From January to June 2026, nearly 5.3 billion euros in venture capital flowed into German startups. This represents an increase of 14 percent compared to the same period last year, when investors provided around 4.6 billion euros. At the same time, the number of financing rounds fell by eleven percent to 354. This is shown by the Startup Barometer from EY-Parthenon, the strategy consulting arm of the auditing and consulting firm EY. The study is based on an analysis of investments in German startups.
For the first time, three federal states each crossed the billion-euro mark in startup investments. With almost 1.7 billion euros and a plus of ten percent, Berlin reclaimed the top spot from Bavaria. Baden-Württemberg followed with just under 1.6 billion euros. This represents an increase of 475 percent, driven in particular by a 1.2-billion-euro funding round for Neura Robotics.
Bavaria ranks third with more than 1.1 billion euros. Compared to the first half of 2025, the investment volume in the Free State thus fell by 46 percent. When it comes to the number of financing rounds, however, the picture is different: Bavaria recorded 93 deals, 21 percent more than in the same period last year. Only Berlin saw more financings, with 95 deals.
However, the figures only reflect financing through the end of June. Several particularly large Munich deals that were only announced in July are therefore not yet included in the current Startup Barometer. These include the 1.6-billion-euro Series E financing for Helsing and the 411-million-euro funding round for Proxima Fusion. Both rounds will therefore only be reflected in the evaluation for the full year 2026.
Major investments dominate the market
The increase in total volume is increasingly concentrated in a few large financing rounds. The number of deals exceeding 50 million euros rose from 15 to 17. Their share of total investment volume grew from 55 to 67 percent.
Thomas Prüver, Partner at EY-Parthenon, therefore warns:
“The significant increase in invested capital is fundamentally a positive signal for the startup ecosystem in Germany. However, it should not obscure the fact that the financing situation continues to be difficult for many young companies in this country. Investors are increasingly focusing on a few large startups and supposedly safe bets. As a result, young and small startups often lose out in the competition for capital.”
Technology-driven companies were particularly in demand. Hardware startups received more than 1.6 billion euros, software & analytics more than 1.2 billion euros. 579 million euros flowed into defencetech. Health and energy also each accounted for more than 450 million euros.
The full Startup Barometer is available to download on the EY-Parthenon website.
