Germany's Startup Sector Surges

Venture capital invested in fledging companies in Europe's largest economy has dramatically increased, and the number of firms being founded is on the rise as well.

BERLIN, July 8, 2025 /PRNewswire/ -- The first six months of 2025 saw 1500 new startups established – a rise of nine percent compared with the previous six months. That's according to the report "Next Generation – Startup Foundings in Germany," jointly published by the German Startup Association and the platform startupdetector.

Berlin and Munich continue to be attractive locations, but the eastern German regional state of Saxony also booked a 71 percent increase in the number of startups founded.

"Hotspots like Berlin and Munich remain central for a lively startup ecosystem, said startupdetector co-founder Felix Engelmann in a statement. "But we're also seeing a positive dynamic beyond those centers. Our base is now broader, and that gives us additional potential."

The study comes on the heels of figures from Germany's economic development bank, the KfW, showing that EUR 4 billion was invested in German-based start-ups in the first six months of 2025. That represented an annual increase of 45 percent. It's the third straight half-year period in which start-up funding has risen.

"Despite the current economic volatility, entrepreneurs are choosing Germany," says Germany Trade & Invest Director of Trend & Innovation Scouting Philipp Kövener. "This trend is evidence of Germany's well-developed innovative strength and its robust startup ecosystem. Our excellent research and development capacities, high qualified talents, modern infrastructure and our receptivity to new technologies make Germany an ideal location for tech start-ups."

Germany Trade & Invest is the German government agency for international business promotion and is owned by the Ministry for Economic Affairs and Energy. It helps international companies do business in Germany and German companies do business abroad.

Contact:

Jefferson Chase, Senior Communications Manager, Germany Trade & Invest, Friedrichstrasse 60, 10115 Berlin, Germany.
[email protected]
+49 30 200099170

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SOURCE Germany Trade & Invest