Lack of capital is driving German startups abroad

What is particularly noteworthy is the combination of high capital requirements and dwindling confidence in Germany as a business location: only 17 percent of the surveyed startups consider the venture capital supply in Germany to be sufficient. This capital shortage is a warning sign for the German startup scene, as it's not just about individual funding rounds, but about whether growth companies will increasingly organize their scaling abroad in the future.

The figures come from a recent survey of 133 tech startups in Germany, commissioned by the Digital association Bitkom was carried out. Bitkom President Ralf Wintergerst warns:

"With every startup that leaves Germany, we lose jobs and added value, but above all, innovative ideas and solutions."

Wintergerst points to additional need for action regarding venture capital and institutional investors.

Almost 50 percent are planning a financing round in 2026.

48 percent of the surveyed startups plan to raise capital this year. The average funding requirement is around 4 million euros. While 64 percent of the startups seeking capital expect to secure funding, the lack of capital is causing skepticism for 13 percent. Almost one in four startups is undecided or declined to comment.

This paints a mixed picture: Founders still see opportunities in the market, but uncertainty regarding the actual availability of capital remains high. This is particularly relevant for growth-oriented startups, as delayed or smaller funding rounds can have direct consequences for hiring, product development, and internationalization. This assessment is based on the identified financing intentions and the simultaneously critical evaluation of the available capital.

German and EU investors clearly ahead of the USA

Regarding the origin of capital, the preference is clear: 74 percent would prefer to cover their capital needs with investors from Germany, while another 22 percent consider German investors a viable option in principle. More than half prefer investors from other EU countries, while only 13 percent prefer American investors. Investors from China play a negligible role: only one percent prefer them, while 66 percent rule them out.

This shifts the focus further towards domestic and European capital. For the The ecosystem is doubly relevantOn the one hand, investors are increasingly seeking geographical proximity and a better understanding of the market. On the other hand, this increases the pressure on Germany and Europe to be able to finance larger rounds on their own.

IPO outlook: Germany and other countries almost on par

Even regarding potential exit strategies, there is no clear preference for the domestic capital market. 43 percent of startups can envision an IPO in Germany, while 40 percent are considering a foreign stock exchange.

This is further evidence that the question of location doesn't begin with early-stage financing. It extends into later growth phases, where liquidity, analyst coverage, and the market breadth of stock exchanges become increasingly important. The almost identical figures suggest that German startups now consider national and international capital markets as virtually equivalent options.

The Win initiative aims to counteract the lack of capital.

Bitkom points to further strengthening the Win initiative as a potential lever. According to the Federal Ministry of Finance, the initiative aims to improve the framework for growth and innovation capital. The participating companies intend to invest around €12 billion by 2030 in strengthening the German venture capital ecosystem.

In addition, there are calls for stronger incentives for institutional investors and a reform of private pension schemes to allow more capital to flow into venture capital structures. This is precisely where the political and economic relevance of the Bitkom figures lies: if the need for financing increases, but the domestic capital base is perceived as too weak, there is a risk of companies relocating abroad and losing their potential for scaling.