I’ve lived in Berlin for some years. What I‘ve seen from most of the startup scene there was that people are more collecting memories than building businesses. The predominant mindset was like „we don’t want to take over the world and we will most likely fail anyway“.
The successful ones, like Dubsmash, leave for the US after a while.
If I, as a German, was to create a startup in Europe today, I’d do so in London.