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Austrian startup scene: Dynamic growth and international expansion

13. May 2024

More than 3,400 startups have been established in Austria since the year 2012. During this period, the proportion of international founders has risen to 17%. In turn, 73% of the startups operate internationally from their Austrian base. Find out more about developments and trends in the Austrian startup scene based on information from the latest Austrian Startup Monitor.

Austrian startups demonstrating an impressive innovative strength and capability to adapt, are able to flourish in the heart of Europe The recently published Austrian Startup Monitor 2023, a survey jointly implemented by the AIT Austrian Institute of Technology in conjunction with Austrian Startups and the Entrepreneurship Center of the Vienna University of Economics and Business, provides a deep insight into this dynamic startup scene. Featuring the participation of 600 founders and managing directors, the report offers a comprehensive review of the sector, which continues to expand and grow in spite of global uncertainties.

The results of the Austrian Startup Monitor are promising. For the first time, Austria’s startup sector reached the threshold of 30,000 employees and is becoming increasingly profitable. More than 40% of the startups have reached the break-even point, an impressive increase of 24 percentage points from the previous year. This underlines the role of startups as a decisive growth engine, demonstrating resilience in the face of difficult times.

The internationalisation of Austrian startups is particularly noteworthy. The Austrian Startup Monitor 2023 highlights the fact that 73% of the startups have entered international markets. This trend shows the international outreach and impact of Austria’s young, innovative companies. In this regard, it is evident that their international orientation is a key element driving the growth and scaling of these companies.

The percentage of international founders has risen by about four percentage points, from 13% in the year 2021 to 17% in 2023. German nationals account for 9% of startup founders in Austria, as the Austrian Startup Monitor concludes.

The report attaches particular importance to focusing on scaleups i.e., startups which have already achieved a significant size and speed of growth. Some 14% of the startups can be classified as scaleups, quite frequently attracting international investments and gearing their operations to expanding. These developments are decisive in establishing Austria as a startup hub in the international arena.