The figures speak for themselves: the number of start-ups in Düsseldorf has doubled since 2015. There are currently over 300 newly founded companies registered in Düsseldorf, and the trend is rising sharply. Düsseldorf is thus emerging as a serious rival to Berlin as a location for start-ups: According to figures published by the management consultancy KPMG in the Berlin-based Tagesspiegel as part of its Start-up Monitor, 19 per cent of all young companies covered by the survey are now based in North Rhine-Westphalia. By contrast, only 15.8 per cent of the companies participating in the survey are based in Berlin.
Düsseldorf: The hub of the start-up scene
According to a recent report in the *Westdeutsche Zeitung*, Düsseldorf is the hub of this highly encouraging development for North Rhine-Westphalia. Peer Schulz was born in Düsseldorf and deliberately chose his home city as the registered office for his start-up ‘Helpcheck’, which enforces claims arising from contractual rights of withdrawal on behalf of customers: “Düsseldorf has proved to be an entirely positive location for us. Many of the law firms we work with are based here. This results in short lines of communication and synergies that would be unimaginable elsewhere. But you can also see that an incredible dynamism is currently developing in Düsseldorf – which we naturally welcome very much.”
Property market reflects the trend
This growth is also reflected in the very robust demand in the office property market. Dr André Helf, CEO of the COLLECTION Business Center Group, assesses the situation: “The vacancy rate in Düsseldorf is extremely low. This is driving up prices and putting a strain on start-ups’ capital, as they often still have to enter into long-term commercial tenancy agreements when looking for premises. We can be of great help to any start-up: At our two business centres in Düsseldorf – in the listed Dreischeibenhaus in the city centre and in the Three-George building on Kaiserswerther Straße – we naturally offer short-term lets as usual, without forcing customers into tenancy agreements that tie up their capital. And this is the case even if the start-ups no longer require any space at all. We know that flexibility is a top priority for founders – which is why, with us, a start-up can also increase or decrease the size of its premises and the resulting rents at short notice, depending on its needs and in line with its business development. We’ve had very good experiences with start-ups so far and are, of course, delighted when we can help every start-up get off to a successful start.”
The “German start-up scene” in North Rhine-Westphalia’s capital is booming – Peer Schulz sees this as a great opportunity: “In my opinion, there’s never been a better time to set up a business than there is today,” he says in an interview with the online portal startup-city.de, “In Düsseldorf in particular, there are numerous events and gatherings for those interested in starting a business and for new entrepreneurs.”
Torsten Jensen, the NRW spokesperson for the German Startups Association, believes that the trend has only just begun – in an interview conducted a few weeks ago with the Düsseldorf daily newspaper Rheinische Post, he highlights the region’s locational advantages: “We believe that NRW definitely still has room for growth. It’s an extremely economically strong region – and everything is close together. You can practically cycle from one company to the next here.”
NRW’s Digital Minister Andreas Pinkwart (FDP) is also supporting this development: “NRW is on its way to becoming Germany’s number one start-up hub. And the State Chancellery in Düsseldorf will continue to remove bureaucratic barriers. Electronic business registration is already available,” he told the Rheinische Post. Setting up a start-up is therefore becoming increasingly easier.
However, alongside Düsseldorf, the city of Cologne – with its population in the millions – is also seeing a sharp rise in the number of new start-ups. There, too, the commercial property market is extremely overheated. Cologne has virtually no vacant premises. This makes the situation particularly difficult for start-ups. Dr Helf is therefore pleased to be able to provide some relief in the cathedral city soon: “We are delighted that we will be able to open our new COLLECTION Business Center in the Wallarkaden in 2019 – this will be a fantastic opportunity for any start-up to rent office space with the lowest possible financial risk.”
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