Innovation Requires Strong Partnerships: Why the Otto Group Stands by Startups
The German Startup Monitor 2025 reveals a significant decline in collaborations between startups and established companies – from 71.8 percent in 2020 down to 56 percent today. Editor Nadine Schimroszik criticized this trend in Handelsblatt as "abandoning" startups. The Otto Group remains committed to its long-standing corporate venturing tradition: as an anchor investor in Headline and Project A, a backer of VCs Revent and Norrsken, and through its venture client unit Otto Dock 6, it underscores the importance of these partnerships.
The German Startup Monitor 2025 paints a mixed picture of the startup landscape in Germany. On one hand, Germany is becoming more attractive as a founding location: nearly 40% of founders now rate Germany as more attractive than the USA. On the other hand, the study highlights a worrying trend: cooperation between startups and established companies is decreasing. "Market uncertainties and budget constraints cause large companies to reduce partnerships. For startups, this means less access to pilot projects, customers, and scaling partners—exactly the levers they urgently need for growth", the monitor explains.
Why does the Otto Group continue to prioritize collaboration with startups despite economic and political challenges?
If this trend continues, it could negatively affect growth opportunities and innovation capacity in Germany’s economy. In an increasingly tense and volatile global political environment, innovations developed according to European values and regulations are essential. The decline in partnerships is not only an economic issue but also a strategic challenge impacting Germany’s and Europe’s technological sovereignty. The Otto Group responds with a clear commitment and the company belief that now more than ever, the transformative power of collaboration must be harnessed to build a strong, independent European technology landscape.
We want to reaffirm our established corporate venturing approach and believe in the transformative power of collaboration.
Petra Scharner-Wolff, CEO of the Otto Group, emphasizes their commitment to startups:
"In a time when cooperation between corporations and startups seems to be faltering, we want to reaffirm our established corporate venturing approach. We believe in the transformative power of collaboration. Our long-term engagement – from strategic investments to our venture client unit Otto Dock 6 – reflects our conviction that only together can we create future-proof, sustainable innovations grounded in European values that strengthen Germany as a business location."
How does the Otto Group promote startup collaboration and knowledge transfer?
Through close cooperation and a strong European network, the Otto Group stays ahead of the curve, identifies trends early, and leverages knowledge transfer to improve its own business while boosting European innovation capacity:
- Anchor investor in Headline: Since 2008, the company has been one of the first anchor investors in Headline (formerly e.ventures), supporting promising early-stage projects.
- Partnership with Project A: Since 2012, the Otto Group has been an anchor investor in Project A, a leading operational venture capital fund for European startups.
- Focus on purpose with Revent VC: Since 2020, the group has backed Revent VC, a fund focused on sustainable and socially relevant business models, driving forward future-oriented innovations.
- Impact investing with Norrsken VC: In 2024, the Otto Group expanded its corporate venturing activities by joining Norrsken VC, an early-stage impact investor pioneering investments that deliver positive financial returns alongside measurable environmental and social impact.
- Venture client unit Otto Dock 6: This unit builds targeted bridges between startups and group companies to solve complex challenges and establish lasting, scalable business relationships. Otto Dock 6 actively seeks innovative startup solutions for specific corporate challenges, acting as a mediator between startups and the corporation.
- Extensive investment portfolio: With over 300 digital business investments, the Otto Group spots trends early, exchanges valuable insights, and ensures continuous knowledge transfer.
- Support for Hamburg's startup factory "Impossible Founders": The Otto Group actively supports this new local initiative and will provide significant funding in coming years to strengthen Hamburg’s startup ecosystem. "Impossible Founders" was one of ten nationwide winners in the federal ministry of economic affairs’ "Startup Factories" competition, aiming to promote innovative deep tech spin-offs from academia.
The Otto Group remains steadfast in this commitment even amid economic and geopolitical uncertainty. Strong European innovations and long-term partnerships are essential for companies and the economy to compete effectively on the global stage and prepare successfully for the future.
Quellen:
German Startup Monitor 2025, published by Bundesverband Deutsche Startups e.V. (German Startup Association); https://startupverband.de/fileadmin/startupverband/mediaarchiv/research/dsm/Deutscher_Startup_Monitor_2025.pdf
Handelsblatt – Commentary by Nadine Schimroszik: "German Corporations Are Abandoning Startups"; https://www.handelsblatt.com/meinung/kommentare/kommentar-die-deutschen-konzerne-lassen-die-start-ups-im-stich/100157796.html
Title photo: pexels.com
Photo Petra Scharner-Wolff: Ulrich Perrey
