's not uncommon for colleagues who have worked together for years to remain on a formal, last name basis.

• If you do not speak German, be careful of automatically addressing a person in English. While Germans generally speak very good English, some may well feel offended at the presumption.

Attention to detail will get you a long way

Tip 6 - Outbursts of emotion in the workplace are seen as signs of weakness and lack of professionalism.

Tip 7 - Employees expect to be given precise, detailed instructions regarding specific tasks, but then expect to be left to carry them out without undue interference or supervision.

Tip 8 - Relationships between bosses and subordinates tend to appear somewhat formal.

Tip 9 - Appraisal systems are difficult to implement. Germans are expected to perform their tasks professionally and correctly. Why should positive feedback be necessary?

Tip 10 - German companies tend to be hierarchical and departmentalised. Each department seems to guard its power base and information is expected to flow through proper channels.

Tip 11 - Meetings tend to be formal, unless on a one-to-one basis. If you want to find out opinions, possible trends of thinking etc., it is often more successfully done in an informal one-to-one meeting.

about.me/akonig

Page 28: The German market for international startups

Always be prepared with a 12 step plan

about.me/akonig

Page 29: The German market for international startups

Germans do not need a personal relationship in order to do business.• They will be interested in your academic credentials

and the amount of time your company has been in business.

• Germans display great deference to people in authority, so it is imperative that they understand your level relative to their own.

• Germans do not have an open-door policy. People often work with their office door closed. Knock and wait to be invited in

German communication is formal.• Following the established protocol is critical to building

and maintaining business relationships.• As a group, Germans are suspicious of hyperbole,

promises that sound too good to be true, or displays of emotion.

• Germans will be direct to the point of bluntness.• Expect a great deal of written communication, both to

back up decisions and to maintain a record of decisions and discussions

• Business Meeting EtiquetteInitial meetings are used to get to know each other. They allow your German colleagues to determine if you are trustworthy.

• Meetings adhere to strict agendas, including starting and ending times.

• At the end of a meeting, some Germans signal their approval by rapping their knuckles on the tabletop

No seriously, be prepared

Tip 12 -- Germans usually arrive extremely well prepared-for meetings with all the facts and figures at their disposal. The idea of attending an important meeting with no firm opinion would be quite unusual.

Tip 13 - The truth does not lie in a compromise or middle ground between two conflicting ideas. Compromising can be seen as weakness, diffidence or uncertainty.

Tip 14 - It is better to say nothing than to comment on topics about which you have no particular knowledge or expertise.

Tip 15 - More reliance is placed on the printed than the spoken word and it is always important, therefore, to put information, decisions etc. in writing.

Tip 16 - Punctuality is important - do not be guilty of stealing time.

Tip 17 - Germans may seem extremely formal - even amongst themselves. This over-formality is a sign of respect as is using the formal Sie and Herr or Frau with people they may have known for many years.

about.me/akonig

Page 30: The German market for international startups

German humor

http://german-themovie.goethe.de/en/index.html

….cannot be put into words!

But it can be experienced online at

about.me/akonig

Page 31: The German market for international startups

Visa Requirements

Page 32: The German market for international startups

Who Needs a Visa?

• http://www.germany.info/Vertretung/usa/en/05__Legal/02__Directory__Services/01__Visa/__Business__Visa.html

• http://www.germany.info/Vertretung/usa/en/05__Legal/02__Directory__Services/01__Visa/__Employment__Visa.html

• http://www.auswaertiges-amt.de/EN/Infoservice/FAQ/VisumFuerD/Uebersicht.html?nn=480902

Non-European Union Nationals• Most non-EU nationals require a visa

prior to entering Germany• Different visas for short-term stays

less than 90 days (Schengen Visas) and long term (national visas)

• There are exceptions for several countries including the United States - Americans may stay in Germany up to 90 days without any visa

European Union Nationals• EU nationals may enter, stay, and

work in Germany without any visa for up to 90 days

• They must register at the local registration office which issues a declaratory residence permit if their stay in Germany exceeds 90 days

about.me/akonig

Page 33: The German market for international startups

All nationals from outside the EU, EEA, and Switzerland require a visa to perform the steps necessary to set up a business in Germany.

Different types of visas depending on the intended business activities in Germany• Visas sufficient for the setting up of a business (Schengen Visas normally apply in this

case)• Visas required for running the business on-site (usually national visas) The Schengen Travel Visa (Business Visa) – will be sufficient to complete most activities• Allowed to stay in Germany for up to three months per half year to complete business

activities

What is needed when applying for a Schengen Travel Visa?• A letter of invitation by the German business partner• Documentation of employment and salary certificate• A letter from the applicant’s employer confirming the business purpose of the trip• Proof of travel health insurance• Other documents may be required

Visa – Limited Business Visa about.me/akonig

Page 34: The German market for international startups

If you intend to stay in Germany for more than 90 days you will need a residence permit. • The residence permit is limited in time and issued for a specific purpose (such as taking

up work)• The permit includes both the right of residence in Germany and the permit to work in a

self-employed capacity• Issued as a single document by the responsible visa-issuing authority• The Residence Permit is necessary for the Purpose of Self-Employment

You are considered self-employed if you intend to run a business on-site in Germany• Entrepreneurs (including freelance activities)• Managing partners or employed managing director and representatives of a company’s

German branch office• Executive board members of stock corporations (AG)• Authorized signatories• Senior executives with powers of representation• Majority shareholders of a GmbH

• A residence permit for the purpose of self-employment will usually be granted if

1. at least EUR 250,000 is invested and 2. at least five new jobs are created

• A permit may still be granted in other situations determined by the local authorities

Visa – Running the Business On-Site

about.me/akonig

Page 35: The German market for international startups

A (permanent) settlement permit is unrestricted in time and place • It automatically includes the right to take up gainful employment• It is issued if a foreigner has been in possession of a residence permit for five years• Self-employed foreigners may be granted a settlement permit after only three years if

the foreigner has successfully realized the business idea and his or her livelihood is secured

Visa – Settlement Permit about.me/akonig

Page 36: The German market for international startups

The EU Blue Card

• http://www.apply.eu/• http://www.bluecard-eu.de/eu-blue-card-germany/

Designed to make Europe a more attractive destination for highly educated workers • All EU member states, except the United Kingdom, Denmark and Ireland, participate in

the EU Blue Card program• Similar to the Green Card issued by the United States• Gives you the right to work within the European Union and receive the same benefits

as citizens• Allows for easier mobility within the EU member states• Blue Card is valid for the length of your working contract and up to 4 years

Conditions for application• You have to be a non-EU national• In possession of a higher education qualification• You have a valid work contract, or binding job offer, in the EU

about.me/akonig

Page 37: The German market for international startups

Establishing a business in Germany

Page 38: The German market for international startups

Establishing a business in GermanyAny entrepreneur who wishes to start a business in Germany may do so: there are generally no restrictions limiting the establishment of new companies• Nevertheless, establishing a business in Germany requires a sequence of several

specific steps from choosing the appropriate legal form for the business to entry in the trade register.

Formation procedures are swift and efficient, with only a few steps needed to establish a company in Germany• Foreign investors can choose between several types of corporations and partnerships for

conducting business in Germany

Existing foreign companies can also conduct business via a German branch office.• Corporations• Partnerships• Branch Offices

For more information visit http://www.gtai.de/GTAI/Navigation/EN/invest.html

about.me/akonig

Page 39: The German market for international startups

Corporations

When choosing the legal form of the company, a corporation is usually the best option for larger, established companies.• A corporation is a legal person, meaning that the holder of rights and obligations is not

the individual shareholder, but the company itself• The company itself concludes contracts, possesses assets and must pay taxes• Liability is limited to the corporation's business assets, including share capital• A minimum share capital is required, and the accounting obligations are more extensive

than those for other business legal forms (such as partnerships)

There are three major forms of corporations under German law• Private Limited Liability Company (GmbH)• Stock Corporation (AG)• Partnership Limited by Shares (KGaA)

about.me/akonig

Page 40: The German market for international startups

Partnerships

The main feature of a partnership is the personal commitment of the partners to their working efforts to the partnership• Any partnership requires at least two partners• The liability of the partners for the partnership's debts and liabilities is generally

unlimited and personal. • No minimum share capital is required, and the accounting obligations and publication

requirements are less extensive than those for corporations

There are four major forms of partnerships. Their main difference lies in the liability of their partners and required registration obligations• Civil Law Partnership (GbR)• General Commercial Partnership (oHG)• Limited Partnership (KG)• Corporate Partnership (GmbH & Co. KG)

A Partnership Company (Partnergesellschaft or PartG) is a form of partnership specifically designed for the joint exercising of professional freelance activities, such as architects.

about.me/akonig

Page 41: The German market for international startups

Branch offices

Any foreign company with headquarters and business operations outside of Germany can establish a German branch office• A branch office is a suitable business form for a foreign company wanting to establish a

presence in Germany for the purpose of initiating business and maintaining contacts with business partners.

• A branch office has no independent or separate legal personality distinct from the head office itself.

• In legal and organizational terms, it is part of the head office business and is thus subject to the law governing the head office

• A business branch forms part of the foreign company’s organization.

The legal liability of the branch office depends on the liability of the legal entity of the head office• Autonomous Branch Office (selbstständige Zweigniederlassung)• Dependant Branch Office (unselbstständige Zweigniederlassung)• Representative Office

about.me/akonig

Page 42: The German market for international startups

Entry in the register

Generally speaking, your business in Germany must be registered with the commercial register (Handelsregister) and the local trade office (Gewerbeamt)• With the exception of civil law partnerships, freelance professionals, and dependant

branch offices, all other establishment forms mentioned above have to register with the commercial register

• Any business must then be registered with the local trade office (Gewerbeamt) of the municipality in which the business is located. This applies to every company regardless of its company form (except freelance professionals).

about.me/akonig

Page 43: The German market for international startups

Entry in the commercial register

The commercial register is administered by the local courts (Amtsgericht) and ensures legal certainty in trade by providing a record of all current and legal business relationships. This includes, for example:• Company name• Name of the owner and/or of the personally liable partners of a partnership• Liability of the limited partners• Share capital of the GmbH• Granting and withdrawal of general powers of attorney (Prokura)• Institution of bankruptcy proceedings• De-registration of the company

Any application for entry into the commercial register must be submitted by a German notary in certified and electronic form. • If a company is legally required to be registered, but takes up business operations

before being entered in the commercial register, the partners are personally liable for any losses up to the point of registration

• The cost for registration and publication in the commercial register for a partnership is currently EUR 250 minimum.

• For a GmbH, this amount is at least EUR 400• And for an AG at least EUR 50• Additional costs are incurred through the use of a notary.

about.me/akonig

Page 44: The German market for international startups

Entry in the trade register

Every company is obliged to register with the local trade office (Gewerbeamt) of the municipality in which the business is located. • The fee for entry into the trade register for business activities not requiring a license is

between EUR 20 and EUR 40• The fee for businesses requiring a license depends on the sector the business is

operating in. Some business activities might require a craftsmen's card (Handwerkskarte) for registering with the trade office. The German Trade and Crafts Code (Handwerksordnung) classifies business activities which require a craftsmen’s card. 

Chambers in Germany perform more than just typical association tasks. They are:• representing the interests of their member companies in dealings with the government• taking on interim and final examinations for employee training• drawing up reports for courts and authorities regarding for instance company names• The costs for chamber membership are based on the company's turnover

about.me/akonig

Page 45: The German market for international startups

Transferring assetsIt is advisable that anyone who runs a business in Germany also has a bank in Germany• To open a private bank account you generally must have a valid passport and written

confirmation that Germany is your current place of residence from the local Public Office (Bürgeramt).

• For a company bank account, the requirements depend on the legal form of the company.

• In addition to a valid passport you will generally need an excerpt from the commercial register and the articles of association of the company.

 Capital can be moved in and out of Germany without any restrictions. • Amounts over EUR 12,500, or equivalent payments with valuables, must be reported to

the German Central Bank (Bundesbank)• Payments for the import or export of goods and details in connection with the granting,

taking out, or repayment of loans with an originally agreed term of less than twelve months do not have to be reported.

• Receivables or liabilities from companies (for example, banks) or private individuals abroad must be reported to the Bundesbank if they amount to more than EUR 5 million or equivalent. 

 Goods and machinery can circulate freely within the EU. Customs, import turnover tax (Einfuhrumsatzsteuer), and in some cases, special excise taxes are charged for imports to Germany from non-EU states. • The customs payable can be determined online using the TARIC (Integrated Tariff of the

European Communities) system. • Customs are not charged on investment goods if business operations have been

transferred in full to Germany.

about.me/akonig

Page 46: The German market for international startups

The labor market in Germany

Page 47: The German market for international startups

Flexible models of employment

Germany has different models of employment, providing investors

with flexible employment solutions - especially in the

starting phase of the business. Temporary employment agencies provide appropriate personnel at

short notice.

about.me/akonig

Page 48: The German market for international startups

The employment contract

A contract of employment setting out the terms and conditions of the employer-employee relationship is usually drawn up in writing (verbal agreement is also possible). • In principle, the contract can be formulated in any language. • However, a binding German version is advisable as German courts require a German

translation of any contract drawn up in another language in the event of any legal proceedings being instigated.

There is no legally fixed form for a contract of employment. Nonetheless, it is highly advisable to define certain points, such as:• Area of activity and general description of tasks• Date of contract inception and, in the case of fixed-term contracts, duration of the

agreement• Daily and/or weekly working hours• Probationary period• Remuneration• Holiday allowance• Declaration of the notice period• Declaration of confidentiality• If applicable, a ban on the employee working for a competitor for a two-year period after

leaving the company• Possible secondary occupations• Annual holidays• Penalty for breach of contract

about.me/akonig

Page 49: The German market for international startups

Fixed term contracts

Standard employment contracts are not generally time restricted. They usually include a probation period of up to six months. • Companies are nonetheless free to offer fixed-term contracts. Such fixed-term contracts

automatically expire on a specific date. • A dismissal is not required to terminate this type of contract (un- less the contract needs

to be terminated before expiring). It is for the employer to decide whether to renew the contract or not. 

• Fixed-term contracts are limited to a maximum of two years. A fixed-term contract may be extended up to three times provided the total duration of contract does not exceed the maximum of two years.

• During the first four years of a company’s existence in Germany, employment contracts may be limited or extended several times up to a total duration of four years.

about.me/akonig

Page 50: The German market for international startups

Temporary employment

Temporary employment means that a company can hire staff without concluding an employment contract. • Instead, the company hires staff from a temporary employment agency by concluding a

service contract which regulates the conditions under which the employees are sent to the hiring company. 

• The employee is legally employed by the temporary employment agency, which means that the employee receives financial remuneration only from the temporary employment agency, as no contractual relationship exists between the hiring company and the employee.

• The hiring company pays a certain fee to the temporary employment agency as set out in the service contract. 

• The duration and the terms of termination of the service of the employee in the hiring company are not subject to labor regulations, but only set out in the service contract between the hiring company and temporary employment agency. 

• The general working conditions such as weekly working hours and wages are usually determined in collective agreements between unions and the respective employers’ associations of the temporary employment industry.

• These collective agreements provide flexible working hour models by using working hour accounts to adjust the demand of the hiring company and working time regulations.

about.me/akonig

Page 51: The German market for international startups

400 Euro jobs

Mini jobs are jobs with salaries below EUR 400 per month (also known as “400 Euro Jobs” or “short-term” jobs) or an employment period in which the employee works 50 days per year or less for the company. For mini-jobs with a salary below EUR 400 per month• employers pay 30.1 percent of the gross wage as social security contributions and flat

tax (composed of 13 percent health insurance, 15 percent pension insurance, 2 percent flat tax, and 0.1% percent sick pay contribution allocation).

• Employees are fully exempt from social security contributions (even if they hold another fully taxable employment position).

• For mini jobs with less than 50 working days per year, personal income tax has to be transferred to the tax authorities (subject to a number of conditions including whether 25 percent flat tax or individual tax rate of employee is payable).

• No social security contributions must be paid by both employer and employee.

“Midi” jobs (or “low wage jobs”) are jobs that pay between EUR 400.01 and EUR 800 per month. • They are subject to reduced employee social security contributions. • Employers are subject to the normal social security contributions of around 21 percent

of the gross wage, which represents a lower rate than the general tax for mini jobs.

about.me/akonig

Page 52: The German market for international startups

Employee representation

A works council may be established in companies with five or more employees.• Works councils are in-house committees representing the interests of the employees

within a company. • Their activities range from information and non-binding consultation rights to exercising

co-determination rights in organizational and social affairs. • Rights regarding the formation of works councils are governed by the German Works

Council Constitution Act (Betriebsverfassungsgesetz). Accordingly, works councils can be formed by the employees through election (no quorum required)

Functions and Rights of Works Councils• Negotiate rules pertaining to organizational and social issues, and must be consulted

regarding specific personnel decisions. • end and beginning of daily working hours (not the duration as such), vacation schedules• internal behavioral rules• safety issues (accident prevention), surveillance installations• internal social facilities (e.g. cantines)• general company wage structures (but not individual salaries)

about.me/akonig

Page 53: The German market for international startups

Employment conditions

Employee pay can be negotiated freely unless a minimum wage applies. German law does not prescribe a statutory minimum wage for most professions. Minimum wage agreements have only been established in the following industries:• General construction trade• Roofing/tiling• Painting and varnishing• Building cleaners• Electricians• Special mining work• Laundry services for commercial customers• Waste management (including street cleaning and winter road maintenance)• Carer and nursing assistance Working hours are very flexible in Germany.• Under German labor law (Arbeitsrecht) employees are allowed to work 48 hours per

week. • Saturday is considered to be a normal working day, whereas Sunday is widely

considered a day off. • A total of 60 hours per week (or ten hours a day over six days) is possible under certain

circumstances. • Extra hours worked must be compensated through the allocation of additional time off. • Employees are entitled to a break of 30 minutes when working between six and nine

working hours per day. Employees are entitled to a 45 minute break where more than nine hours a day are worked.

about.me/akonig

Page 54: The German market for international startups

Vacations, Holidays, Leaves

Vacation and Public Holidays• Full-time employees (meaning employees working more than six months within one

calendar year) working six days per week are entitled to a minimum of 24 paid vacation days (the equivalent of four weeks) per year.

• Full-time employees working five days per week are entitled to a minimum of 20 days per year. 

• Pro-rated period of paid vacation when working for less than six months within one calendar year

 Employees are obliged to inform their employer about any sickness requiring an absence from work and the expected duration of this absence as soon as possible  • Where the period of sick leave exceeds three days, employees are obliged to have a

general practitioner provide proof of their incapacity to work. Notwithstanding this, employers may also request medical certification of an employee’s incapacity to work beginning on the first day of sick leave. 

• Employees are entitled to sick pay amounting to 100 percent of the normal salary until the time of recovery, though limited to a maximum of six weeks.

 Employees should inform the employer of any pregnancy and the expected delivery date as early as possible. • A maternity protection period starts six weeks before the expected birth date and ends

eight weeks after delivery.• Pregnant employees are only allowed to work during this time if a doctor certifies that

the work will not be harmful to the health of the mother and child. • During the maternity protection period, pregnant employees are entitled to the average

sum of their wages for the three months period prior to the pregnancy paid by the employee’s public health insurance and the employer.

about.me/akonig

Page 55: The German market for international startups

Termination of employment

A contract of employment can be terminated by the employer or the employee. Dismissals require written form and both parties have to observe the statutory notification periods.• Dismissal for personal reasons• Dismissal for conduct-related reasons• Dismissal for business reasons

The Employment Protection Act only applies to companies with a staff of more than ten employees and with respect to continuous employment relationships of more than six months in the same company. If these conditions do not apply, employers generally have an unfettered right to terminate employment contracts within statutory notice periods.• An employee must submit a notice with a minimum notice period of one month, effective

either on the 15th or end of the month. • For the employer, the minimum notice period depends on the duration of employment.

After the probationary period of a new employment contract has ended, the initial notice period is four weeks.

• This increases to seven months after 20 years of job tenure in the same company. • Individual notice periods can be agreed upon, but these must comply with minimum

statutory notice period requirements. • Every notice of termination must always be issued in writing - notice of termination in

electronic form is insufficient.

about.me/akonig

Page 56: The German market for international startups

Startup resources & events

Page 57: The German market for international startups

Members of the German startup association

https://germanstartups.org/

about.me/akonig

Page 58: The German market for international startups

Berlin about.me/akonig

Network meetings* Berlin 2.0: exchange for founding directors and CTOs * Echtzeit Berlin: network meeting for founders and investors * Online Marketing Lounge: network meeting for Internet branches (several times per year)* Open Coffee Club: open exchange for web scene enthusiasts* likemind: coffee and conversation (monthly)

Events* Battle of the Startup Bands: contest for bands from startups* BerlinWebWeek: festival for the digital economy (yearly)* Entrepreneurship Summit: event for founders* Heureka! Conference: conference for ideas, internet businesses and future online trends* Infomare!: forum for information professionals* Startup Camp Berlin: BarCamp with workshops and conference* next Berlin: conference on the topic “digital economy” (yearly)* re:publica: conference on blogs, social media and digital society (yearly)* Twittwoch Berlin: social media from and for enterprises* Mini Seedcamp Berlin: Seminar for startups (yearly)* MLOVE Confestival: for CEOs, innovators and entrepreneurs* OMCap: online marketing conference with network party (yearly)

Business angels* Business Angel Club BerlinIncubators* Rocket Internet (Team)* Springstar (Team)* Team Europe (Team)* FounderHub (Team)* FoundersLink (Team)* The Founder Institute* Rheingau Founders (Team)* YouIsNow* social impact enterprise (for social startups)

Venture capitalists* bmp (Team)* Earlybird (Team)* estag (Team)* Hasso Plattner Ventures (Team)* IBB Beteiligungsgesellschaft (Team)* makeastartup.com* Point Nine Capital (Team)* Ventegis Capital (Team)

Page 59: The German market for international startups

Berlin about.me/akonig

Coworking* Coworking in Berlin (information)* Betahaus* ClubOffice* co.up* social impact lab* Studio 70* MobileSuite* Weserland

Startup jobs* i-potentials: agency connecting digital natives and Net-related positions* Berlin Startup Jobs: marketplace for startup jobs* Startup-Jobs: deutsche-startups.de’s own job board

Professorships in Entrepreneurship studies* TU Berlin: Entrepreneurship and Innovations Management* FU Berlin (Faltin): Departmental Entrepreneurship* HWR Berlin: Entrepreneurship and Business Management* Humboldt Uni: Institute for Entrepreneurship / Innovations management

Information* Map of Berlin startups

Established and successful startups* betterplace: donations platform* brands4friends: shopping community* DaWanda: marketplace for unique and rare items* GameDuell: games platform* ImmobilienScout24: real estate marketplace* rebuy (formerly trade-a-game): re-commerce platform* Soundcloud: social platform for original music* zanox: advertising network* Zalando: online shop for shoes and fashion

Blogs* Martinsinner.com: blog by Martin Sinner, founder of idealo* http://startup-berlin.com/* http://www.morgenpost.de/berlin-aktuell/startups/* http://www.berlin.de/special/computer-und-handy/internet/startups/* http://www.berlinstartup.de/

Regional funding programs* Berlin Start (IBB)* BHT founder’s scholarship (Beuth Technical College, Berlin)* ProFIT (IBB)* Technology Coaching Center (IBB)Event information* Berlin Web Week* StartupDigest Berlin* Entrepreneurs Club Berlin

Page 60: The German market for international startups

Munich about.me/akonig

Networking* Echtzeit München: network meeting for founders and investors * MunichBeta Meetup Group: network meeting for entrepreneurs* Open Coffee Club München: open exchange for web scene * START Speaker Series: entrepreneur lectures + networking at the Technical University* Webmontag: participatory event on Mondays for Web 2.0 fans

Events* Barcamp: “ad hoc non-conference” for Web enthusiasts (annual)* Ecommerce Conference: conference for e-commerce directors and shop owners (annual)* hackanoon: event for developers* IdeenJam!: event for students and entrepreneurs* Isarnetz – Münchner Webwoche: Event for everything Internet * Munich Venture Summit: Event for founders, young company-owners and investors (annual)* Online Marketing Forum: conference for online-marketing decision-makers (annual)* Search Marketing Expo (SMX): conference on SEM und SEO* StartUp Weekend: three-day, interactive workshop

Calendars* Munich StartupDigest

Business angels* Mark Gazecki* Urs Keller* BA-Network: Munich Network

Incubators* VentureStars (Team)* Wayra

Venture capitalists* Acton Capital Partners (Team)* Astutia (Team)* XAnge (Team)* Doughty Hanson (Team)* Earlybird (Team)* European Founders (Team)* Holtzbrinck Ventures (Team)* Munich Venture Partners (Team)* Rocket Internet (Team)* Seventure (Team)* Target Partners (Team)* Wellington Partners (Team)

Page 61: The German market for international startups

Munich about.me/akonig

Coworking* b-neun (entrepreneur center)* combinat56* Coworking Munich* gate Garching (entrepreneur center)* ShareVenue* Worklabs

Startup jobs* Startup-Jobs: deutsche-startups.de’s own job board* STARTexchange: internship board for startups und students

Studies/professorships for entrepreneurship* TU München: Entrepreneurial Finance* TU München: Business Administration – Entrepreneurial Behavior* LMU: Innovation Research, Technology Management, Entrepreneurship* Hochschule München: Innovation, Leadership, Entrepreneurship* CDTM: Technology Management, Entrepreneurship

Established und successful startups* affilinet: affiliate network* Amiando: online event-management software* Deal United: pay service* Experteer: job board for high-paying jobs* Lokalisten: social network* MegaZebra: game developers for social games* mytheresa.com: online shop for luxurious fashion* Scout24: owner of various online marketplaces* Stylight: fashion platform* Kisi

Blogs* MunichBeta: blog from Matthias Wiemann on the Munich startup scene* Medienblog München: blog from Christian Hubel on entrepreneurship and the startup scene

Regional funding programs* evobis: institution for founding, funding und growth* GründerRegio M: funding for recent college graduates starting a company* StartUp München: event series for prospective founders* Münchner Existenzgründungs-Büro (MEB): contact point for entrepreneurs

Page 62: The German market for international startups

Frankfurt about.me/akonig

Events* Mainzer Gruendertreff* Lean Startup Circle* WMfra* Startup weekend* http://frankfurtmedtech.de

Calendar* Frankfurt* Rhein Main

Business angels* Business Angels Frankfurt

Incubators* Jumpp* Wayra* Goethe Unibator* Gruendertaxi

Venture capitalists* Cornerstone Capital* EVP Capital* MBG* Ceres* Halder* Nanostart* Deutsche Beteiligungs AG* 3i* Ares* BDW* CBG Commerz* Cinven* DIH* Doughty Hanson* ECM* Future Capital* Pegasus

Page 63: The German market for international startups

Frankfurt about.me/akonig

Coworking* ClubOffice* Coworking Rhein Main* Naxos* Meet n’ Work* SBC* coWo* Start FFM* Die Zentrale

Startup jobs* Startup-Jobs: deutsche-startups.de’s own job board* Rhein Main: regional startup job board

Studies/professorships for entrepreneurship* Goethe University* FH FFM* Bankakademie* Kompass* Frappe

Established und successful startups* JC Analytics* Spieletips* S2S* Etecture* Firma.de* CLU* TwentyFeet

Blogs* StartingUp* Best Practices* Frankfurt Startups

Regional funding programs* Fur Gruender* Gruender Fonds* Kiedrich Forum

Page 64: The German market for international startups

Networking* active lounge: networking & clubbing* Echtzeit Hamburg: network meeting for entrepreneurs and investors (twice a year)* Gamecity Treff: network meeting for the games branch (bimonthly)* Open Coffee Club: open exchange for Web scene enthusiasts (monthly)* Gründer-Barbecue: barbecue and networking for entrepreneurs at Hanse Ventures* Digital Media Women: network for women with careers in Web branches* StartUp-Roundtable (three times a year)* eBizz Talk: event for Internet professionals and startup founders (quarterly)* openDeck der onlineKapitäne: “network classic with tradition”* Webmontag: participatory event on Mondays for Web 2.0 fans (monthly/bimonthly)

Startup jobs* Startup-Jobs: deutsche-startups’ own jobs board* Hamburg Startups: job offers in Hamburg

Hamburg about.me/akonig

Events* Barcamp: “ad hoc non-conference” for Web enthusiasts (yearly)* Digital Marketing & Media Summit: event for social media enthusiasts and experts (yearly)* Developer Conference Hamburg: networking event for Web developers* Home Party Hamburg: online marketing event (several times a year)* Online Marketing Rockstars: conference on online marketing options and trends (yearly)* Online Marketing Forum: conference for online-marketing decision-makers* Online Marketing Camp: event on the techniques and backgrounds of online marketing* scoopcamp: journalists’ event fot the online world* Venture Lounge: exclusive event for entrepreneurs and investors with open pitchhttp://hamburg.startupweekend.org/

Professuren “Entrepreneurship”* UHH: Entrepreneurship and Innovation

Page 65: The German market for international startups

Regional funding programs* Hamburger Existenzgründungs Program (hep): funding for technology oriented/innovative startups from Hamburg colleges* Innovationsstarter Hamburg: funding for innovative new businesses Coworking* 165euro* betahaus* Werkheim

Established and successful startups* Bigpoint: game creator for browser games* Jimdo: building block approach to creating websites* Scoyo: educational games for children* smatch.com: product search* Statista: statistics services* Qype: ratings platform* Xing: business network* Tolingo: translation services

Hamburg about.me/akonig

Business Angels* Jens Kunath* Stephan Uhrenbacher* Wolfram Grätz* Frederik Vollert

Incubators* Digital Pioneers (Team)* Dynport GmbH (Team)* HackFwd (Team)* Hanse Ventures (Team)

Venture capitalists* BTG Beteiligungsgesellschaft Hamburg* e.ventures (Team)* CatCap (Team)* Shortcut Ventures (Team)* Innovationsstarter Fonds Hamburg* iVentureCapital* Neuhaus Partners* TheMediaLab (Team)* http://www.fundersclub.de/

Page 66: The German market for international startups

http://nextberlin.eu/

http://www.cebit.de/home

http://piratesummit.com/en

http://dld-conference.com/

National startup events about.me/akonig

http://www.gruenderwoche.de/en/index.php

http://www.junge-unternehmer.eu/

http://www.bvdw.org/

http://www.mlove.com/

Page 67: The German market for international startups

• German startup landscape (in German) https://deutschestartups.org/wp-content/uploads/2013/07/DSM2013_Praesentation.pdf

• Startup jobs http://www.startupcareer.de/• Investment resources http

://www.gtai.de/GTAI/Navigation/EN/Invest/Industries/smarter-business.html• Business guide http://www.howtogermany.com/pages/busi-setup.html• European perspective on Germany http

://europa.eu/youreurope/business/starting-business/setting-up/germany/• Startup guide http://www.doingbusiness.org/data/exploreeconomies/germany/starting-a-business• Startup guide http

://www.bund.de/EN/Working-In-Germany/Setting-up-a-Business/Setting-up-a-Business_node.html• Germany facts and figures http://www.gtai.de/GTAI/Content/EN/Invest/_

SharedDocs/Downloads/GTAI/Brochures/Germany/facts-figures-investors-basics-2013.pdf• Guide to Germany http://www.make-it-in-germany.com/en/• German startup news https://deutschestartups.org/• German startup news http://www.gruenderszene.de/• German startup news http://www.deutsche-startups.de/• Investors http://www.germaninnovation.org/resources/entrepreneurship-funding• Investors http://www.fuer-gruender.de/kapital/eigenkapital/inkubator/• Investors http://www.deutsche-startups.de/2012/03/26/neue-kapitalgeber-und-inkubatoren/• Investors http://www.gruenderszene.de/finanzen/inkubatoren-deutschland• Investors http://venturecapital.de/• Investors http://www.bvkap.de/privateequity.php/cat/36/aid/461/title/Venture_Capital___Wagniskapital• Investors http://www.vc-magazin.de/

Links & Resources about.me/akonig

Page 68: The German market for international startups

Thank you for attending – you can view the slides and contact me @

about.me/akonig