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Germany: European Home of the Start-Up Scene

The German economy is largely shaped by SMEs and is home to a deep pool of entrepreneurial talent.

This well of talent has resulted in a broad and diversified economy that can be relied upon in times of economic tumult. Germany’s IT sector is also a thriving entrepreneurial environment with the majority of Europe’s Unicorns being based in Germany.

In 2021, there were 1,160 venture capital investments into German start-ups with a total volume of EUR 17.4 billion. This is an increase of 229% compared to the previous year’s investment levels. The majority of this new investment went to Berlin start-ups (EUR 10.5 billion), followed by Bavaria (EUR 4.4 billion) and Baden-Wurttemberg (EUR 599 million) respectively. 
 

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