Berlin Remains at the Top, Bavaria Sets New Record
Although the total number of deals declined, Berlin remains the focal point of the startup ecosystem. With 256 financing rounds, the capital retained its top position, followed by Bavaria with 164 deals. Notably, for the first time, Bavaria surpassed Berlin in terms of total investment. Startups in the southern state received 2.3 billion euros, the largest share of total venture capital.
Industry Insights: Software & Analytics Dominates
The best-funded sectors highlight ongoing technological shifts. The Software & Analytics sector attracted the most capital, receiving 2.2 billion euros, followed by Health (958 million euros) and Energy (841 million euros). The growth in artificial intelligence was particularly striking, with investments reaching 820 million euros.
Large Deals Characterize the Year
There were more large financing deals in 2024 than in the previous year. A total of 29 financing rounds exceeded 50 million euros each. The Munich-based AI startup Helsing secured the largest investment, with 450 million euros, followed by DeepL (277 million euros) and Black Semiconductor (254 million euros).
Recovery Despite Challenges
Despite the decline in the number of financing rounds, the rising investment volume demonstrates that venture capitalists continue to have confidence in German startups. Technology-oriented sectors, in particular, are benefitting from this trend.
It will be exciting to see what other trends and opportunities will emerge for start-ups in 2025.
