Q1 2021 was one for the record books in terms of venture capital invested in German start-ups.
Business consultants KPMG’s “Venture Pulse” report found that fledgling German firms took in USD 3.1 billion in financing rounds during the first three months of this year. That was compared to only USD 1.2 billion in the first quarter of 2020 – a massive increase.
“Here in Germany, the valuations of businesses in key industries like SAAS, e-commerce and logistics are rising” said KPMG partner Tim Dümichen. “The valuations are greater because these business models mature quickly. They are now proven commodities because they do well under real conditions. The valuations of businesses in early stages, however, are quite low because VC investors are still putting their money into secure companies and less risky sectors.”
KPMG notes that the venture capital boom in Germany is part of a larger global trend.