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The Next Generation Report shows a record year for startup foundations. Munich in particular sets standards: nowhere else are more new startups created per capita. The location expands its lead and shapes nationwide momentum.

With 11 percent more new business formations than the previous year, the “Next Generation – Startup New Formations in Germany” report shows that times of crisis spur innovative business ideas. Software startups in particular are driving development forward, while research-oriented locations offer great potential.

In the current analysis of startup new foundations and funding rounds in Germany by Startupdetector, the Munich ecosystem lands on top places again – and not just in terms of new foundations per capita. The location also stands out when it comes to funding rounds and business angels.

Last year, 2,489 startups were founded in Germany – nearly five percent fewer than in the previous year. The startup capitals of Berlin and Munich also experienced a further decline in founding activity. This is the conclusion of a study by Startupdetector and the Startup Association.

Across Germany, 2,618 startups were founded last year – 18 percent fewer than in 2021, when there were still 3,196 startups. However, the decline in founding activity is not evenly distributed across the country. Munich has overtaken Berlin in startup formations per 100,000 residents for the first time.