BERLIN (Reuters) -Nearly one in three startups in Germany would have second thoughts about accepting financing from U.S. investors, according to a survey released on Friday, in a sign of growing scepticism about the business environment under U.S. President Donald Trump.
Germany’s startup scene has long considered the United States a key partner, but sentiment has begun to shift amid uncertainty about Trump’s policies, with 70% of the 152 tech startups surveyed by digital association Bitkom saying he presents a risk to the German economy.
As a result, 31% of the founders said they are reconsidering financing out of the U.S., with 13% saying they now prefer EU investors, while 11% say they have become more cautious and 7% no longer consider it an option.
However, 30% said U.S. investors are still attractive to them even after the change in government, found Bitkom.
Nearly 90% called on Germany to strengthen its digital sovereignty and to become more independent from the U.S. by removing bureaucratic hurdles and making it easier to access public contracts.
“Authorities and administrations should become anchor customers for startups,” said Bitkom president Ralf Wintergerst.
“And we need to mobilize more venture capital for startups, especially from institutional investors,” he added.
(Reporting by Andreas Rinke, Writing by Miranda Murray, Editing by Friederike Heine)
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