Despite economic challenges, Germany’s startup landscape is developing positively. In 2024, 2,766 startups were founded – 11 percent more than in the previous year (2,498). This is evidenced by the latest data from the “Next Generation – Startup New Formations in Germany” report series, which the Startup Association published together with Startupdetector. This makes 2024 the second-strongest founding year, surpassed only by the peak value in the Corona year 2021.
Helmut Schönenberger, deputy chairman of the Startup Association board, says:
“Times of crisis are times of founding. The current figures are a strong signal for Germany as a location. In times of crisis, particularly resilient and competitive companies emerge. The future federal government should support this dynamism and make startups a priority. Germany must become a magnet for top talent and offer technology startups optimal growth conditions.”
Software remains the driving force in new business formations
With 618 new business formations in 2024, more than one in five new startups are created in the software sector. The rapid development of technologies such as artificial intelligence is accelerating this trend.
Felix Engelmann, co-founder of Startupdetector, explains:
“The software sector once again proves to be the driving force of the German startup landscape. Right now, startups are developing solutions that will advance the entire economy and make an important contribution to addressing current challenges.”
The EdTech and gaming sectors, which had two difficult years after the Corona boom in 2021, are also growing again. Food and e-commerce startups are stabilizing in terms of new formations, but increased insolvencies are being observed particularly in these sectors.
Great potential at research-oriented locations
The positive development of new business formations is evident across the entire country. While the startup hotspots of Berlin and Munich remain by far the strongest locations, on a per capita basis, smaller cities are also among the top performers. Growth is particularly evident where universities and research institutions shape the ecosystem. Their importance is also highlighted by startup density: Heidelberg leads the list of new formations per capita and, like Munich (in second place), Aachen, Darmstadt, and Potsdam (in fourth to sixth place), benefits from proximity to research.
The Startup Association makes the full report available on its website.
