The German capital and Australia's Prime Minister are made for each other.

12.11.15 AGAG

When Malcolm Turnbull arrives in Berlin on Friday local time, the city's burgeoning start-up scene should be high on his busy schedule.

The scale of investment has transformed Berlin into Europe's start-up capital — as a result, it could act as something of a model for the highly anticipated Innovation Statement the Prime Minister will deliver next month.

Australian-born Biunca Perera came to Berlin last year before starting to work with the online fashion group THEICONIC.

"The scene is buzzing here. There is just such an incredible amount of energy here that was lost for me back in Sydney," she said.

About 2,500 start-ups have so far set up shop in Berlin and are now a major driving force behind the city's economy, which has struggled to gain full momentum over the 25 years since the collapse of the Berlin Wall.

The biggest difference is that Australia is a couple of years behind in the e-commerce [and] start-up scene. In Berlin you will find countless opportunities in start-ups.

Biunca Perera, OptioPay

Perth-born Rob Morgan is in the process of establishing his second start-up in Berlin in two years.

"European investors seem less risk averse than many of their counterparts in Australia," he said.

"I really enjoy building companies from day zero."

Investors have poured 1.4 billion euros into the city's start-ups during the first half of this year alone.

There is a large pool of young talent from around the world in Berlin who have been drawn to the city's lifestyle, combining an endless supply of bars and cafes with some of the world's top cultural institutions.

The city also has a global reputation as a hub for all kinds of creative endeavours, from film and TV through to fashion and software.

Read the full stroy via abc.net.au