As can be seen from the current issue of the report series“Next Generation – New Startups in Germany” According to the study, the number of newly founded startups in Germany continues to decline. In 2023, founding activity fell by five percent compared to the previous year, to 2,489 new startups. 2022 saw an even sharper decline, with a drop of 18 percent to 2,619 new startups.
In a comparison of the federal states, Bavaria ranks first with 477 new startups (2022: 544), followed by Berlin (468; 2022: 502) and North Rhine-Westphalia (413; 2022: 446). This represents a decline in all three states. However, Baden-Württemberg recorded more new startups than in the previous year, with 304 (2022: 282), Lower Saxony with 141 (2022: 126), Saxony with 91 (2022: 71), and the city-state of Hamburg with 158 (2022: 143). This development underscores the increasing importance of regions beyond the established startup hotspots. The dynamics here are particularly striking. research-strong According to the study authors, startup locations such as Darmstadt, Karlsruhe and Heidelberg stand out.
The decline in new startups is evident in almost all sectors. By far the hardest hit was the blockchain and crypto sector, where 33 startups were founded, 64 percent fewer than in the previous year. The energy sector saw the most new startups, growing by 69 percent to 88 startups. Among the ten largest sectors, e-commerce (152 startups) and food (175 startups) were particularly hard hit, with declines of 18 percent and 16 percent, respectively. The medical sector also suffered a decline of 14 percent, with 269 new startups. Only the software sector was able to grow compared to 2022, recording an increase of 21 percent (462 startups).
New businesses per 100,000 inhabitants: Munich falls behind Berlin again
In line with the national trend, the number of newly founded startups in Munich is declining again. While 215 young companies were launched in 2022, the number fell to just 187 in 2023. This represents a decline of 13 percent. This also translates to a decline in the number of startups per 100,000 inhabitants. While Munich ranked first nationwide last year with a value of 14.5, this figure has now dropped to 12.4 – and the state capital has to cede first place again to Berlin, with 12.5 new startups per 100,000 inhabitants.
Magdalena Oehl, deputy chairwoman of the Startup Association, says:
"It's impressive that, despite global crises and increasing uncertainty, almost 2,500 startups have been founded in Germany. However, the decline also shows us how difficult the financing environment currently is—especially in capital-intensive hotspots. Germany needs to develop a stronger entrepreneurial spirit, especially now. If we make more capital available and promote spin-offs from research, our economy will benefit even more from the innovative power of its startups."
And Arna's groom, Co-Founder of Startupdetector, explains:
"Area is winning – there are great treasures lurking in Germany's regions. This is demonstrated by the high level of activity around research-intensive startup locations. Currently, however, the strength of the area is still being driven too strongly by individual hotspots such as Munich in Bavaria or Dresden and Leipzig in Saxony. Rural regions, on the other hand, are struggling. Therefore, we must effectively strengthen regional startup ecosystems and networks."
