This is a talk I gave at SmartUp Berlin-Budapest (http://smartupbb.com/) about the history of Berlin's creativity and a brief history of the startup scene that evolved from it.

1. FromStasitoStartups
How Berlin Evolved into a Creative Hub
Travis Todd, Silicon Allee
@travisjtodd

2. 1871
• During the Industrial Revolution Berlin
became the capital of the German Reich
under Kaiser Wilhelm.
• The economic boom created new businesses.
• Berlin became the empire’s political,
economic, and scientific capital.

3. 1898
• The Berlin Secession was an art association
founded as an alternative to the conservative
state-run Association of Berlin Artists.
• Berlin’s first underground art movement

4. RESTART
World War One (1914-1918) leaves Berlin in ruins.

5. 1920
1920s
• Greater Berlin Law of 1920 makes Berlin largest
industrial city in Europe
• Human Rights & Personal Freedoms extended under
Weimar Constitution
Arts & Culture were booming:
• Important artists met at Romanisches Café on
Kurfürstendamm
• Josephine Baker introduced the new Charleston
dance sensation in 1926
“The Golden 20s”

6. 1920
1920s
Also technical innovations:
• In 1921 first Autobahn through the Grunewald forest
• In 1923 Tempelhof airport opened
• iIn 1926 the Funkturm (Radio Tower) was opened
“The Golden 20s”

7. RESTART
World War Two (1939-1945) leaves Berlin in ruins again.

8. 1945-1990
West Berlin:
• A cultural oasis in the
middle of the GDR
• West Germans living in
Berlin did not have to
serve mandatory military
service
• This led pacifists, non-
conformists, contentious
objectors, artists, and
other liberal creative types
to move to West Berlin

9. 1945-1990
West Berlin:
• Led to cultural movements
like Punk Rock, Techno,
Street Art
• US also sent Western radio
& TV into GDR as “cultural
propaganda”
East Berlin:
• Not to be outdone by the
West, Communists funnel
money into East Berlin
theater, art scenes
• Creative types from East
Germany flock to Berlin

10. RESTART
Fall of Berlin Wall & Reunification (1989-1990)
Professional East Germans leave and creative Berliners
are left with an blank canvas and empty playground

11. “Berlinisastartupitself.”
You may hear people say this:
This is disingenuous.
Berlin has always been a center for creatives,
subversives, innovators and free-thinkers.

12. “Berlinisastartup
anentrepreneur.”
Berlin keeps failing, getting knocked down, creatively
pivoting and reinventing itself. Berlin is not a startup,
it’s an entrepreneur.

13. TheThreeWavesof
BerlinStartups

14. TheFirstWaveofBerlin
Startups2007-2010
a.k.a Attack of the Clones
Exits:

15. TheFirstWaveofBerlin
Startups2007-2010
a.k.a Attack of the Clones
• Take US business models and roll them out in Germany.
• Not about creativity or product, just about making money from
Germans
• Actually started in 1999 with Rocket Internet selling an eBay
clone back to eBay (I only moved to Berlin in 2007, so only have
first-hand knowledge from then)
• Seen with much disdain from new creative entrepreneurs
moving to the city.
• But, good companies got acquired, creating new Angel investors

16. TheSecondWaveofBerlin
Startups2010-2013
a.k.a Drink Kool-Aid, Build Crazy Shit
Exits:

17. TheSecondWaveofBerlin
Startups2010-2013
a.k.a Drink Kool-Aid, Build Crazy Shit
• Influenced by the new Silicon Valley bubble a critical mass of
crazy entrepreneurs fight back against clones
• Many mobile-first companies learn that was a stupid idea (mine
included)
• Earlybird if first big VC firm to uproot and move to Berlin
• US & World starts taking notice; German companies are
acquired by International companies

18. TheThirdWaveofBerlin
Startups2013-2015
a.k.a Let’s Get Real
Exits:

19. TheThirdWaveofBerlin
Startups2013-2015
a.k.a Let’s Get Real
• Berlin starts to find the middle ground between crazy ideas and
real businesses, building an identity
• Berlin finds they’re getting good at food, fashion and advertising
• Repeat founders rebound and startup again
• More exits and a couple big IPOs
• More to come. Still evolving.

20. What’sBerlin’sSecret
Sauce?
(Besides curry-ketchup)
• Is it really just the cheap rent? Yes, that’s a big part of it.
• High quality of life: Greenest capital city in Europe. Cool Parties.
• Top tech universities. A creative history.
• International. Direct flights to everywhere important
• Importantly, it’s NOT Silicon Valley. Valley people want to get
out of an incestuous ecosystem.
• CAUTION: A cushy lifestyle leads to less hustle. Berlin doesn’t
have enough competition or pressure to force success.

21. Thanks!
Check out our new podcast:
soundcloud.com/hipsterandhack