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Number of New Start-Ups on the Rise in Germany

The leading German sector organization says that 15 percent more fledgling firms were formed in the first half of 2024 than in the preceding six months.

In its new report, the German Start-Up Association said 1384 young companies had been founded in the first half of this year and wrote of a “turn-around.”

“After a steep decline in mid-2022, this indicates a positive trend,” the organization wrote.

Every fifth German start-up works in software. The growth there (35 percent) is being driven by Germany’s increasing digitalization and more frequent use of artificial intelligence, especially in the B2B sector. 

Berlin and Munich remain the two clear leading hubs, but the report also highlights Germany’s many university towns and cities as hotspots of creative business ideas.

“The significant rise in the number of newly founded companies shows how strong the entrepreneurial spirit in Germany is,” said the association's deputy chairman Helmut Schönenberger. “The positive development throughout all regions is a good sign, and the boom in the software sector is particularly encouraging since it provides major impulses for digitalization.”

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