Overview

• The number of German startups valued at over €1 billion, known as unicorns, has risen from 11 in 2019 to 28 by the end of 2024, though still short of the 2023 peak of 34.
• Key sectors driving this growth include artificial intelligence, cloud computing, and defense, with notable startups like DeepL, Flix, and Celonis leading the way.
• Despite the growth, challenges persist, including a €30 billion annual funding gap and heavy reliance on U.S. venture capital for large-scale investments.
• Calls have been made for more exit opportunities, such as IPOs and acquisitions, to reinvest capital into new startups and reduce dependence on non-European markets.
• Germany's startup ecosystem has gained political attention, with increased venture capital initiatives, though experts argue that current efforts remain insufficient to sustain long-term growth.