Overview

• Only 57% of founders rate Germany positively as a startup location, a decline of four percentage points from last year.
• The share who would found again has fallen to about 78%, down from 84% in 2024 and nearly 90% in 2023.
• Nearly 40% now view Germany as more attractive than the US, up six points, with the survey pointing to US risks and association chair Verena Pausder saying US policy currently benefits Germany.
• Investment in defense-technology startups reached €878.5 million in the first eight months of 2025, compared with €1.3 million in 2020.
• Founders praise proximity to universities but cite bureaucracy and limited capital, with Germany ranked 18th of 40 for venture access; findings come from a non-representative online survey of 1,846 by the Startup-Verband and the Ifo Institute.