New Figures Show Massive Rise in VC Investment in German Start-Ups

November 2021

The amount of venture capital pumped into fledgling German companies in the first three-quarters of 2021 was 70 percent more than all of 2020 – that’s according to figures compiled by the online business magazine Pitchbook.

German start-ups took in EUR 11.3 billion from January to September 2021 compared with EUR 6.6 billion in 2020. Conspicuously, the number of deals didn’t record a commensurately large increase. Instead, the value of investments skyrocketed.

Much of this money came from investors outside Germany, who are more apt to back late-stage deals. But that could change.

„We can see German investors increasingly looking at later stage investments,” Florian Reichert, a partner in investment firm Picus Capital told Pitchbook. “Given our long-term investment philosophy, growth stage investments are also becoming increasingly relevant for us.“

The money is by no means being spread consistently across Germany. Berlin dominates in Q1-Q3 2021, attracting almost EUR 6.5 billion in investment, followed by Munich with nearly three billion.

Berlin © gettyImages/Rafael Dols