Despite economic challenges, the startup landscape in Germany is developing positively. In 2024, 2,766 startups were founded – 11 percent more than in the previous year (2,498). This is confirmed by the latest data from the report series "Next Generation – New Startups in Germany," published by the Startup Association published jointly with Startupdetector. This makes 2024 the second-strongest year for startups, surpassed only by the peak in the COVID-19 year of 2021.
Helmut Schönenberger, Deputy Chairman of the Startup Association, says:
"Times of crisis are times for startups. The current figures send a strong signal for Germany as a business location. Particularly resilient and competitive companies emerge in times of crisis. The future federal government should support this momentum and make startups a priority. Germany must become a magnet for top talent and offer technology startups optimal growth conditions."
Software remains the driving force for new startups
With 618 new companies founded in 2024, more than one in five new startups will be in the software sector. The rapid development of technologies such as artificial intelligence is accelerating this trend.
Felix Engelmann, Co-Founder of Startupdetector, explains:
"The software sector is once again proving itself to be the driving force of the German startup landscape. Right now, startups are developing solutions that advance the entire economy and make an important contribution to overcoming current challenges."
The edtech and gaming sectors, which had two difficult years following the coronavirus boom in 2021, are also seeing renewed growth. Food and e-commerce startups are stabilizing in terms of new start-ups, but these sectors are also seeing an increase in insolvencies.
Great potential at research-related locations
The positive trend in new startups is evident throughout Germany. While the startup hotspots of Berlin and Munich remain by far the strongest locations in terms of per capita numbers, smaller cities are also playing a leading role. Increases are particularly evident where universities and research institutions shape the ecosystem. Their importance is also underscored by the startup density: Heidelberg leads the list of new startups per capita and, like Munich (in second place), Aachen, Darmstadt, and Potsdam (in fourth to sixth place), benefits from its proximity to research.
The Startup Association makes the entire report available on its website.
