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German Venture Capital Rebounds With €4 Billion Raised and Record 32 Unicorns

Renewed US investment plus lower interest rates have powered an AI-driven upswing that is expanding funding beyond Berlin and Munich

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Investitionen in Start-ups nehmen in Deutschland wieder deutlich zu. Das geht aus einer am Montag veröffentlichten Studie der bundeseigenen Förderbank KfW zum Einsatz von Wagniskapital hervor.
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Overview

  • German growth startups drew €2.4 billion in Q2 2025, a 45 percent jump from Q1 that lifted H1 venture capital inflows to €4 billion—the third straight half-year increase.
  • The number of unicorns rose by two to a record 32 in the first half of 2025, underscoring investor confidence despite spring’s market turbulence and US trade tensions.
  • New company formations climbed 9 percent to 1,500 in H1, fueled by an AI boom and a diversification of tech sectors.
  • Foreign backers, notably from the US, have poured about €37 billion into German startups from 2020 to 2024, rekindling large financing rounds.
  • Regional hubs in Saxony, Bavaria and North Rhine-Westphalia are emerging as growth hotspots, broadening the ecosystem beyond Berlin and Munich.