The wonder child of Berlin's startup scene is deceasing. Says a lot about the scene unfortunately.
Big tech hubs are bound to see startups fail, especially leaking ships that never turn a profit.
Berlin isn't perfect but whatever happens to SoundCloud doesn't really say anything about its tech scene. Were SoundCloud be London/NYC/SF based, it would have gone under much, much quicker.
In my personal experience, Berlin is very foreigner-friendly.