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Venture Capital in Berlin

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Venture Capital (VC) is the key to success for any start-up looking to turn an innovative idea into reality. VC firms provide capital, resources, strategic assistance, networks and much more to start-ups at the critical early stages. In the past, Berlin and Germany as a nation has lagged behind its EU and global counterparts partly as a result of the nation’s culture of avoiding risk. Business in Germany tends to move slowly and in a prudent fashion which doesn’t bode well for start-ups. In 2013, VC investments into Berlin start-ups totaled just €133 million.

 

A snapshot of VC funding in 2018 paints a very different picture. VC funding has skyrocketed in the last few years with future projections conveying a similar trajectory. In 2018, a total of €4.6 billion was invested in German start-ups, a 7% increase on 2017. Berlin took a significant share of this VC funding with an incredible €2.67 billion flowing to start-ups in the capital, a 2000% increase on 2013. This figure accounts for 59% of all VC capital invested in Germany and is an increase of 6% from 2017. Berlin start-ups account for 4 out the top 5 largest financing amounts for start-ups in the nation.

 

Where Was the Venture Capital Invested in Berlin?

E-Commerce start-ups have always attracted the highest level of VC investments in Berlin and 2018 followed this trend. A total of €1.64 billion was invested in German E-Commerce start-ups with Berlin start-ups collecting a healthy 67% of this figure. E-Commerce platform Auto1 Group headquartered in Berlin topped the list receiving an influx of €460 million in 2018. An interesting emerging trend is the rise of VC funding for Software and Analytic start-ups. These innovative start-ups that comprise of innovative tech such as SaaS, blockchain, virtual reality, cloud, cyber security and data analytics raised a nationwide total of €670 million with €341 million funneling into Berlin. This 56% increase from 2017 portrays the increasing trust and interest in new, innovative tech start-ups. SaaS accounted for €304 million, almost half of the VC funding. FinTech start-ups also experienced healthy growth with €456 million flowing to FinTech start-ups in Berlin.

What Caused this Significant Increase in Venture Capital Funding?

German VC firms operate on a prudent basis which is in line with German business culture. In the last few years, many large international VC firms such as Atomico, Balderton Capital, Partech and Mangrove have begun to heavily invest in German start-ups with Berlin attracting most of the attention and funding. This flow of international VC funding has broken the cultural barrier of risk-adverse German VC firms. Furthermore, German VC firms have seen this influx of competition and the rewards experienced by international VC firms causing them to question their prudent methods.

 

The future is bright for start-ups in Berlin as forecasts predict the influx of VC capital to continue to rise year on year. 

Posted by Adam Dunne on 11 March 2019

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Start-up vs Large Corporation

Start-up vs Large Corporation

Join a start-up or a large corporation? This polarizing question has no clear-cut answer but is consistently debated in the software development world. Both start-ups and established corporations come with their own individual set of advantages and disadvantages. There is no black and white answer, it all depends on what you value most. Method vs Madness This is one of the most distinctive differences between the two. In a large corporation, there are clear and well-established processes in place that dictate everything. All tasks are divided into work items and Gantt charts and then equally spread across the team. Everyone fulfils their specialised job role with changes to the process only occurring with pre-emptive planning. Start-ups on the other hand operate on an ad-hoc, needs must basis. Whatever is needed at that time or in the very near future is prioritised. Tasks are not divided equally among the team, nor are they debated over numerous meetings. Work processes and tasks can change very quickly as the start-up moves into a different direction or it loses investment or something else entirely. Corporations’ organised and clearly defined processes remove a lot of ambiguity and ensure that developers are not overworked. However, it often stifles work productivity as time is lost through constant meetings and ‘going through the motions’ of bureaucracy. In a start-up, developers are afforded full responsibility of their work which is very attractive to many. You are likely to be your own manager removing the time-consuming meetings and bureaucratic processes. However, this does come at a cost. If something goes wrong, it is on you to fix it. It doesn’t matter if its 5pm on a Friday or if you already have an unmanageable to-do list, it is up to you to fix it. Professional Development & Career Advancement This is a grey area as both start-ups and large corporations offer great paths to professional development and career advancement but in very different ways. In a large corporation, you will learn valuable skills such as navigating large-scale projects, how to effectively integrate teams, how to work with mature code and the inner workings of large organisations. In addition, you will have a lot of support from developers within the organisation and from extensive training usually paid for and provided by your company. There are clear paths to career advancement on a merit-basis. Those who have clearly demonstrated that they are the best for the job or promotion, tend to get it. On the flip side, start-ups give you the chance to gain working experience in many, often cutting-edge technologies. You will likely have the opportunity to make important architecture yourself while working in different roles on different parts of projects. The support system will however naturally be lower. You will likely work with a select few very smart individuals, but Google will be your best friend for solving issues. Career advancement can be very quick as you will grow as the start-up grows. The earlier you get in, the higher you will advance all going to plan. If you excel in an autonomous role where you dictate how and what work is done, a start-up will work for you. If you excel in a position with clear direction and a solid support system, a large corporation is for you. Pay & Compensation This tends to be the deal breaker for many. Naturally, large corporations can offer a lot in terms of salary and overall remuneration packages. Heavy hitters such as Google, Facebook and Amazon often offer above market salaries with incredible benefit packages to lure in the best talent in the market. Start-ups cannot afford to match the big corporate outfits. You are likely to do the job of three people for the price of less than one in the early days. You will have to acclimatise to a lower standard of living, however there is always the chance that it could pay off in the future if the start-up is a success. Only you will know which one is for you. Start-ups are risky and require a lot of hard-work but they can pay off in a big way. Large corporations are safe, slow moving but can also offer a lot. It all comes down to what you value most and your career aspirations.
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Soft Skills Needed for Career Progression

Soft Skills Needed for Career Progression

Are you looking to progress in your career? Soft skills may be the key to propelling you to success. According to the Deloitte Human Capital Trends report, 90% of executives rate soft skills as a priority for their employees. You may have every technical skill mastered for your role, but this amounts to little if you don’t work well with others. The modern workplace requires consistent teamwork, collaboration and communication with little room for those who don’t work well with others. Unlike hard skills, which can be easily measured and quantified, soft skills are intangible and difficult to quantify. Soft skills are personable attributes, usually linked to how you work and interact with others. Soft skills are necessary for your success and your career development as they help facilitate human connections and relationships. Effective soft skills make you visible for the right reasons, opening up more career-related opportunities such as a promotion to team lead or management. According to LinkedIn data, the top five most in-demand soft skills in the tech industry are; Creativity Persuasion Collaboration Adaptability Time Management Creativity: Creative employees are always highly sought after. You may think that you’re not creative but there are steps you can follow. Creativity in the workplace is about thinking or doing something slightly different. Approach each task in work with the attitude that the current method is only temporary until it is replaced by something better. Discuss your ideas with people, incorporate their feedback and above all else, don’t be afraid to fail. Put yourself and your ideas out there, failure is necessary for success. Persuasion: Being able to persuade others that your idea or way of doing something is no easy task but it is necessary to achieve your goals and objectives. There are many ways to persuade people, some more shady than others such as nagging and coercion. Successful persuaders get others to buy into their idea. You need to understand how your audience thinks, what makes them tick. Practicing active listening and empathy are excellent ways to discover how someone thinks. You also need to really believe in your idea and communicate it well, don’t be afraid to receive some negative feedback, it is part of the process. Collaboration: Collaboration is essential in work. Within the tech industry, it is the norm to collaborate across departments and teams due to the nature of the work. Building effective collaboration is more than teamwork, it means building trust. It is important to communicate clearly about everyone’s role in the process and agree upon it. It is important to place the overall goal ahead of your personal goals or recognition, true collaboration is about the overall outcome. Recognising others for their work or contribution and offering credit is a great way to build collaboration. Adaptability: Adaptability is one of the most sought-after qualities in an employee as advances in technology continue to accelerate at an increasing rate. The ability to modify one’s thinking, beliefs and behaviours to better suit the current or future environment is becoming essential in the modern digital age. It is almost impossible for organisations to keep up with the rate of change, adaptable employees are the key to future-proofing the business. To be adaptable in the workplace, you need to be open to new projects outside your comfort zone, accept and embrace that your role may change to better suit market conditions and convey calmness and confidence when you are faced with a sudden new dilemma. Time Management: Time is a great equaliser, everyone has the same number of hours in the day and learning how to effectively utilise your time is the key to success. Setting goals and prioritising each goal is a great way to manage time. Before completing any task, assess how urgent the priority is and how much of your time does the task warrant. Consistent planning is an essential element of time management, keep control of your daily, weekly and monthly workflow. For more tips on time management – read this blog (Insert link: https://www.sigmarrecruitment.eu/blog/2019/08/how-to-improve-productivity-at-work).
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Cost of Living in Berlin

Cost of Living in Berlin

It’s not breaking news that the cost of living in Berlin is rising as the city has transformed from “poor, but sexy” to the one of the hottest start-up locations in Europe. The phrase cost of living is subjective as it means different things to different people. For the purpose of this blog, I am going to focus on the costs of everyday life such as rent, food and travel. Rent Berlin, once famous for its cheap rental prices is now catching up to its EU counterparts. Rental prices are fluctuating so much between neighbourhoods that it is hard to pin down an average cost, but the following map showcases the price in each area of Berlin for a two-bedroom apartment of 70m squared (without bills and utility costs). Hotspots such as Mitte, Kreuzberg, Friedrichshain and Charlottenburg are very expensive areas to live in, however there are still affordable areas within the city limits. Furthermore, Berlin operates a highly efficient and affordable public transportation system enabling people to live outside of the city centre without having to face a daunting commute to work every day. A full breakdown of the different neighbourhoods is available here. Although rents in Berlin have risen dramatically, they are still very affordable compared to other capital cities such as London and Paris. Food & Drink Food and drink is very affordable in Berlin whether you opt to dine in or out. There are plenty of reputable discount grocery shops, Lidl, Aldi, Netto and Penny to name a few. There is also an abundance of higher end grocers such as Rewe, Edeka or Karstadt, and organic shops where prices are higher but still affordable. The city is also littered with a number of fantastic food markets where you can get some fresh veg for the week for €15 or so. It’s very easy to find cheap beer and wine in Berlin with a Späti (convenience store) at every turn. You can pick up a can of beer for around 80 cents and a bottle of wine from €4. If you decide to eat out, it won’t set you back too much. A basic lunch with a drink within the business districts will cost you between €7-€12 and even less if you opt to indulge in one of the many Turkish kebab shops that populate the city. A mid-range restaurant meal for two (3 courses) will cost around €50 but of course you can decide to spend more or less depending on your choice of meal. A domestic German beer (500ml) in a pub costs around €3.30 with a nice cocktail setting you back around €8. If you’re looking for a caffeine hit to get you through your day, a standard Americano is around €2.20 with cappuccinos/lattes costing approx. €3.30. Travel Berlin is a very cycle friendly city thanks to its (mostly) good cycling infrastructure and flat terrain. However, the weather can be less than friendly during Winter months so public transport may be your only option. The U-Bahn, S-Bahn and bus system all use the same tickets which is handy if you’re buying a longer pass. AB tickets cover the entire city area and Tegel airport and prices are: Single trip €2.80 Four trip single tickets €9 Day Ticket €7 7-day ticket €30 Monthly ticket €81 Overall, Berlin is a very affordable city compared to its EU counterparts. The value for money you get in Berlin is unrivalled by many other cities as its such a vibrant, exciting city located in the heart of Europe.
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Berlin Salary Guide

Berlin Salary Guide

According to EY’s Start-up Barometer, €4.3 billion was invested in German start-ups in 2017 alone with 59% of the VC capital funnelling to the capital city. Software developers are in high demand in Berlin with salaries and total remuneration packages rising year on year. On average Frontend developers earn 48k with 0-4 years’ experience and 63k with 4+ years’ experience. Back End developers earn approximately 53k with 0-4 years’ experience and 62k with over 4 years’ experience. Full Stack developers earn on average 53k with 0-4 years’ experience and 65k with over 4 years’ experience. DevOps engineers are payed 57k with 0-4 years’ experience and 65k with over 4 years’ experience. Data engineers are amongst the highest paid commanding a salary of 55k with 0-4 years’ experience and 70k with 4 years’ experience. Similarly, data scientists earn approximately 557k with 0-4 years’ experience and 70k with over 4 years’ experience.