In the first half of 2022, German startups were able to Management consultancy EY raised just over €6 billion in fresh capital in 549 financing rounds – around 20 percent less than in the same period last year. The number of financing rounds fell by 7 percent. Despite the significant decline, German startups recorded the second-best first half of the year in terms of investments since EY began surveying in 2015. Thomas Prüver, Partner at EY, says:
"The investment level remains high compared to previous years – at least there is no sign yet of the widely feared slump. There is still plenty of liquidity in the market – but investors are taking a closer look at where they invest. Geopolitical uncertainties, the interest rate turnaround, and unclear economic prospects are creating considerable uncertainty in the market, which may not yet be fully reflected in the first half-year figures."
Boom in investments in energy startups
Bavarian startups completed 118 financing rounds in the first half of the year, securing €1.15 billion. Startups from the Free State – and presumably especially from the Munich area – in second place nationwide behind Berlin with 219 rounds and 3.25 billion euros and ahead of Hamburg with 414 million euros of capital raised.
At €1.81 billion, the largest investment went into the Software & Analytics sector. This was followed by Energy with €908 million, Mobility with €844 million, Fintech with €762 million, and Health with €479 million. Compared to the previous year, three extreme changes are striking: Fintech investments plummeted by 62 percent, and e-commerce financing even fell by 69 percent. This is certainly related to the very high comparative figures from the previous year. However, it also indicates a radical shift in priorities due to the current global situation. For example, capital flow into the Energy sector increased twenty-sixfold year-on-year.
