Is Groupon’s CityDeal Acquisition A Disaster For German Innovators?
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The Groupon acquisition of CityDeal is being hailed by many across Europe as a good exit for the German-based clone (yes, there is no point in saying it is anything else but a Groupon clone). But luckily there are more than just clones in Germany. The burgeoning cluster in Mitte, central Berlin, is producing startups such as Soundcloud, hiogi, Babbel, Twinity, SongBeat and aka-aki. Nokia bought Dopplr and with it set up an innovation lab amongst the beating heart of Berlin’s startups. Hamburg has spawned many others include Qype, Europe’s Yelp, and more recently the interesting Apprupt. VCs in Hamburg and Munich vie over raw engineering talent out of German universities, and our TechCrunch Europe Munich and Berlin events last year were buzzing. As US-born Germany-based VC Paul Josefak recently guest posted for us, he’s coming across “multiple companies who recently closed either initial or follow-on rounds.”