BERLIN (Reuters)

Nearly one in three startups in Germany would have second thoughts about accepting financing from U.S. investors, according to a survey released on Friday, indicating growing skepticism about the business environment under U.S. President Donald Trump.

Germany’s startup scene has long considered the United States a key partner, but sentiment has begun to shift amid uncertainty over Trump’s policies, with 70% of the 152 tech startups surveyed by digital association Bitkom stating that he presents a risk to the German economy.

As a result, 31% of the founders are reconsidering financing from the U.S., with 13% now preferring EU investors, 11% becoming more cautious, and 7% no longer considering it an option.

However, 30% still find U.S. investors attractive even after the government change, according to Bitkom.

Nearly 90% called for Germany to strengthen its digital sovereignty and become more independent from the U.S. by removing bureaucratic hurdles and facilitating access to public contracts.

“Authorities and administrations should become anchor customers for startups,” said Bitkom president Ralf Wintergerst.

“And we need to mobilize more venture capital for startups, especially from institutional investors,” he added.