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To all the US internet startups thinking about going to Europe: Start off in Germany

March 27, 2009

If you are a US internet startup and are thinking about entering the European market you are likely to consider the UK as the starting point in the old world. Think twice: Germany might be the better choice. Why is that? Let´s have a look at the facts:

Market size (regarding population):

UK: 60 Mio vs. Germany/Austria/Schwitzerland (all German speaking, known as the DACH region): 98 Mio

Community

There´s is a very vivid internet professionals community in Germany, especially in Berlin, Hamburg and Munich. Whether you are looking for staff, cooperation partners or mavens who promote your business, they are all there.

Costs

The rent for office space in - let´s say - Berlin is a bargain compared to the high end prices in the London city area. As is the level of prices regarding living expenses in general. Even experienced staff costs you at lot less in Germany.

Currency

In almost every European country you can pay with the Euro. Not so in the UK. Consider this if your business is selling products.

Geolocation

If you want to set up a European headquarter, Germany is the place to be. It is centrally located in Europe so you have quick access to all other EU countries.

Difference

As a great part of the US startups who try to conquer Europe start off in the UK, it will provide your company an outstanding position if you don´t follow the crowd. Press coverage will be easier to gain, the attention of the internet community in Germany easier to catch.

Traps and Hurdles

Don´t assume to conquer Europe as a whole. Every country has it´s own regional distinctions. Whether you start from the UK or from Germany: You have to work yourself through the other countries one by one. Of course, this sounds not very encouraging at  first. But be assured: If you do take on the challange, your competitors will have a hard time catching up to you.

So, see you in Germany soon.

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Written by tworzyk · Filed Under Blog, Startups ·