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The months of July to September – despite the summer holidays – brought an end to the downward spiral of financing rounds in the Munich startup scene. After the second quarter brought the ecosystem its worst result since the coronavirus pandemic with just €255 million, the third quarter saw a total of €1.1 billion find its way into the accounts of Munich startups. The same quarter last year saw €615 million. This makes Q3 2024 the strongest quarter since the end of the record-breaking year of 2021.
The positive result is due in no small part to several mega-investments totaling over €100 million. Three Munich-based startups secured such financial injections this summer: Helsing (€450 million), Egym (€180 million), and Catalym (€138 million). (We have summarized the most important financing transactions of the past quarter here.The second quarter of 2024 saw none of these mega-investments, compared to two in the same quarter of the previous year. Interestingly, these were also Helsing (€209 million) and Egym (€207 million).
The number of completed financing rounds also increased again. While 36 startups were able to attract investors in the spring of this year, this number had risen to 59 by the summer. In the same quarter of the previous year, there were 53 successful investments for Munich-based startups. The average investment amount in the summer was €18.6 million including mega-investments and €5.9 million excluding mega-investments. In the previous quarter, the figure was €7 million excluding mega-investments, compared to €3.9 million in the same quarter of the previous year.
American investors are once again heavily involved
With the large investment rounds, overseas investors also returned to Munich. The share of American funds in financing rounds for Munich-based startups in the third quarter of this year was 57 percent (€626 million), also a figure not seen since the record year of 2021. In the same quarter last year, it was 30.4 percent (€187 million). German investors contributed €235 million (21.4 percent) to the financing rounds in the third quarter, and European investors €233 million (21.2 percent). Funding from Asia played a minor role, accounting for just two percent (€21.7 million).
Acquisitions, bankruptcies and new funds in the Munich startup scene
There were no IPOs by Munich-based startups in the third quarter. Instead, five Munich-based startups were acquired by other companies. The smart parking provider Parkhere went to the software holding company Everfield, Ryte was acquired by Semrush, Instamotion was bought after its insolvency by the Czech online used car dealer Carvago, the SaaS provider Shore was acquired by the Swedish website service provider Group.one and the healthtech Wellabe went to Mavi from Austria. Three new insolvency proceedings were also opened, and provisional insolvency affected two other Munich startups. (We have summarized more about the bankruptcies of the quarter here.)
Munich startups weren't the only ones to enjoy a windfall; Munich venture capital firms were also able to raise funds during the summer. A total of 12 new funds were able to announce closings. Among others, UVC Partners its fourth fund with 250 million euros, Capmont Technology launched a 100 million euro fund, Alpine Space Ventures won 170 million euros for its first fund and the Green European Tech or GET Fund received commitments of EUR 100 million in the first closing.
