A total of 2,558 startups were newly founded in Germany last year, of which 491 in Bavaria, according to the Startupdetector report. The Free State ranks first among the federal states, closely followed by Berlin (490) and North Rhine-Westphalia (421). Compared to the previous year, however, these figures represent a renewed decline in startup new foundations both nationwide and for the states. While the number of new startups in Germany fell by ten percent, the decline in NRW and Berlin was twelve percent each, and in Bavaria even seventeen percent. Only a few federal states achieved growth last year, most notably Saxony, where the number of startup new foundations grew by 35 percent to 93.
Munich region leads in startup new foundations per capita
When looking at startup ecosystems rather than the federal states themselves, a more differentiated picture emerges. Berlin leads here with 490 startup new foundations, followed by the city of Munich (194) and Hamburg (163). The Munich district (55 new foundations) and Starnberg district (21 new foundations) that are part of the Munich ecosystem also make the top 15 – as the only districts among cities. Measuring new foundations per 100,000 residents, Munich district leads with 15.7 startups per 100,000 residents, followed by Starnberg (15.4) and Berlin (13.3). The city of Munich has 13.0 startup new foundations per 100,000 residents and ranks fourth. Fifth place goes to Karlsruhe with 10.4 new foundations.
The Munich ecosystem also ranks high in the list of most funding rounds per 100,000 residents. However, the ranking is led by Jena with 16.3 funding rounds. This is followed by the city of Munich (14.7), Munich district (14.0), Berlin (13.3), and Starnberg (13.2). The total number of funding rounds was 487 in Berlin, 219 in Munich, and 138 in Hamburg. In Bavaria, a total of 403 funding rounds were successfully completed in 2023, with third place in the state comparison going again to North Rhine-Westphalia with 284.
Bavaria, land of the angels
According to the Startupdetector report, no federal state has more business angels investing in startups than Bavaria. A total of 1,330 investors come from the Free State, followed by NRW with 989 and Berlin with 896. A large proportion of Bavarian angels live in the city of Munich (538), but many are also based in Munich district (155) and Starnberg district (81). The report states:
“The hotspot for business angels is and remains Munich and its surrounding area. Starnberg district, which grew considerably again, has by far the highest angel density in the country with almost 60 angels per 100,000 residents.”
