In 2024, startups in Germany managed to secure more funding, even though the number of deals decreased. German startups raised about seven billion euros in venture capital, which is 17% more than the previous year, according to EY’s Startup Barometer. After two challenging years for the startup scene, there is an upward trend, despite a drop in the number of financing rounds by 12%, down to 755 from 861 in 2023. The peak year of 2021 had 1,160 investment rounds, so there’s still a gap to close.
The positive trend is mainly due to an increase in large investment rounds. Startups secured at least 50 million euros in 29 rounds, eight more than the previous year. Deals ranging from 10 to 50 million euros also increased, from 95 to 102 in 2024.
The second half of 2024 marked a turning point, with both the number of financing rounds and the deal volume exceeding the first half of the year for the first time since 2021.
Tech startups clinched the largest deals. The AI startup Helsing from Bavaria raised 450 million euros, Cologne’s online translation tool DeepL secured 277 million euros, and the chip company Black Semiconductor from Aachen gathered 250 million euros. Half of the top-10 deals were made in Bavaria, with two companies from North Rhine-Westphalia, and one each from Hamburg, Hesse, and Baden-Württemberg.
For the first time, Berlin lost its top spot in the regional rankings to Bavaria. Startups in Bavaria collected a total of 2.3 billion euros in 2024, 614 million more than the previous year, while Berlin startups raised 2.2 billion euros, 204 million less than in the previous year.
“Bavaria surpassing Berlin in funding is due to the tech and AI boom, where Bavaria leads,” said Thomas Prüver, a partner at EY. “At the same time, we see a significant decline in e-commerce investments, traditionally a strength of Berlin.” However, most deals are still made in the capital, with 256 financings, followed by Bavaria with 164, and North Rhine-Westphalia with 78.
Tech startups, particularly those in software and analytics, were impressive, securing around 2.2 billion euros, nearly 200 million more than the previous year. The healthcare sector also saw its investment volume more than double to 958 million euros. Energy startups took third place, raising 841 million euros, about 160 million less than in 2023.
Startups offering Software as a Service (SaaS) were particularly successful, with 162 financing rounds, accounting for over half of the total investment, totaling 1.1 billion euros. AI startups followed with 56 rounds and 820 million euros in investments. Blockchain startups secured 106 million euros in 11 rounds.