Modern office Buildings in Frankfurt, Germany Modern office Buildings in Frankfurt, Germany | © Getty Images/Westend61

Private Equity and Venture Capital

There are around 300 associate companies that invest in more than 1,000 companies per year resident in Germany. More than 5,000 companies are managed in the portfolios in total.

In 2019, private equity (PE) investment totaled EUR 14.3 billion, with investments being made in a total of  951 companies. Venture capital (VC) was invested in almost 60% of the companies.

Private Equity Investments

The ICT sector accounts for 34 percent of all industry sector funding in 2019, followed by the enterprise products & services and energy & environment sectors with 18 percent respectively.

A geographical breakdown of private equity investment by federal state puts Bavaria out front with EUR 3,900 million for the year. Berlin makes up the running (EUR 3,171 million), followed by Hessen (EUR 2,253 million), North Rhine-Westphalia (EUR 1,665 million), and Baden-Württemberg (EUR 1,475 million).

Source: German Private Equity and Venture Capital Association e.V. (BVK) 2020

Private Equity - Investment in Germany by Financing Phase (in mio EUR)
Private Equity - Investment in Germany by Financing Phase (in mio EUR) | © German Private Equity and Venture Capital Association BVK
Private Equity - Number of Financed Companies by Financing Phase
Private Equity - Number of Financed Companies by Financing Phase | © German Private Equity and Venture Capital Association BVK

VC Investments

According to an EY study, most venture capital in 2019 was invested in Mobility companies (EUR 1,605 million) followed by the FinTech/InsurTech (EUR  1,316 million) and Software & Analytics (EUR 1,221 million) segments.

Countrywide, Berlin secured the most VC investment funding with EUR  3,691 million in 2019 according to the EY study. The German capital was followed by Bavaria (EUR 1,549 million), North Rhine-Westphalia (EUR 268 million), Hamburg (EUR 254 million) and Baden-Württemberg (EUR 209 million).

Source: EY “Start-up-Barometer Deutschland” 2020

Find out more about public equity capital in Germany within our Investment Guide.

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