Overview
- Foundings rose 29% from 2024, surpassing the previous peak from 2021, according to the Startup-Verband and Startupdetector report released in early January.
- Bavaria led by absolute count with 785 new firms (+46%) while Berlin remained the largest single hub with 619, and Saxony posted the strongest percentage gain at +56%.
- Munich ranked first per capita with 19.3 start-ups per 100,000 residents, ahead of Berlin, with North Rhine-Westphalia reaching 658 new companies and strong showings in cities like Düsseldorf and Aachen.
- Software accounted for the most new firms (853) and 27% of all new start-ups integrated artificial intelligence as a core part of their business model.
- KfW data show roughly €2 billion in venture flows in Q4 2025 and the scene recorded about 11% fewer insolvencies than in 2024, even as scaling finance remains a structural challenge.