Start-ups in society & politics: let’s talk!

So it’s no wonder that Zalando, Delivery Hero and Hello Fresh were the first unicorns to make it into the German share index. Large companies like Flixbus or Celonis will also go public in the foreseeable future. In other words: by 2030, the Dax will be characterized by rapidly growing technology companies. We have a golden decade ahead of us.

The reasons for this are diverse. The new generation of founders is not only well trained, but also extremely ambitious. It is not enough for her to just build a German market leader – instead, the young entrepreneurs want to create global champions. Added to this is the high availability of capital, especially from abroad.

All of this is wonderful news – and yet: We should also take this opportunity of the century for the German start-up scene as an opportunity to ask some important questions. Because now the course is being set for the future, and it will be decided whether the German start-ups want to go their own way or the US-American ones. I personally hope that we will provide answers to the questions of the coming years that are in harmony with our society.

For example, if we look at San Francisco and Silicon Valley, we see extreme social inequality. In addition to more and more millionaires, there is a record number of homeless people. Normal wage earners can no longer afford an apartment there, and social tensions are rising. We have not yet reached this point in Germany. But rents are also rising alarmingly in metropolises like Munich.

Economic success comes with responsibility

What does this have to do with German start-ups? I think that economic success always comes with responsibility. Entrepreneurs should ask themselves how they can make society better and fairer. It starts in the company itself: How do the start-ups want to deal with their employees in the future? How do you intend to distribute the jointly created value creation fairly?

In response to such questions, the young companies could, for example, make a voluntary commitment to advance important issues – such as access for lateral entrants or minorities to the start-up scene or the fight against climate change. Initiatives such as “Leaders for Climate Action” and “Founders Pledge” show how it can be done. In this way, the young companies could show that they are aware of their increasing responsibility and want to live up to it.

Together with other actors, the start-up scene should also think about another pressing question: How can you keep the profits of successful young companies in the country? Today most of them flow abroad because very few investors come from Germany. We can only change that by improving our capital market – for example through large funds that are set up by the state or private industry.

Or through public research programs, as the legendary US agency Darpa has carried out time and again. The start-up scene now has to get involved in this discussion. Otherwise the unicorns and many other companies will migrate. The result would be a painful sell-out abroad.

Young companies have to find the right balance

There is another area where we should definitely readjust: More and more young companies are relocating their headquarters from Germany to Delaware in the USA, for example – because the regulations there in terms of data protection and artificial intelligence (AI) are less strict than in Germany.

I myself am an advocate of data protection and the fair use of AI. But we have to find a balance in these areas that meets the needs of companies and society alike.

The relationship between the media and start-ups is also central to me. Here I would like to see more openness to new ideas in reporting and more mutual trust in dealing with them. Of course, the young companies also have to make their contribution and allow themselves to be judged by their own ethical standards.

Otherwise events like the Wirecard scandal or misdirected proposals like those in the unsuccessful thesis of the advisory board “Young Digital Economy” will destroy the basis of cooperation. As a start-up scene, you cannot, of course, demand unreserved, positive reporting and discipline from the media – young companies have to work for themselves to deal with journalists well. On the part of the media, however, there is also a lot of catching-up potential to look to the mostly still unprofitable growth of rapidly growing young companies with more confidence.

A new social contract is necessary

These are just a few examples of important issues that we need to address in the years to come. In order to create a new social contract together, in my opinion, we need more than mere lobbying. Rather, what is needed is a dialogue between all stakeholders – i.e. start-ups, industry, politics and the media. As a society, we have to learn to value success and risk anew. Conversely, as successful founders, we are challenged to find our own way of giving something back to society.

The upcoming change of government is a huge opportunity for all of us. As a society, we can now create the framework for sustainable economic dynamism. And we can set a development in motion from which everyone in Germany will benefit.

The time for such a restart has seldom been better. But the responsibility of the start-ups has never been as great as it is today. I am sure: The unicorns and all other young companies are ready for dialogue. Let’s do it!

The author: Felix Haas is the founder and executive chairman of ID Now, chairman and co-organizer of the “Bits & Pretzels” founding conference and investor in over 130 start-ups.

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