Germans are notoriously reluctant to invest in shares, something which is bad for saving and also a burden on the entire economy. The lack of stockholders willing to invest means poor prospects for companies that want to go public for the first time to seek financing for additional growth through stock sales.
This is particularly true for young, emerging technology companies, who have little trouble raising the first million, but struggle with finding the next, larger round of financing to keep growing. One reason for this is the limited exit options for venture capital firms and other growth financers of growth.
So what can be done? One suggestion that comes up again and again is to create a new market platform focused solely on technology companies. This proposal reawakens a sense of dread in German investors, who recall only too well how efforts to create a new market at the start of the millennium resulted in a catastrophe for the German stock market. It was marked by an endless series of failures, mishaps and bad luck. It seems unlikely another go at creating a new market will suddenly turn Germany into a nation of bold investors.