Paris beats Berlin in investments for startups
According to a recent study by the consulting firm Ernst & Young, the French capital managed to raise investments of 2,200 million euros, over Berlin, where they achieved 2,000 million euros
A recent report by Ernst & Young on investment funds for emerging companies concluded that the German capital gave the French capital its advantage in this segment.
The study indicate that startups from Paris managed to attract investments of 2,200 million euros (about 2,450 million dollars) during the first half of 2019 and exceeded those of Berlin, which raised 2,000 million euros.
Regarding the number of financing rounds and agreements, Paris positioned itself ahead of Berlin, the first with 230 and the second with 129. “France decided to give absolute priority to the emerging business sector,” said Peter Lennartz, partner of EY, and added that strong support for the creation of companies in France is taking effect.
Lennartz added that the French president, Emmanuel Macron, aims to make France a European leader in startup sites, and for this he tries to reduce bureaucratic obstacles for young entrepreneurs as well as facilitate contact between investors and company founders.
Emerging companies depend on investors for their expansion, since they usually do not obtain benefits at the beginning. Large companies and financial funds invest venture capital in promising companies with the hope that their business ideas will succeed and provide them with opulent benefits.
However, London remains the first place for startups in Europe. The founders of emerging companies raised € 5.7 billion in the first half of the year, despite the uncertainties surrounding the United Kingdom’s departure from the European Union, the so-called Brexit. The British capital was also clearly ahead of Paris and Berlin in terms of the number of agreements reached, with 323.
Source: dpa
