Overview

• The start-up business-climate index fell to 31.7 from 39 in 2024, the weakest reading since 2020, based on a survey of 1,846 firms conducted from June to August.
• Founders report that a stagnating economy and cutbacks in innovation by established companies are making business more difficult.
• About 52% expect better business within six months, though nearly half rate their current situation only satisfactory and 15% describe it as poor.
• Access to investor capital has eased slightly yet Germany still trails peers, with the US investing roughly four times as much relative to economic size since early 2023, the UK three times and France 1.5 times, prompting calls for stronger federal action.
• Despite headwinds, the number of billion-euro start-ups has risen to 31, aided by AI-driven deals, with DeepL, Trade Republic and Helsing among the most valuable.