A total of 2,558 startups were founded in Germany last year, 491 of which were in Bavaria, according to the Report from Startupdetector. This puts the Free State in first place among the federal states, closely followed by Berlin (490) and North Rhine-Westphalia (421). However, compared to the previous year, these figures represent a further decline in the number of new startups – both nationwide and in the federal states. While the number of new companies in Germany fell by ten percent, the decline was twelve percent in North Rhine-Westphalia and Berlin, and as much as 17 percent in Bavaria. Only a few federal states were able to achieve growth in this area last year, most notably Saxony, where the number of new startups grew by 35 percent to 93.
Munich region leads in startup start-ups per capita
Looking beyond the individual federal states themselves, but rather at the startup ecosystems, a more differentiated picture emerges. Berlin leads the way with 490 new startups, followed by the city of Munich (194) and Hamburg (163). The districts of Munich (55 startups) and Starnberg (21 startups), which are part of the Munich ecosystem, also make it into the top 15 – the only districts located below cities. When measuring startups per 100,000 inhabitants, the district of Munich ranks first with 15.7 startups, followed by Starnberg (15.4) and Berlin (13.3). The city of Munich has 13.0 startups per 100,000 inhabitants, ranking fourth. Karlsruhe takes fifth place with 10.4 startups.
The Munich ecosystem also ranks high in the ranking of the most financing rounds per 100,000 inhabitants. However, Jena leads the table with 16.3 financings. This is followed by the city of Munich (14.7), the Munich district (14.0), Berlin (13.3), and Starnberg (13.2). The total number of financing rounds was 487 in Berlin, 219 in Munich, and 138 in Hamburg. In Bavaria, a total of 403 financing rounds were successfully completed in 2023, with North Rhine-Westphalia again taking third place with 284.
Bavaria, Land of the Angels
As the Startupdetector report shows, no other German state has as many startup investors Business Angels as in Bavaria. A total of 1,330 investors come from the Free State, followed by North Rhine-Westphalia with 989 and Berlin with 896. A large portion of Bavarian angels live in the city of Munich (538), but some are also located in the districts of Munich (155) and Starnberg (81). The report states:
"However, the hotspot for business angels is and remains Munich and its surrounding area. The Starnberg district, which once again saw significant growth, has by far the highest angel density in the country, with almost 60 angels per 100,000 inhabitants."
