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In terms of technology adoption and innovation, German startups play a decisive role, as a recent study by the digital association Bitkom shows. The survey of 203 technology startups from Germany makes it clear that artificial intelligence (AI) and Big Data occupy the top positions. Currently, 53 percent of the startups surveyed use Big Data and data analytics, while 49 percent rely on AI. These trends are expected to continue to grow as they top the list of technologies that startups are considering - 39 percent are thinking about adopting AI, and 31 percent intend to use Big Data and data analytics.
Compared to the overall economy, startups clearly set themselves apart from established companies. Across the economy, only 15 percent are using AI, while another 25 percent have plans to use it or are discussing it. For data analytics, the share in the overall economy is 39 percent, and for discussions about it, 37 percent.
Bitkom President Ralf Wintergerst welcomes this development and predicts that startups will help make AI and Big Data more accessible to small businesses and SMEs. He emphasizes that these technologies will not only be used, but also further developed to bring new products and services to market.
To promote the spread of AI applications from the startup sector, Bitkom points to the AI voucher for small and medium-sized enterprises envisaged in the German government's startup strategy.
In addition, technologies such as the Internet of Things (IoT), 5G and 3D printing are emerging on the startup scene.However, virtual reality (VR), augmented reality (AR), blockchain and the metaverse are still in the development and discussion phase.While only 8 percent of startups are currently using VR/AR, 22 percent are planning or discussing its use. The situation is similar for Blockchain, which is used by 5 percent of startups but planned or discussed by 22 percent.For the Metaverse, 3 percent of startups are already users, while 15 percent are planning or discussing its use.
Wintergerst emphasizes that while technologies such as the Metaverse, VR/AR and blockchain have been discussed for some time, their breakthrough has yet to occur. Companies are encouraged to closely follow developments in the startup space and gain their own experience with these technologies early on.
Other technologies such as drones, robotics, autonomous driving and quantum computing play a lesser role in the German startup scene. Nevertheless, some startups are also discussing or planning future use here.
The latest German Startup Monitor report for 2023 shows a declining sentiment in the German startup ecosystem. With a value of 38.1 points, the startup business climate is 14.1 points below the value of 2021 and close to the second lowest level since the pandemic shock of 2020. This negative development is confirmed by 65% of the founders:inside, who have difficulties in assessing the future situation.
The willingness of business angels and VC funds to invest in startups is rated as good by only 15% of the Gründer:innen.As a result, 23% of startups have postponed planned financing rounds.A trend toward profitability is also evident.
Despite the many challenges, only 15% of startups have laid off employees in the past year. The Berlin ecosystem in particular has been hit harder, with 24% of Berlin startups cutting jobs.
The business situation is described as difficult to assess by 65% of the startups surveyed. Assessments of the current business situation are at their lowest point since the start of the Corona pandemic in 2020, and while business expectations are rising slightly, they are still well below the level of 2021.
Investment activity in German startups has declined noticeably compared to the records set in 2021 and the first half of 2022. Nevertheless, it is above pre-Corona levels. Larger financing rounds above €250 million have become rare, indicating continued uncertainty in the investment environment.
The respondents show a skeptical attitude towards the investment readiness of business angels and VC funds, with only 15% rating it as good.Nevertheless, 38% of the founders expect better investment conditions in the coming six months.
Despite the challenges, most startups did not lay off any employees last year and are focusing on further growth. Especially in Berlin, a more late-stage and funding-dependent ecosystem, job cuts and adjustments are more common.
The report makes clear that startups remain important engines for the German economy despite the difficult situation. The findings are based on a broad database of 1,825 startups surveyed between May and July 2023. This report is a preview of the German Startup Monitor 2023, which will be published on Sept. 25, 2023. The study was prepared in collaboration with the Startup Association, PwC Germany and Prof. Dr. Tobias Kollmann from the University of Duisburg-Essen (netSTART)
Experts warn that OpenAI is at risk of bankruptcy due to the high fixed costs for the chatbot ChatGPT. The company's user numbers plummeted in the summer. CEO Sam Altman had already pointed out the chatbot's high operating costs in December 2022, which have risen to $700,000 a day. Despite these costs, the chatbot is not yet profitable.
OpenAI's losses doubled to $540 million in May 2023. A Microsoft investment of ten billion dollars is helping to stabilize the situation for now. However, it is unclear how long this financial support will last.
In addition, OpenAI is suffering from a decline in user numbers. Chatbot ChatGPT saw a twelve percent drop in users within a month. The number of users dropped from 1.7 billion in June to 1.5 billion in July, according to SimilarWeb.
Objectives and Key Results (OKR) is a framework for setting and tracking goals and their outcomes in organizations, businesses, and teams. It was developed by Intel in the 1970s and later popularized by companies such as Google. OKR is used to improve the alignment, measurability, and tracking of goals, thereby improving an organization's performance and success.
The structure of OKR consists of two main components:
Objectives: These are clear and concise statements of what an organization or team wants to achieve. Objectives in an OKR framework are typically aspirational, inspirational, and intended to reflect the vision and strategic priorities.
Key Results: Key Results are measurable outcomes that quantify whether and how well a goal was achieved. They provide clear criteria for evaluating the progress and success of a goal. Key Results are specific, measurable, achievable, relevant, and time-bound (SMART criteria).
Typically, a team or individual sets multiple goals (Objectives) and for each goal, multiple associated Key Results. Key Results are usually associated with specific numbers or metrics that can be used to track progress. OKR cycles are typically quarterly or annual, meaning that Objectives and Key Results are reviewed and updated periodically to ensure that the organization is on track.
OKR promotes transparency, alignment and focus in an organization. It enables teams and individuals to focus their work on the most important goals while making progress and results visible. It is important to note that OKR promotes a culture of openness to goal achievement and learning. It encourages tackling goals boldly, even if not all Key Results are always achieved 100% of the time, and learning from the experience to continuously improve.