Current data from the report series “Next Generation – Startup Startups in Germany”, which the Startup Association has published semi-annually since 2022 together with Startupdetector, are turning heads in the scene: In the first half of 2026, more than 3,000 new startups were founded in Germany in just six months. This corresponds to an increase of 52 percent compared to the second half of 2025.
“Over 3,000 new startups in six months – Germany has never seen this much founding momentum,”
says Verena Pausder, board chair of the Startup Association, and adds:
“AI significantly lowers the barriers to entrepreneurship and more and more people are taking advantage of this opportunity. For the startup boom to become a growth boom, policy makers need to deliver on capital – otherwise the ideas are created here and the champions elsewhere.”
Startup boom: June 2026 breaks all records
June 2026 was the strongest founding month since the start of the survey in 2019, with over 600 new startups. Current founding activity is thus roughly double the long-term average. The development is driven primarily by the AI boom, but also by the overall economic situation and a restrained labor market, which makes founding one’s own company more attractive for many skilled workers.
AI drives strongest startup boom since 2019
The current upward trend, which had already begun in mid-2025, is accelerating further. Founding activity is now roughly double the long-term average and can no longer be limited to individual startup hotspots.
“The startup boom is no longer a phenomenon of individual hotspots. We are seeing the largest increases precisely where startups meet strong industry and excellent universities – from Hamburg through Hesse to Baden-Württemberg.”
says Felix Engelmann, co-founder of Startupdetector.
All federal states growing – Hamburg with the strongest push
The founding wave is affecting the entire country: The number of new startups is increasing in all 16 federal states, led by Bavaria (626 new startups, 48 percent more than in the second half of 2025), followed by North Rhine-Westphalia with 539 and thus a gain of 45 percent, as well as Baden-Württemberg with 377 new startups (corresponding to an increase of 55 percent).
But the winner of the half-year is Hamburg: Founding activity in the Hanseatic city is growing by 83 percent to 212 new startups, and in absolute numbers, more startups are being founded in Hamburg than in Munich for the first time in several years. Berlin remains Germany’s strongest founding city with 429 new startups, but is growing at 21 percent, significantly slower than many other startup locations.
Munich remains top city for startups per capita
In relation to population, Munich maintains its top position among Germany’s major cities. They are followed by:
- Munich
- Berlin and Düsseldorf (tied)
- Aachen
- Frankfurt am Main
- Hamburg
- Potsdam
- Cologne
- Heidelberg
Notably, university locations such as Aachen, Potsdam, and Heidelberg have a strong presence and are further expanding their role as founding centers.
Every third new startup focuses on AI
Artificial intelligence is the central driver of the boom: 1,038 of the newly founded startups have a clear AI connection, more than every third and thus more than in the entire year 2025. The software sector remains by far the strongest industry with 844 new startups. But the startup boom is evident in other fields as well: Medicine with 274 and the food sector with 181 new startups are among the strongest fields – AI applications and associated technological advances are also important drivers of development here.
128 new startups can be attributed to the industrial sector – an increase of 125 percent compared to the second half of 2025. Particularly in the context of increased challenges in transforming established industry toward climate neutrality and the current question of how German industry can continue to compete globally, this is an exciting development.
36 unicorns – but exits are heading to the USA
There are also changes at the top of the ecosystem: Six new unicorns have been added since the start of 2026. In total, Germany now has 36 startup companies with billion-dollar valuations. However, the international comparison shows the continuing gap compared to the USA – there are around 900 unicorn startups. Most recently, Tubulis and Contentful were both acquired by US corporations, with both being German unicorns.
Verena Pausder says:
“For global champions made in Europe, we need a strong European capital market. The WIN initiative must become a priority in government action, and existing tax and regulatory obstacles to venture capital must be replaced with incentives. The federal government is moving in the right direction with its pension reform: now we must ensure that venture capital is firmly anchored in all three pillars of retirement provision.”
