Things that will always exist: Beer at folk festivals, rain in Hamburg – and the eternal East-West comparison. Today: Cannabis company edition.
We at 420MKT work with many companies from the cannabis industry – and at some point we had the feeling: “Somehow they all come from the West … right?”
We wanted to find out for sure – so we took a look behind the scenes.
Result: West Germany ahead – but…
We analyzed a random sample – and this is what we found:
3 out of 4 companies are based in West Germany.
21% of them come from Bavaria.
What do we make of this, Maggus?
Less than 10% are in the “classic East”
13 % from Berlin
Unsurprisingly, of course. But Berlin is officially counted as “East” in many statistics.
And that makes things a little difficult.
What do the official figures say?
According to IfM Bonn, around 80% of all new commercial start-ups in 2022 were registered in the West,
only 20% in the East – including Berlin. So does the cannabis distribution seem logical? Yes and no, because Berlin is counted as part of the East in these statistics.
Excluding Berlin, the “real” eastern share shrinks to around 10% – the same as in our analysis.
Migration from the East to Berlin
Numerous Berlin founders originally come from the East.
Whether from Leipzig, Magdeburg, Rostock, Chemnitz or Jena – Berlin is a logical next step for many young talents from Eastern Germany. They are founded in Berlin – their roots are often in the East.
Does this mean that the East supplies the people – Berlin profits from the numbers?
Yes, statistically speaking, proportionally more East Germans move to Berlin than West Germans – especially young people, often well educated or interested in starting a business. Many of them stay long-term, while West Germans tend to be more mobile and move on more often.
So the talents are leaving the East permanently – but continue to appear in the statistics as “East German start-ups” because Berlin is formally part of it.
This means that the East is losing out twice over: in terms of people and visibility.
Subsidy booster: Why the East is doubly worthwhile
Especially in the cannabis industry, where many things are still in flux, every resource counts.
And this is exactly where an often underestimated advantage comes into play: BAFA funding.
Our services at 420MKT – i.e. SEO, performance marketing, web design & ads – are eligible for funding.
But many people don’t know this: How much funding you receive depends on WHERE you set up.
BAFA funding: West vs. East
| Region | BAFA funding quota |
|---|---|
| East Germany | up to 80 % |
| West Germany | only 50 % |
In concrete terms, this means that start-ups in the East receive more funding for the same amount of work – regardless of the sector or business plan.
Conclusion: those who go east not only set up more efficiently – they also change the game
The sector is currently west-heavy – but this is certainly more due to habits, capital allocation and “statistical tricks” than to real potential.
Because:
- East Germany has a higher start-up intensity per capita
- Better funding conditions
- There are certainly plenty of unused niches that have long been overcrowded in the West
Do you want to be visible – whether in Weimar or Wedding?
Write to us – we’ll show you how to cleverly combine SEO, ads and promotion.
Ingo Lembke is the founder of 420MKT and the first point of contact when it comes to funding.
Contact
0157 37 58 57 35 // hi@420mkt.com
FAQ: BAFA funding for start-ups & companies in the cannabis industry
What is the BAFA subsidy anyway?
BAFA funding (“Promotion of entrepreneurial know-how”) is a government grant program of the Federal Office of Economics and Export Control. It supports small and medium-sized enterprises (SMEs) and start-ups in making use of professional consulting services – e.g. in the areas of marketing, digitalization, corporate strategy or SEO.
How much funding is available?
That depends on the location:
- 80 % subsidy in the new federal states (incl. Berlin, excl. Leipzig region)
- 50 % subsidy in the old federal states
- Maximum eligible daily rate: €3,500-4,000 net, depending on consulting and project scope
👉 In the best case scenario, you only pay 20% of your own contribution – the rest is covered by the state.
Who can apply for funding?
In principle, almost all small and medium-sized enterprises (SMEs) that:
- have fewer than 250 employees
- have an annual turnover of less than € 50 million or an annual balance sheet total of less than € 43 million
- have their registered office in Germany
- have no ongoing insolvency or tax problems
Cannabis companies (including newly founded ones) are explicitly eligible – whether medical, retail, marketing or technology.
Which 420MKT services are eligible for BAFA funding?
All our strategic services around:
- SEO (search engine optimization)
- Performance Marketing & Google Ads
- Website consulting & conversion optimization
- Brand presence & digital visibility
- Competitive analysis & strategy planning
In short: everything that helps you to become visible and successful online – set up in a legally compliant and transparent manner.
How does the application process work?
It’s simple – we’ll help you:
- Short initial consultation: We check whether you are eligible
- Application via the official BAFA portal (usually handled by the advice center)
- Consulting contract & project start after approval
- Final report & proof of payment
- You receive the subsidy directly from the state into your account
We work together with an approved funding consultant – you don’t have to struggle through bureaucracy yourself.
When is this particularly worthwhile?
- At start-up (e.g. for brand development, visibility, launch campaigns)
- During a relaunch or growth spurt
- If you are BAFA-eligible AND based in the East – then it’s really cheap
- If you’re in a competitive industry like cannabis, where professional communication and visibility are key
And if I’m in the West – is it still worth it?
Yes, even with a 50% subsidy you save half of your marketing investment.
But of course, you get more for the same money in the East – and you should think about this strategically, especially when choosing a location or setting up a branch.