10 predictions for German technology in 2022
2021 has been a big year for the German startup scene, as it has grown seven new unicorns and thousands of startups have pocketed record amounts of funding. So will next year be even better?
Following our review of Germany’s tech success this year, Sifted asked 10 German entrepreneurs, investors and community builders what they think 2022 holds for the tech world. Here’s what they predicted.
Web3 will go mainstream
Be ready for the least expected family member to comment on crypto investing strategies under the Christmas tree this year. While the majority could still associate crypto with decentralized finance, it is much more than that. The curious hype of NFT and “play to win” spread from the United States to Europe and began to distort our peaceful Web2 reality.
“The number of newly funded blockchain-based startups will increase dramatically over the next year – and they won’t be exclusively in fintech either.”
The brightest minds are leaving their current projects to join what is the most exciting revolution since the invention of the internet, and I predict that the number of newly funded blockchain-based startups will increase dramatically over the next year – and they won’t. exclusively in fintech either. According to Atomico’s 2021 State of European Technology report, there has been five times more crypto investment this year than in 2020.
However, full mass adoption will only happen when the decentralized Internet becomes so intuitive and easy to use that people won’t even realize they’re surfing the Web3. This will happen when we crack interfaces, UX, and scalability.
I predict that we will see huge progress in 2022 and I am particularly excited about: European startups focused on community tools, since communities are at the heart of this new decentralized Internet and the gamification of consumer applications.
Katia Yakovleva, co-founder of the Berlin-based union of angels Spoti Angels
B2B startups will become the driving force of the German tech ecosystem
In 2022, we will see a record number of B2B unicorns emerge from the German landscape that are already more capital efficient than their American counterparts. B2B often requires deep industry expertise: as the war for talent escalates, Germany will see more and more professionals leveraging their knowledge and networks to start their own businesses. VCs will be increasingly active in finding these profiles from the earliest stages, with stronger links forging around the best technical education institutions in the country.
Unrelated: We will experience a peak in the crypto hype. Expect your dentist to share “insider tips” on the next hot token to deposit on your next visit!
Christian Miele (below), President of the German Startups Association and Partner of Headline VC
Wearable health devices will continue to explode
Throughout the pandemic, much of the world has taken the time to slow down, to take better care of themselves mentally and physically, while increasing their awareness of the impact we humans have on it. environment. Technology has the fantastic potential to be the bridge between people’s well-being, consumption and action. I believe that healthcare technologies, especially wearable devices which offer a plethora of untapped opportunities, will increase their market penetration, further shaping people’s habits and behavior for the better.
Kağan Sumer, founder and CEO of Gorillas
Education technology will become a hot topic for investment
“After years of slow growth and little venture capital pouring into edtechs, corona has changed everything and accelerated user growth and proof of concept for many startups in this field. Edtech is no longer an extracurricular subject but has also found its place in schools. Finally, edtech leaves the niche and reaches the general public market.
Verena Pausder (below), Managing Partner of Pausder Ventures
More female-led teams leading startups in Germany with larger funding rounds
The cornerstone of innovation is diversity. However, there is still a huge problem of diversity in technology, especially in Germany, between VCs, founders and C-level executives. Lack of senior investors is one of the main reasons why capital continues. going excessively to all male-led teams.
According to the Female Founders Monitor 2020, 69% of founding teams in Germany were led by all-male teams, with just 11% led by female teams and 20% by mixed teams. According to Atomico’s 2019 State of European Tech Report, 91.6% of funds were invested in men’s teams and only 0.4% in women’s teams, even though women made up 21% of the money. sample.
And yet, the data can’t be denied: companies with female founders outperform those with all-male founding teams by 63% (First Round Capital). The research speaks for itself: diverse teams perform better and therefore have a competitive advantage in critical thinking and problem solving – which is why women will start to get more funding and larger funding cycles. .
This is partly because there is more pressure on VCs to step out of their comfort zone, out of their network, and to spend time watching the pitches of various founders. Investors will be forced to stop doing business as usual, looking only at the arguments of the founders who represent the typical pedigree of the founder’s profile.
And this is already the case: recently, Auxxo Women’s Catalyst Fund, led by Gesa Miczaika and Bettine Schmitz, was launched as Germany’s first venture capital fund seeking to support only startups founded by women.
Stephanie von Behr, co-founder and CEO of Founderland, an organization that helps accelerate the success of founders of women of color in Europe
Travel will become more informed, sustainable and innovative
During the darker days of the pandemic, not all of us (or, at the very least, the general public) were at home dreaming about how machine learning was going to optimize home technology. We dreamed of a day when we could travel: whether it was to visit loved ones, have an adventure and relax by the beach, or just escape the same four walls. Travel is human nature, and the pandemic has only underscored how important this is.
However, as it was reiterated at COP26, the climate crisis is something we have to face together, and we know that transport is responsible for 29% of global emissions, which means we need to change the way we travel. now. Consumers will travel more, so enabling them to make conscious choices should be our goal.
“I think that in 2022, we will see a huge resurgence of travel coupled with public pressure for more climate-friendly choices”
I believe that in 2022 we will see a huge resurgence of travel coupled with public pressure for more climate-friendly choices. This will force the transport sector to push for innovative digital solutions, which better meet the needs of users. When building, companies will need to build with a positive mindset for the planet, so sustainability is a given and not a luxury.
This innovation, in turn, will pave the way for new partnerships between sectors, promote more competitive regulation and provide more opportunities for travelers as restrictions ease.
Naren Shaam (below), CEO and Founder of Omio
Health will be looked at and treated in a more holistic way
Health and well-being will have a much greater impact, especially from a holistic perspective and not only in our personal but also professional life. Topics regarding female and sexual health, digestion, fertility and mental health that were once taboo are now discussed openly in social and mainstream media. This will help make prevention in health and wellness a much larger subject.
Chanyu Xu (bottom left), founder of her1
Sustainability will be the catalyst for digital purchases
All over the world, companies are beginning to realize the value of placing environmental, social and corporate governance (ESG) at the heart of their strategy.
The procurement function, by connecting with stakeholders and building coalitions across the supply chain, is uniquely positioned to help companies meet these ESG commitments and generate higher value.
Why? At Oliver Wyman’s recent poll of purchasing managers from around 300 large companies around the world, 80% said they are committed to sustainable development goals.
Additionally, resilience is increasingly seen as a critical risk for businesses, including supply chain disruptions. Investors are pushing for better ESG results, and procurement teams will play a crucial role in this implementation.
This fact is underscored by the growth in total sustainable fund assets, which topped a new high of $ 1.7 trillion in 2020, up about 50% from 2019. We can expect growing pressure from stakeholders and policy makers on ESG and sustainability. are the hot topics of our next decade.
Lubomila Jordanova and Nathan Bonnisseau, co-founders of Plan A
Cryptocurrency, NFT, and Buy Now, Pay Later will only get hotter
Since my world is very fintech-focused, the megatrends I see here are as follows: cryptocurrencies are going mainstream (trading in banks and everyone is trading); the democratization of digital assets in luxury or art through NFTs (cryptopunks, Sneakers RTFKT, Messiverse NFT collection by Lionel Messi); in verticalization / contextualization via integrated financial services (loans via marketplaces, personalized financing products for specific use, insurance via car dealerships) and in payment companies that eliminate friction (buy now, pay later by compared to credit cards with two-factor authentication)
Miriam Wohlfarth, Founder and Co-CEO of Bankxware
Femtech join forces
Femtech will experience massive consolidation in the next three years to give years in Europe, it will merge players in acquisitions or joint ventures and will offer platform solutions to women on their overall health, regardless of their age.
Eirini Rapti, founder of Inne
Miriam Partington is Sifted’s correspondent in Germany. She tweets from @mparts_