All following data on the Munich startup scene comes – unless otherwise stated – from our Data & Insights DashboardIf you want to learn more, you can also search the database yourself for further insights.
For the Munich startup scene, 2023 got off to a stronger start than any in a long time: With approximately €488 million in capital, they raised more than in 2022 (€450 million) and also in 2021 (€381 million). This means the scene is approaching pre-coronavirus levels again. In Q1 2020, a total of €567 million in investments were raised – excluding IPOs via SPACs. For all periods considered, no figures were announced for some financing rounds, which is why the final amounts are even higher.
As usual, a few financing rounds account for the majority of all funds raised. In the period January to March, Isar Aerospace (€155 million) and Integrity Next (€100 million) accounted for more than half of the capital raised in the winter. (We have summarized the most important financing transactions of the past quarter here.) For comparison: In Q1 2022 there was no financing round above 100 million euros, at that time Xempus was able to secure the largest sum with 63.5 million euros.
Fewer financing rounds, lower average investment volume
Despite the high amounts raised, the number of financing rounds for Munich-based startups continued to decline – a trend that continued last year. While there were 67 financings in Q1 2022, the number fell to 52 by Q4 2022 and now to just 43. Fewer successful deals were last seen in spring 2019.
The average investment volume per financing round was €11.3 million. In the same quarter of the previous year, this figure was €6.7 million. However, excluding large rounds of over €100 million, the winter of 2023 amounts to only €5.7 million per financing round. The figure for winter 2022, however, remains at €6.7 million, as there were no mega-rounds back then. A comparison of the now-concluded quarter with the last three months of last year reveals a similar picture. In Q4 2022, the average amount excluding mega-rounds was €8.7 million.
Hardly any money from the USA
An interesting development occurred in the origin of the funds. Until now, it was common for a large portion of the funds—especially for large rounds—to come from the United States. However, in the first quarter of this year, investments were financed almost exclusively with German and European funds. Thus, the largest share of the €488 million raised, €258 million (52.7 percent), came from other European countries. German investors contributed a total of €180 million (36.9 percent). American investors were unusually modest, contributing only €33.4 million (6.8 percent).
Exits and fresh funds for the Munich startup scene
There has also been some movement in the area of acquisitions over the past three months. For example, the website personalization platform Trbo has acquired the chatbot startup Chatchamp and the Bernard Group has expanded the product portfolio of the Munich-based cleantech startup Hawa Dawa The management consultancy Deloitte, in turn, has acquired venture client firm 27pilots And the insolvency-hit sensor startup Toposens went to Mey Industry, the investment company of Webasto's main shareholder Gerhard Mey.
There was only one new investment fund in the Munich startup scene in the first quarter of 2023. The deep-tech VC Matterwave Ventures announced the first closing of its Matterwave Industrial Technologies II fund. Currently endowed with €75 million – including investments from the European Investment Fund, LfA Bayern, NRW Bank, and industry players – the fund's target volume is €130 million. Matterwave has invested in companies including Electrochaea, Dyemansion, and Orcan Energy.
