Berlin

Berlin exists because walls fell—and because startups needed cheap rent. The divided city that symbolized Cold War partition reunified in 1990 and spent decades as a construction site rebuilding government and infrastructure. That reconstruction created opportunity: cheap real estate, cultural energy, and tolerance for experimentation attracted founders who couldn't afford Munich or London. By June 2024, 4,860 startups operated in Berlin; 498 new startups formed that year alone, more than Munich (203) and Hamburg (161) combined. Of Germany's 32 unicorns, 21 headquarter in Berlin. The city raised $3.42 billion in startup funding in 2024 (65% year-over-year growth), capturing 31% of Germany's total venture capital. Berlin secured 89% of Germany's 2024 fintech investment ($508 million). Startup Heatmap 2025 rated it Europe's second-most attractive startup city after London. This 3.6 million population (6.2 million metro) grew its economy 0.8% in 2024—outperforming Germany's national average. ICT drives growth: information and communication technology has been Berlin's most important sector for years. The Arcadis Sustainable Cities Index 2024 ranked Berlin eighth globally. Berlin demonstrates secondary succession: cleared ground (postwar destruction, Cold War division) colonized first by government, then culture, then startups, each wave building on infrastructure the previous created. By 2026, Berlin will remain Germany's founder capital—capturing disproportionate talent and capital through network effects that make alternatives feel provincial.