Why start-ups are stagnating in Austria

A total of around 3,800 start-ups have been founded in Austria since 2014. How many there were in 2025 is not yet known. The year before there were just over 230. Uncertainty and reluctance to invest would slow down the start-up momentum and there is no recovery in sight, said Hannah WundsamManaging Director of the think tank Austrian Startups at the presentation of the Austria Startup Monitors 2025. The annual report, for which more than 600 founders were surveyed, provides an inventory of the local scene.

Future technologies

More than 70 percent are in key technologies such as Artificial intelligencedata innovations, life sciences and energy and environmental technologies. 73 percent are planning to hire new employees this year. 9.000 Jobs should arise from this. The number has decreased slightly compared to the previous year. Wundsam attributes this to the use of AI. “Many start-ups use the technology to become more efficient and achieve more in smaller teams.”

The proportion of has reduced Womenfemale founders just did 21 percent out of. The year before there were still 22 percent. Anyway 34 percent of start-ups have at least one woman in the founding team.

The proportion of Foreign sales. With 42 percent was the highest value recorded since the survey began. 82 percent want to expand into international markets this year.

Profitability is becoming more important

More than half of the young companies have raised external capital. 49 percent will go with it 5 million euros or more valued. Almost 46 percent are profitable or have balanced balance sheets.

Profitability has become more important, said Kilian Kaminski from the start-up Refurbed. The company, which operates a marketplace for refurbished devices, was in the black for the first time last year. The times of growth at any cost are over, said the founder. Companies would have to manage to grow efficiently and be sustainably profitable.

The mood among the founders has brightened. Evaluate the current business situation almost 43 percent as very good or good. That is more than the year before (39 percent).

Fund of funds starts in 2027

Elisabeth Zehetnerthe State Secretary in the Ministry of Economic Affairs responsible for start-ups, sees the entrepreneurial spirit intact. She emphasized the with 23 percent high proportion of academic spin-offs from universities. These are start-ups with potential that will help shape prosperity, said Zehetner.

The State Secretary also referred to the fund of funds that has been planned for some time. The fund with a planned volume of 500 million euroswhich will come from public and private funds, is intended to support start-ups in their growth. The first investments are planned for 2027.

Opportunities for employee participation should also be improved. The new corporate form introduced at the beginning of 2024 is intended to do this FlexCo be evaluated, said the State Secretary. The scene also has high hopes for the uniform European legal form recently announced by the EU Commission EU Inc. Refurbed founder Kaminski is convinced that it will lead to more money flowing into European start-ups: