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We don't need startups, we need Digital-Mittelstand

mertbulan.com

11–20 of 244 posts

Re: We don't need startups, we need Digital-Mittelstand

#13

How can they compete with well capitalized start ups?

Stability, sustainability, EU legislation compliance and taking care of your individual problems. If it goes well, the companies will grow with you and don't outgrow you.

I think there is a growing Digital Mittelstand in Germany already. I myself work for such a company. We have some strong VC-backed competition. So far the company, self-financed, fares quite well.

I think the author misses a plethora of B2B markets when coming up with examples. There Mittelstand can be a very stable, (if desired) regional long time partner.

Re: We don't need startups, we need Digital-Mittelstand

#14

How can they compete with well capitalized start ups?

I think the idea would be to compete in different segments. Startups often focus on problems where hypergrowth is at least possible with massive investments. But the examples listed in the article advocate for ideas that might generate millions but not billions in revenue.

Some of the ideas the author is proposing are already happening in Germany. There are grants to develop games for instance which pay you a monthly salary for 1 year and a while back there was a similar one for open source projects.

Re: We don't need startups, we need Digital-Mittelstand

#16

I didn’t find this article credible. It is arguing for small and medium businesses instead of startups, and offers steps to see the vision it paints. But startups are where some of the biggest game changing ideas come from. Large enterprises can sometimes do that too. I feel like the mid sized companies are often stagnant. The product areas it suggests for businesses are very hard to survive in. These other lines sor…

>> However, if you’ve ever used a product marked “Made in Germany,” you’ll understand what German culture truly values: mastery of a craft and uncompromising quality.

What is OP smoking? I have a Bosch oven, Gigaset DECT phone set and a Fujitsu Siemens laptop, all made in Germany and their quality is complete bottom of the barrel crap, totally the opposite of "craftsmanship and uncompromising quality".

Chinese companies blow them out water to the moon and back in UX and build quality. The quality of recent German cars is also nothing to write home about. Full of cheap and hollow sounding plastics including premium brands like Audi.

The "Made in Germany" sticker is a myth for consumer goods and electronics.

Re: We don't need startups, we need Digital-Mittelstand

#17

For start Germany needs better internet connectivity. Getting 1gbps symmetric fiber or 5G coverage is a scifi! Even Romania has better infrastructure!

Yeah but Germany's copper infrastructure is "Made in Germany". That label is gotta be worth something. /s

Re: We don't need startups, we need Digital-Mittelstand

#18
I enjoy the idea of Mittelstands. The "forever growth" that is a common target otherwise feels misguided and overbearing at times, but I also understand that this clashes a lot with the american super-capitalist mindset. We should all be billionaires right? /s

On the topic of mittelstands vs startups - I think it's a non issue. You can have both. However, startups are starting to get a certain smell to them. Probably swearing in church here (hello ycombinator) but too many startups feel unreliable and the amount of founders just looking for an early exit is really not helping.

Re: We don't need startups, we need Digital-Mittelstand

#19

Ulysses (the Mac/iOS writing app) is made by a German company that's a good example of this.

Was curious until I saw it's subscription based! Seriously? For a writing app? They can politely gtfo with that, I already got burned before by subscription-ware before. I want to own my purchases thank you very much.

Re: We don't need startups, we need Digital-Mittelstand

#20
post #15

This is absolute nonsense. Using buzzwords can not replace reasoning. There are structural problems why germany failed to build a digital economy.

Try opening a business in Germany to find out why.

I did, it was super easy.
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