Lower Saxony is located in the central northwest of Germany and is geographically the second largest state in Germany. The most important hotspots in Lower Saxony are located in the metropolitan areas around the state capital Hannover and Braunschweig-Wolfsburg.
Even though the startup ecosystem is still very young, the numerous companies that are only a few years old are already enriching the market with tech-savvy and innovative ideas. A look at the business models of the startups in Lower Saxony shows that software-as-a-service business models, which are particularly growth-oriented, have not yet become widespread. However, a high proportion of startups in the region are active in the field of technology development and technical IT with great innovative power for the state.
5 key facts about the Lower Saxony startup ecosystem:
- Rise in startups: In Lower Saxony, the number of newly founded startups in 2020 increased by 19% compared to the previous year despite the crisis. According to the commercial register, the region around Hanover is particularly active in terms of founding new startups – of a total of 106 startups founded in Lower Saxony in 2020, 43 are located in the Hannover region. With the rising number of startups, the foundation has been laid for the further development of the ecosystem.
- Potential: With Hannover, the state has a hub with a high level of startup activity. In addition to Hannover, startup activity is also particularly pronounced in other university cities of the state such as Braunschweig, Oldenburg, Osnabrück and Göttingen, offering great opportunities for development.
- Innovation and responsibility: The proximity to universities and a strong technical orientation characterize the Lower Saxony ecosystem. 26.4% of the founders have studied business administration or economics, 18.2% computer science or mathematics and 26.4% engineering. In addition, every second startup in Lower Saxony assigns itself to the important Green Economy (50%) and feels committed to ecological sustainability.
- Strength in female founders:In Lower Saxony, the proportion of female founders is 20%, which is above the national average of 16%. This openness of the ecosystem is a positive signal on the important path of attracting even more women to start a business and thus leveraging this enormous potential.
- Challenge of growth: Startups in the region face difficulties in the areas of access to funding, staff and collaboration. Only 14% of all startups currently have more than 10 employees. However, around 89 % of the startups surveyed in Lower Saxony are planning to hire more new staff in the coming years and thus strengthen the growing ecosystem.
The ecosystem rating is at a medium to high level compared to other states. Hotspots such as Berlin and Munich are rated significantly better – as metropolitan areas, they have numerous advantages. If you want to learn more about the ecosystem in Lower Saxony, read the study here.