Startups pitch their ideas regularly, and reverse pitches from investors are no longer a rarity. At the Munich Startup Festival this year, another variant was added: the politician pitch. At the beginning of the panel “Visions for the Munich ecosystem: Questions and answers from the city council”, the participating city councillors – Manuel Pretzl, CSU/FW parliamentary group leader on the Munich City Council, Fritz Roth, FDP city councillor, Sebastian Weisenburger, city councillor for the Green Party – Rosa Liste parliamentary group, and Felix Sproll, SPD/Volt parliamentary group – were able to present their views on and vision for the Munich startup ecosystem in a short pitch.
But what are the major challenges that the city councillors see for startups in Munich? And what options does the municipality have to change things here?
Reducing bureaucracy
The first point in the discussion was bureaucracy, or rather its reduction. Felix Sproll already explained in his vision of the future that he would like to be able to set up a company in just a few minutes on the go from a smartphone. A point that moderator Magdalena Oehl, Founder of TalentRocket and Deputy Chairwoman of the Startup Association, was only too happy to take up. Because from the perspective of the association and the startups organized in it, bureaucracy is also a very big problem. However, changes, such as the introduction of digital business registration, often take a very long time.
Fritz Roth explained why this is the case: according to his analysis, there is no service mentality in many authorities, especially in the KVR. Forms and their processing should finally be digitalized and smart solutions should be introduced. There is also too much risk aversion, which slows down decision-making processes considerably. A point that Sebastian Weisenburger also agreed with. However, he pointed out that changes take time, not least because organizations and the people in them have different histories. Manuel Pretzl added to this by explaining that employees in the public sector often spend their entire career there – and therefore some of them may still remember how the fax once represented a revolution.
Access to commercial space
Another problem is Munich’s perennial issue of high rents – whether commercial or private. Felix Sproll argued that Munich should be expanded upwards. And not so much in the form of new high-rise buildings, but by adding storeys to existing buildings. Whether residential or commercial buildings, an additional storey on top could quickly provide additional space. Here, too, some things have already been initiated, but as with the reduction in bureaucracy, it is taking time for the decisions to have an effect. Ironically, this is also due to the bureaucracy, as Roth pointed out: as an extension is more difficult to manage than a new greenfield building, there are certain “inertia elements” that shy away from this work.
Festival moderator Caro Matzko, who had stepped in as second moderator of the panel for Bits founder Bernd Storm van’s Gravesande, who was ill, then addressed the ominous rule according to which nothing may be built higher in Munich than the Frauenkirche. Pretzl clarified that this decision was the result of a citizens’ petition and had not been in force for some time. Nevertheless, some people still feel bound by it – also because the people of Munich have repeatedly made it clear that they do not want high-rise buildings.
Sebastian Weisenburger also suggested extending the interim uses established in the art and culture sector to commercial properties as a further means of alleviating the problem. Pretzl added that investors and owners of commercial properties outside of inner city locations are now much more willing to respond flexibly to the needs of smaller companies.
Skills shortage
The omnipresent shortage of skilled workers even made a double appearance on the panel. On the one hand, of course, when the topic of work permits for highly qualified employees of startups was discussed. Secondly, when the number of female founders in the Munich ecosystem was addressed. Magdalena Oehl pointed out that this is only 13% in the state capital, compared to 20% nationwide. In addition to the reasons for this – the focus on STEM subjects in the Munich scene was identified as a source of inequality – the discussion also addressed the issue of balancing family and career. This led to a lack of childcare places and therefore a shortage of specialists for daycare centers and kindergartens.
This is also where the biggest differences between the positions of the political groups became apparent. While Manuel Pretzl focused on accelerated access for highly qualified workers, Felix Sproll emphasized that he wanted this for all workers. However, Weisenburger announced that a solution in the form of a Welcome Center at the KVR was on the horizon.
Open Data and Mentoring Program
Another point raised by the city councillors was the topic of open data. The city has a lot of data, for example on topics such as mobility and the environment. Felix Sproll would like to see this published and shared more with companies.
Fritz Roth was the only one of the city councillors to venture a look at other ecosystems. Specifically, he looked at Mainz, where there is a strong focus on life sciences with Biontech behind it. The city and state have developed a clear vision of what development should look like over the coming decades. There are also regular events and a mentoring program.
Homework for the city councillors
Finally, the city councillors unanimously appealed to the founders to get in touch with the parliamentary groups with their concerns. This is the only way for politicians to know what companies need and to enter into discussions with them in order to develop ideas and solutions together. Magdalena Oehl also had a very specific idea. She asked the politicians to choose one of the topics addressed and work on solutions – ideally immediately after the panel. Felix Sproll then pledged to focus on accessibility with more data, Sebastian Weisenburger took on commercial space, Fritz Roth wanted to look into a mentoring program based on the Mainz model and Manuel Pretzl on faster, unbureaucratic approvals.
