A lot of US startups seem to go to London as a launch pad for their European expansion. There are some obvious advantages, such as the same language and many direct flights. But after one day in Berlin (and so take this with a grain of salt), I think Berlin merits serious consideration for any Internet business. There is not much of a language barrier as pretty much everyone speaks English. As advantages, the cost of operating from Berlin is likely to be as much as a third lower than London. Office space is amazingly cheap (many folks are paying less than 12 Euro per square meter and month, which works out to 15 bucks per square foot). The cost of living is also surprisingly low. One entrepreneur was telling me that 500 Euros a month was enough for a young person to get by. There are a ton of cultural things going on in the city. The net effect is that Berlin attracts interesting and talented young people from across Europe. I met a couple of startups today who made use of that to launch simultaneously in several countries. I believe that is worth considering as an alternative to London. As an aside, I was impressed with the density of startups in Berlin - more on that tomorrow.
