Munich Startup
More and more German startups are being sold abroad

More and more German startups are being sold abroad

Simon Tischer

Simon Tischer

The number of acquired German tech startups reaches a record high. The lion’s share of acquired startups goes to Europe and German companies.

March 23, 2023

2 min. read time

The number of acquisitions of German startups rose from 171 in 2021 to 203 last year, according to a study by consulting firm EY. 65 acquisitions of German startups, roughly one third, were carried out by German companies. 138 German startups were acquired by foreign companies, of which 78 from Europe, 53 from the USA. The share of North American companies in the acquisitions of German startups from abroad thus fell by 15 percentage points compared to the previous year, from 53 to 38 percent. At the same time, the share of acquisitions by European companies rose from 44 to 57 percent – an increase of 13 percentage points. The remaining seven international foreign acquisitions in 2022 went to companies from Asia, with the share rising from three to five percent.

Sale abroad: “a sign of how competitive domestic startups are”

Thomas Prüver, partner at EY, says:

“2022 was a challenging year, not only for startups, but for the economy as a whole. Interest rate turnaround, economic slowdown, the phasing out of pandemic effects – all of this led to valuations being corrected downward and profitability coming more to the fore.”

According to Prüver, there was not a single IPO of a German startup in 2022. In 2021 there were four IPOs and five SPACs.

“Since IPOs ceased to be an exit option for investors, M&A transactions came into sharper focus. Additionally, some startups that had difficulty raising fresh capital became acquisition targets.”

The number of acquisitions thus increased significantly compared to the record year 2021. Interest from foreign investors was particularly strong.

“A clear sign of how competitive domestic startups and their ideas and business models are in international comparison. At the same time, however, an alarm signal to policymakers, as this means much innovation potential is flowing out of Germany”,

says Prüver.

Particularly many acquired startups operate in software & analytics. 66 transactions were conducted here. In second place, with 30 acquisitions, is the e-commerce sector.

More like this

Related Articles to Read Next

Five New Launches: Isar Aerospace Fills Its 2028 Flight Schedule
Deals

Five New Launches: Isar Aerospace Fills Its 2028 Flight Schedule

22.09.26
3 Min.
Multi-Million Deal for Munich AI Startup Grubel
Deals

Multi-Million Deal for Munich AI Startup Grubel

22.09.26
4 Min.
Code Gaia Takes Over Global Climate Clients
Deals

Code Gaia Takes Over Global Climate Clients

22.09.26
3 Min.
€2.7 Million for Depotcharge
Deals

€2.7 Million for Depotcharge

21.09.26
4 Min.
Arcos Secures Millions in Funding for Integrated Security Infrastructure
Deals

Arcos Secures Millions in Funding for Integrated Security Infrastructure

21.09.26
3 Min.
Faster Wildfire Detection: Ororatech Partners with Eutelsat
Deals

Faster Wildfire Detection: Ororatech Partners with Eutelsat

18.09.26
3 Min.
Proxima Fusion plans 140 million euro factory for superconductors in Lower Saxony
Deals

Proxima Fusion plans 140 million euro factory for superconductors in Lower Saxony

17.09.26
5 Min.
Up to 760 Million Euros: The Exploration Company Wins ESA Contract
Deals

Up to 760 Million Euros: The Exploration Company Wins ESA Contract

17.09.26
3 Min.
Fryte Mobility Raises 3.5 Million Euros
Deals

Fryte Mobility Raises 3.5 Million Euros

15.09.26
4 Min.
Turned Down Google, Raised 4 Million: This is Furo
Deals

Turned Down Google, Raised 4 Million: This is Furo

14.09.26
3 Min.
Finanzchef24 Expands DFKP Partnership
Deals

Finanzchef24 Expands DFKP Partnership

11.09.26
2 Min.
Bella & Bona Expands to NRW
Deals

Bella & Bona Expands to NRW

10.09.26
2 Min.