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The downward trend in financing rounds in Munich's startup scene continued in the second quarter of 2024. Between April and June, only €256 million was available for young companies in the state capital. This puts the total financing amount significantly below the level of both the first quarter of 2024 (€354 million) and the same quarter of the previous year (€417 million). Indeed, the last quarter was this weak due to the COVID-19 pandemic. For all periods considered, no figures were announced for some financing rounds, which is why the final amounts are even higher.
There were no mega-investments exceeding €100 million in the second quarter, whereas two investment rounds, Tubulis (€128 million) and Finn (€100 million), exceeded this mark in the first quarter. In the same quarter last year, there was at least one round that managed to break the €100 million mark – the €150 million investment in Jolt. The highest amounts in the now-concluded quarter were secured by Isar Aerospace with €65 million, Smart Reporting with €23 million, and Proxima Fusion with €20 million.We have summarized the most important financing transactions of the past quarter here.)
More investment rounds again
Despite the continued decline in total financing volume, the number of completed investment rounds increased again in the second quarter. A total of 37 financings were completed from April to June, six more than in the winter. However, this figure remains significantly lower than in the same quarter of the previous year, with 51 successful investments. The average investment volume in the spring was €6.9 million. In the first quarter, this figure (excluding mega-investments) was €4.4 million. Q2 2024 also performed better compared to the same quarter of the previous year: Back then, the average investment volume (excluding mega-investments) was €5.3 million.
US investors were more cautious than ever in the spring. The share of American funds in financing rounds for Munich startups in the second quarter of this year was 10.7 percent (€26.5 million). In the same quarter last year, it was 10.8 percent (€38.1 million). However, the majority of the financing amounts from April to June came from investors in Germany (52.3 percent, €134 million). European investors were also cautious this quarter, contributing only €49.2 million (19.2 percent). What was unusual about this period: money from Asia, which usually plays a minor role in the Munich ecosystem, accounted for a larger share than the funds from the USA this time, at €30.6 million (12 percent).
Acquisitions, bankruptcies and new funds in the Munich startup scene
There were no IPOs of Munich startups in the second quarter, but seven young companies found new owners. Among them was the medtech InformMe Part of Medavis, Adnymics was acquired by Linehub, the venture building unit Mantro Product Studio went to the Creative Dock Group and Flyeralarm absorbed Inai In addition, the insolvent Samdock managed to find a buyer who could take over the technology, brand, customers, and part of the team. Three new insolvency proceedings were also opened, and five other Munich startups were declared provisional insolvency. (We have summarized more about the bankruptcies of the quarter here.)
Finally, a look at the fund landscape: between April and June, four Munich-based VCs were able to announce closings. Vsquared Ventures For example, Vsquared Ventures Fund II closed with a volume of €214 million, down from the original €165 million plan. Bregal Unternehmerkapital closed its Fund IV with €2.65 billion, Maxburg Capital Partners secured €450 million for Maxburg Fund IV, and Munich-based VC Armira's Armira Growth Fund I secured €200 million.
