For years, software has dominated the German startup landscape. Meanwhile, the realisation that hardware could potentially earn even more money and the climate crisis' increasing urgency are causing investors to shift their attention. Startups like cylib, focused on battery recycling, are leading this change by tackling significant environmental challenges and revitalising Germany’s industrial heritage.
In a recent conversation with Maximilian Sachse for Frankfurter Allgemeine Zeitung, Danijel Višević explores the resurgence of hardware startups, particularly in the deep and climate tech sectors, highlighting:
💼 Europe’s lessons learned: “We have realised that we need to become more independent in Europe in terms of energy, food, innovation and production capacities.”
🚀 The launch of programs like the European Tech Champions Initiative, aimed at providing promising European growth companies with capital for late-stage financing rounds. With the German government contributing one billion euros, there is a strong commitment to fostering deep tech innovation.
💪 The challenges lying ahead, particularly in securing series B funding within Europe. Many investors are still hesitant to back hardware startups due to higher upfront costs and a lack of understanding of the (deep) tech behind.
🔍The necessity for informed investors who understand the complexities of deep tech, emphasising that “there are still too few investors like the World Fund,” who employ experts to effectively evaluate technologies.
At World Fund we remain optimistic about the future of hardware innovation in Germany. We are witnessing huge momentum in the deep tech sector this year and are committed to supporting companies like cylib, CustomCells , Planet A Foods (and two more to be announced soon 🤫) as part of the broader effort to build a resilient and independent European economy.
Read more about World Fund’s impact in the full article here (in German):