The author is a writer for Sifted, an FT-backed site for European startups
Ask the founders of any startup in Munich how they got their business off the ground, and they're likely to mention UnternehmerTUM, the start-up laboratory of the Technical University of Munich (TUM), founded by German heiress Susanne in 2002. Klatten.
The nonprofit offers 20 programs that support startups with the basics of starting a company: from building a prototype, to pitching to venture capital groups, and learning how to become a CEO.
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Every year, 5,000 people participate in start-up programs at UnternehmerTUM, and 50 new companies are created.
The founders and venture capitalists note that one of the lab's key strengths is its sprawling network that includes industry groups such as Airbus and BMW, small and medium-sized enterprises, regional and international universities, venture capitalists, and the Bavarian Ministry of Digital Affairs.
Each partner offers something different to help startups grow – such as capital, connections, or becoming startup clients. As a result of these strengths, UnternehmerTUM tops the FT-Statista ranking of Europe's leading startup hubs in 2024.
“Our signature program is that everything is very integrated,” says Helmut Schönenberger, co-founder and CEO of UnternehmerTUM, adding that many of the startup lab's 400 employees are former students of TUM.
He explains that while 40 percent of the lab's funding comes from private investors and German state funding, 60 percent comes from companies that play an active role in the organization. They recruit talent from the university and collaborate with startups from UnternehmerTUM to bring innovative technology solutions to the market.
One such initiative, called Circular Republic, was launched in partnership with BMW to bring together companies, startups and academics with the aim of finding solutions for the circular economy: from battery recycling to electric mobility. “This is how you really cooperate and get enough power [to tackle] “Important topics,” Schoenberger says.
Many of the lab's corporate partners are also limited partners in UVC Partners, a venture capital started by UnternehmerTUM in 2011 that is now independent. It has become one of Germany's leading technology investors, with assets under management worth €400 million. Every year, UVC receives around 3,000 applications for funding from startups globally, even though it only makes 10 investments a year. Its portfolio includes German AI startup Aleph Alpha and mobility group Flixbus, an UnternehmerTUM alumnus.
Close collaboration with the university also ensures that entrepreneurship is seen as a viable career option for students early on – an aspect that Fabian Grüner, senior director of German VC group HV Capital, says makes the center so “successful” in putting forward high-quality startups.
Students at the Technical University of Munich can participate in UnternehmerTUM programs as part of their degrees, where they can gain the same amount of credits as in the academic course. This also helps ensure that academic research is transferred to society in the form of commercially viable products and services.
“UnternehmerTUM gives that ‘I can do it’ attitude, which raises the level of ambition among entrepreneurs,” says Benjamin Erhardt, General Partner at UVC Partners. “It's not just teaching [entrepreneurial] Techniques, but mindsets.
In fact, Schoenberger says the goal of his programs is to allow entrepreneurs to test ideas, even if they ultimately fail. The lab's three-month incubation program for very early-stage startups is the most popular.
Raising money for startups was difficult last year: in Germany, venture capital funding fell from $12 billion in 2022 to $8.3 billion in 2023, according to Dealroom data. But UnternehmerTUM set a new record: its startups raised $2 billion across 100 funding rounds, numbers unmatched by other German universities.
Schönenberger says UnternehmerTUM's model is more “stable” than other labs, because it has a tried-and-tested formula for producing startups, which it has refined over 22 years.
“[UnternehmerTUM] It is similar to a factory with a corporate production line. . . “It has such momentum,” he says. “Last year was a bad year for the venture capital ecosystem and a very difficult year for our startups. But it makes a big difference when you have… relationships with venture capital firms and other partners, not only in Germany but in Europe and especially the US.
However, running an operation of this size efficiently is “a very difficult management task,” Schoenberger says, especially since the startup is growing at 20-25 percent a year in terms of the number of employees, students and startups. Ups it supports.
But a successful startup laboratory cannot rest on its laurels; They must adapt quickly to keep pace with external challenges, such as technological change.
“Every month, new technology emerges and we have to think: How can we integrate it?” Schoenberger says. “Are we creating a new course at the university? How can we build the infrastructure for this technology? How can we find partners for this? How can we fundraise and gain new corporate partners and investors? “It's constant.”
UnternehmerTUM now has plans to replicate its model in other locations. The organization is collaborating with the German Federal Ministry for Economic Affairs and Climate Action to build 10 startup factories near universities in an effort to produce more successful startups, and turn Germany into a leading startup country.
“It's up to Susan [Klatten] “He's been saying for 20 years,” Schoenberger says. “If you want to preach entrepreneurship, you have to be an entrepreneur yourself.”
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