All data on the Munich startup scene below comes – unless stated otherwise – from our Data & Insights Dashboard. Those wanting to learn more can search the database themselves for further insights.
The third quarter of 2023 brought both highs and lows for the Munich startup scene. Startups in and around Bavaria’s capital raised around 583 million euros – significantly more than in Q2 (394 million euros). The same quarter the previous year came in at 643 million euros, only slightly higher. For all periods considered, it should be noted that some financing rounds did not disclose figures, which means the final sums could be even higher.
Summer also saw large financing rounds completed once again. Helsing raised 209 million euros in its Series B, and Egym received 207 million euros in its Series F. (We have summarized the most important financings of the past quarter here.) The second quarter, by contrast, saw only one financing over 100 million euros, as did Q3 2022. The success of Helsing and Egym was crucial to the positive development of July through September. Excluding these mega-rounds, the third quarter of this year only comes to 167 million euros – the lowest figure since Q2 2020, when only 148 million euros were raised at the start of the Corona pandemic.
Average investment amount continues to fall
The number of completed financing rounds also continued to decline in the third quarter. Only 36 startups managed to convince investors during the summer. While this is not unusual in itself, as Q3 typically sees less activity than other quarters due to summer holidays, summer 2023 was – measured by completed financing rounds – the weakest since 2016.
As a result, the average investment amount (excluding mega-rounds) also collapsed. July through September came to just 4.4 million euros per financing on average this year. In the three months prior, it was still 6.4 million euros. The same quarter the previous year averaged 5.3 million euros.
US investors show renewed interest in Munich startups
Summer 2023 also continued positive trends that emerged in the second quarter. In spring this year, American investors began returning to Munich – albeit hesitantly – after having largely withdrawn from the capital. In Q1, the share of American money in financing rounds for Munich startups was a meager 4.8 percent (33.5 million euros). It increased to 28.2 percent in Q2 (111 million euros). In Q3, the share continued to grow and reached 37.7 percent (220 million euros.)
Exits, insolvencies, and new funds
In terms of exits, the third quarter also saw considerable activity. For example, the AI assistant Askbrian was acquired by Think-Cell, Adivo became part of Zoetis, and Magazino was acquired by Jungheinrich. In total, twelve Munich startups changed hands between July and September. There were no IPOs in this quarter.
Insolvencies affected Xpay, Franka Emika, and The Football Company, among others, during the summer. Additionally, the insolvency proceedings for Sono Motors continued. In total, eight Munich startups had to file for insolvency in Q3, one fewer than in spring. (We have summarized more information about the quarter’s insolvencies here.)
The Munich startup ecosystem saw only one new investment fund in the third quarter of 2023. Golding Capital Partners announced the first closing of its “Golding Secondaries 2022” fund with 170 million euros. The fund’s target volume is 500 million euros, roughly double its predecessor “Golding Secondaries 2019,” which closed at 280 million euros.
