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 more than 97,000 IT companies.

In 2018, there were 621 venture capital investments into German start-ups with a total volume of EUR 4.6 billion. This is an increase of 7% compared to the previous year’s investment levels. The majority of this new investment went to Berlin start-ups (EUR 2.6 billion), followed by Bavaria (EUR 802 million) and Hamburg (EUR 548 million) respectively.

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