Demands on Germany's New Federal Government to Strengthen the Country as a Business Location - with Verena Pausder, Chairwoman of the Startup Association

About this episode

One week before the federal election, Verena Pausder, Chairwoman of the Startup Association and one of the most influential voices in Germany's startup scene, discusses the crucial decisions needed for Germany's future as an innovation hub.

As an author, entrepreneur, and investor, Pausder brings a unique perspective: she understands both the challenges founders face and the political levers that could make Germany competitive again. In this live episode of the Unicorn Bakery podcast, the most pressing pre-election questions are examined.

More Entrepreneurial Spirit for Germany

Germany urgently needs more entrepreneurial spirit, according to Pausder's central message. Germany as a business location can be strengthened through three pillars: more capital for growth companies, less bureaucracy, and stronger European cooperation. While other countries systematically expand their startup ecosystems, Germany is losing ground in international comparison.

The challenge lies not only in financing, but also in the fundamental attitude toward entrepreneurship. Germany must create a culture that rewards risk-taking and innovation instead of hampering it through excessive regulation.

Skills Shortage: Making Germany More Attractive

A core problem for German companies is the shortage of skilled workers. Pausder sees two crucial levers here: Germany must become more attractive for international talent. Digital visa procedures could significantly simplify immigration for qualified professionals. Even more important would be introducing a second official language - English.

Such measures would help not only startups, but the entire German economy. International talent brings not just skills, but also global networks and mindsets that are crucial for innovation.

Employee Participation: Progress and Challenges

Germany has made progress in employee participation over recent years, but significant catching up is still needed. German culture is often skeptical about company shares - a legacy that inhibits innovation.

Startups need flexible instruments to attract and retain talent. Employee participation isn't just a nice extra, but a decisive competitive factor in the battle for the best minds. Further legislative simplifications are necessary here.

The Capital Problem: WIN Initiative as a First Step

One of the biggest hurdles for German startups is the lack of growth financing. The government's WIN Initiative is a first step, but far from sufficient. Pausder makes it clear: while other countries pump billions into their startup ecosystems, Germany lags behind.

The problem intensifies with larger financing rounds. Many promising German startups emigrate or are acquired by foreign investors because domestic capital is lacking. Germany thus loses not only companies, but also the value creation of the future.

Digitization and Bureaucracy Reduction: "Startup in a Day"

Pausder calls for a real digitization offensive. "Startup in a Day" must not remain a buzzword, but become reality. Centralized digital processes could significantly simplify founding and operating companies.

German bureaucracy is a first-class innovation inhibitor. While other countries allow companies to be founded online in just a few hours, it takes weeks or months in Germany. This time is missing for founders to develop their business models.

European Vision: Stronger Together

Pausder's vision extends beyond Germany: a European capital market union and a true common internal market are essential for the future. Only together can Europe compete with the US and China.

"Made in Europe" should be not just a label, but a quality mark for innovation. However, this requires Europe-wide uniform standards and fewer national solo efforts.

Tax Relief and Business Succession

Two additional areas Pausder addresses are tax relief for employees and business succession. Germany must become more attractive for workers - including from a tax perspective. At the same time, a wave of business successions is approaching that must be politically supported.

Conclusion: Act Now

Pausder's message is clear: Germany still has the chance to survive as an innovation hub. But time is pressing. The next federal government must make bold decisions and finally set the course for an entrepreneurial future.

The election is approaching - and with it the decision about Germany's economic future. Pausder's demands show the way forward. Now it's up to voters and politicians to walk that path.