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German Start-Up Funding Rises to €8.4 Billion in 2025 as Bavaria Extends Lead

EY reports a 2025 rebound concentrated in mega-rounds, with Bavaria leading.

Overview

  • EY tallies €8.4 billion invested in 2025, up €1.3 billion (19%) from 2024.
  • Bavaria drew about €3.3 billion versus Berlin’s €2.7 billion, with seven of the ten largest rounds based there.
  • Mega-financings drove the rebound, including 18 rounds of at least €100 million, while smaller deals declined.
  • The number of rounds fell 5% to 716, even as software/AI (€2.7bn), energy (€1.2bn) and health (€1.1bn) led sector totals.
  • The second half slowed to €3.8 billion, and EY warned the trend is unclear, while KfW’s separate estimate put 2025 at €7.2 billion.