German startups received more than seven billion euros from investors in 2024. This is almost one billion euros more than in the previous twelve months (plus 17 percent). After two years of decline, the investment volume is thus rising again. The number of financing rounds, however, remains declining: 755 deals represent twelve percent fewer closings than in 2023 (861). This shows the Startup Barometer the auditing and consulting firm EY.
The positive development in investment volume is therefore due to the increase in large deals. In 2024, there were 29 major investments with a financing volume of at least €50 million each – eight more than in the previous year. The number of deals between €10 million and €50 million rose from 95 (2023) to 102 (2024).
Investment amount: Bavaria secures top spot
Bavarian startups received more than €2.3 billion in venture capital in 2024 – for the first time during the study period, surpassing Berlin startups. These raised around €2.2 billion. Five Munich startups are among the top 10 for the largest investment amounts, but not a single Berlin startup. Helsing leads the ranking with €450 million in venture capital. According to Munich Startup Insights, the ten largest Munich financing rounds alone totaled over €1.4 billion.
However, according to the EY Startup Barometer, Berlin continues to lead in the number of financing rounds – despite a decline of ten percent to 256 financings. It is followed by Bavaria with 164 financing rounds (down five percent) and North Rhine-Westphalia with 78 rounds (down 31 percent).
Thomas Prüver, Partner at EY, comments:
"The fact that Bavaria has overtaken Berlin for the first time in terms of financing volume is due to the tech and AI boom – Bavaria is leading the way here. At the same time, we are seeing a significant decline in e-commerce investments, Berlin's traditional strength."
Nonetheless:
"Berlin remains one of the most important startup capitals in Europe, with a very diverse and varied mix of young companies from a wide range of sectors. The fact that the capital continues to achieve the highest number of deals underscores this."
Large investments in AI startups
Artificial intelligence remains one of the most promising topics from an investor perspective. Startups in the software and analytics sector generated investment totaling €2.2 billion, almost €200 million more than in 2023. This was followed by the healthcare sector, whose startups realized a total volume of €958 million. This is more than double the previous year. Energy took third place. Startups in this sector raised €841 million in venture capital, almost €160 million less than in 2023.
