Entrepreneurs have a big job when they’re deciding on where their startup should be based. They need to consider the best location to allow for networking and B2B marketing opportunities. Many entrepreneurs, both novice and experienced, also look out for opportunities in terms of the startup ecosystem and establishing partnerships.
Other entrepreneurs also consider entrepreneurial history, taxation, and cost of getting started or growing an existing startup. Selecting the right place for your startup will also help draw top software engineers to your business and perhaps attract the attention of the right investor. Here’s our pick of the three best European cities for startups.
1. Berlin, Germany
Young tech workers throughout Europe are flocking to Germany’s capital to enjoy the casual work environments and affordable rent that has seen an increase of the number of start-ups from a few dozen to around 2,500 in less than a decade.
Berlin now enjoys a great pool of talent and a thriving start-up scene in their diverse and dynamic city. It can offer start-ups a vibrant creative hub for music, film, art and design. Also, its relaxed visa application process means that you can attract top software engineers from around the globe without having to go through a complex and lengthy visa process.
2. London, England
London is the number one fastest growing city in the world and is home to over 4,000 start-ups, with over 70 co-working spaces and 36 start-up incubators and accelerators. One of the London-based start-ups called Hubble even aims to connect entrepreneurs with the space that they need to succeed.
London has a growing tech scene and its East-London tech hub, Silicon Roundabout, is attracting the attention of UK startups as international investors and businesses are heading there to share in its success.
The city is also a dominant player for trading in foreign exchange markets and at one point, nearly 41% of global forex trading went through dealers in the UK, making it an attractive location for finance start-ups.
3. Stockholm, Sweden
Stockholm is said to have the most digitally connected economy in the world and has produced more billion-dollar unicorn start-ups per capita than any other city in Europe. Companies like Skype and Spotify have roots in Sweden and it’s fast becoming a world leader in technology.
The Swedish government invested heavily in its technology infrastructure in the 1990s, establishing high speed internet and giving citizens tax breaks to buy a computer. This investment nurtured Sweden’s digital talent and made them savvy enough to create a culture of entrepreneurialism.
Stockholm has fostered a growing tech scene and is considered a haven for digital start-ups, with a network of shared working spaces and a community of hardware makers.
Each of these three cities can offer something different for a tech start-up, depending on what you think will benefit your company the most. Choosing the right location will increase your potential for expanding your start-up, as it will help to create networking opportunities and attract the attention of investors.