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The first quarter of 2024 once again brought little money into the coffers of the Munich startup scene. The total financing amount was just €353 million. This is slightly below the level of Q4 2023 (€365 million) and significantly below the same quarter of the previous year (€492 million). For all periods considered, no figures were announced for some financing rounds, which is why the final amounts are even higher.
There were only two large financing rounds in the winter. Tubulis secured €128 million in its Series B, and Finn secured €100 million in its Series C. (We have summarized the most important financing transactions of the past quarter here.) This means that Q1 2024 is doing better than Q4 2023, when there wasn't a single investment exceeding €100 million. The same quarter of the previous year also saw only two mega-investments. The problem is that, due to the further decline in total investment, these rare successes only further dilute the quarter's results. The two financing rounds from Tubulis and Finn account for almost 65 percent of the total investment. Excluding the mega-rounds, Q4 only totals €135 million – the lowest quarter since Q2 2020, when only €127 million was raised at the start of the coronavirus pandemic.
Startup scene sees fewer investment rounds and hardly any money from overseas
The number of investment rounds also declined again, continuing a trend that began in mid-2022. With only 30 successfully completed financing rounds, the number in the 2024 quarter is the lowest since autumn 2017, when only 30 startups from the Munich startup scene also found investors. In the same quarter of the previous year, there were 59 successful investments and 45 in the previous quarter.
The average investment amount (excluding mega rounds) was €4.8 million per financing in the months January to March. In the previous three months, it was €8.1 million. In the same quarter of the previous year, the average was €4.2 million.
US investors remained cautious during the winter. The share of American capital in financing rounds for Munich-based startups in the first quarter of this year was 16.2 percent (€57.1 million). In the same quarter of the previous year, it was only 6.6 percent (€32.7 million) and in the last quarter of 2023, it was 13.2 percent (€48 million). The majority of the financing amounts from January to March came from investors in Germany (35.7 percent, €126 million) and the rest of Europe (45.3 percent, €160 million). Funding from Asia and other regions traditionally plays a minor role in Munich's ecosystem.
Acquisitions, insolvencies and new funds in the Munich ecosystem
There were no IPOs of Munich startups in the first quarter, but nine young companies found new owners. Relevo is now part of the Swedish Duni Group, Zavvy was acquired by the HR platform Deel, and the edtech Heytimi and Noyes Technology also found buyers in the first quarter. However, some of these sales were born out of necessity, as the startups had previously slipped into insolvency. Three new insolvency proceedings were also opened, and two more Munich startups were declared preliminary insolvency.We have summarized more about the bankruptcies of the quarter here.)
At least the money now seems to be flowing more freely to venture capital funds again. From January to March, eight VCs announced the closing of their funds and raised a total of around two billion euros. Among other things, the final close of Vidia Climate Fund I brought in 415 million euros for the VC Vidia, founded in 2021. Golding Capital was able to further fill two funds, Golding Secondaries (second closing with 280 million euros) and Golding Infrastructure (first closing with 360 million euros), and also Picus Capital secured around 70 percent of the target amount of 200 million euros of its Picus Venture Fund II in the first closing. In addition, YZR Capital with the Growth Fund Germany and Alpine Space Ventures new donors with NATO’s European Investment Fund.
