Number of Billion-Dollar Startups in Germany More Than Doubled Since 2020

Germany's tech sector has seen rapid growth in unicorn startups, but challenges like funding gaps and reliance on U.S. investors remain.

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.