2025 marks a record year for startup foundations in Germany. A total of 3,568 new startups were established nationwide. This represents an increase of 29 percent compared to 2024 and even exceeds the previous record year 2021. This development is documented in the report “Next Generation – Startup Foundations in Germany,” published by the Startup Association together with Startupdetector.
Bavaria plays a key role. With 785 new foundations, 22 percent of all new startups were established in the Free State. This puts Bavaria significantly ahead of North Rhine-Westphalia and Berlin in the state comparison. Nearly all federal states recorded growth, with particularly strong increases in Bavaria, North Rhine-Westphalia, and Saxony.
Munich ranks first in founding rates per capita
Within Bavaria, Munich stands out clearly. With 19.3 new foundations per 100,000 inhabitants, the state capital leads the nationwide ranking and further extends its lead over Berlin. The capital achieves 16.8 foundations per 100,000 inhabitants. In previous years, the values of the top group were significantly closer together than in 2025.
However, founding dynamics are not exclusively concentrated in Munich. Other regions in the Free State are also developing actively. Bavaria’s Economic Minister Hubert Aiwanger says:
“Our goal is that anyone with a good idea can found a company where they live. We fulfill this aspiration with our 19 Digital Founder Centers at 30 locations and an additional 19 technology-oriented founder centers throughout Bavaria.”
AI drives founding numbers upward
In terms of content, technology-driven business models characterize the founding landscape. The software sector records the largest absolute growth with 853 new foundations. Medicine and food also show significant increases. Artificial intelligence plays a central role: 27 percent of all newly founded startups use AI as an important component of their business model. This trend is particularly strong in software and medicine, for example in image recognition or the analysis of medical data.
Kati Ernst, deputy chairwoman of the Startup Association, puts the development into perspective:
“The record numbers show the potential that exists in Germany. Our excellent research plays a key role as a starting point for innovation and new startups. If we make it easier for startups to emerge from science and prioritize innovation, that can give our economy additional momentum. But: When it comes to scaling companies, we have weaknesses in Germany. This is evident, among other things, in growth financing. Here we need to improve the framework conditions noticeably and quickly.”
The Startup Association makes the complete report available for download.
