Young companies from Germany received more than seven billion euros from investors in 2024. This is nearly a billion more than in the twelve months before (plus 17 percent). After two years of decline, the investment volume is rising again. The number of financing rounds, however, continues to fall: 755 deals represent twelve percent fewer transactions than in 2023 (861). This is shown by the Startup Barometer from audit 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 financing volumes of at least 50 million euros each – eight more than in the previous year. The number of transactions for deals between 10 and 50 million euros increased from 95 (2023) to 102 (2024).
Investment volume: Bavaria takes top spot
Bavarian startups received more than 2.3 billion euros in venture capital in 2024 – and for the first time in the study period, more than Berlin startups. These achieved around 2.2 billion euros. In the top 10 of the largest investment volumes, five Munich startups are found, but not a single Berlin startup. With 450 million euros in venture capital, Helsing leads the ranking. According to Munich Startup Insights, just the ten largest Munich financing rounds total over 1.4 billion euros.
However, according to the EY Startup Barometer evaluation, Berlin remains ahead in the number of financing rounds – despite a decline of ten percent to 256 financings. This is followed by Bavaria with 164 financing rounds (minus five percent) and North Rhine-Westphalia with 78 rounds (minus 31 percent).
Thomas Prüver, partner at EY, comments:
“The fact that Bavaria has overtaken Berlin in financing volume for the first time is due to the tech and AI boom – Bavaria is leading here. At the same time, we see a significant decline in e-commerce investments, Berlin’s traditional strength.”
Nevertheless:
“Berlin remains one of Europe’s most important startup metropolises, with a very diverse and varied mix of young companies from the most diverse sectors. The fact that the capital continues to achieve the highest number of deals underscores this.”
Large investment volumes in AI startups
Artificial intelligence remains one of the most promising topics from investors’ perspectives. Startups in the software & analytics sector achieved an investment volume of 2.2 billion euros, almost 200 million more than in 2023. This is followed by the health sector, whose startups realized a total volume of 958 million euros. This is more than double the previous year. Third place is held by the energy sector. Startups from this sector were able to raise 841 million euros in venture capital, just under 160 million euros less than in 2023.
