Insights | Look at This City! Berlin’s Fresh Start Between Deep Tech and the Asia Bridge

Berlin was once Europe’s undisputed startup capital – creative, affordable, international. But the pandemic marked a turning point. Since then, startup momentum has slowed, and the ecosystem has proven more fragile than it seemed.

The crisis disrupted capital flows, drove away talent, and overwhelmed support structures. On top of that came the fallout of the war in Ukraine and global refugee movements – many of Berlin’s infrastructures are at capacity: administration, housing, education. Founding a startup in Berlin today means entering an ambitious, but often overstretched environment.

And Berlin is falling behind. While cities like Munich, Hamburg, or Heidelberg score with focused Deep Tech strategies, Berlin is only slowly regaining ground. According to the German Startup Association, 498 startups were founded in Berlin in 2024 – fewer than in Bavaria. In terms of startups per capita, Berlin now ranks third – behind Heidelberg and Munich. University-linked ecosystems are gaining traction, while Berlin lags: only 46% of local startups receive support from universities, compared to a national average of 56%.

Still, Berlin remains a central player – with global appeal, a diverse talent pool, and several unicorns. Growth is especially strong in software and AI. This is exactly where the new Berlin Startup Fund comes in: €10 million will be distributed to support 50 early-stage companies in Deep Tech and sustainability – a targeted response to the city’s innovation gap.

But Berlin’s challenges aren’t just internal. Structurally, it also lacks international connectivity. Take Korea, for example: the national trade agency KOTRA maintains offices in Frankfurt, Munich, and Hamburg – but not in Berlin. For years, the capital was seen as culturally and politically significant, yet economically hard to define. Major Korean firms are scarcely present, and Korean startups remain few and far between. For many Asian markets, Berlin simply wasn’t on the radar. While cities like Paris and Stockholm actively reached out to Asia, Berlin lacked clear points of contact, coherent strategies, and economic visibility. A former KOTRA office in Berlin was closed as early as 2012 as part of a global restructuring.

That’s now beginning to change. Delegations, visits to the IFA electronics fair, and early startup exchanges indicate that Berlin is regaining international visibility. The AsiaBerlin Summit, which emerged from the former Asia-Pacific Weeks, has evolved into a key platform linking Berlin’s startup ecosystem with Asia’s innovation hubs. It brings together Asian and European founders, investors, and policymakers. Berlin aspires to be an international tech hub – but institutionally, it still has ground to make up.

Berlin doesn’t have an image problem. Berlin has a connection problem. The city’s global visibility often far exceeds its institutional depth. Networks are missing, structures are thin, and Asian startups and agencies are still rare. The will to open up is there – but between international ambition and local reality, there’s still a long way to go.

The 2025 edition of the AsiaBerlin Summit will take place from November 24 to 28 – and registration is now open at asia.berlin.