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

Private Equity and Venture Capital

There are around 400 associate companies that invest in more than 1,000 companies per year resident in Germany. More than 5,500 companies are managed in the portfolios in total.

In 2020, private equity (PE) investment totaled EUR 12.6 billion, with investments being made in a total of 1,050 companies. Venture capital (VC) was invested in more than 60% of the companies.

Private Equity Investments

The ICT sector accounts for 39 percent of all industry sector funding in 2020, followed by the enterprise products & services (16%) and energy & environment sectors (15%).

A geographical breakdown of private equity investment by federal state puts Bavaria out front with EUR 4,229 million for the year, followed by Berlin (EUR 1,575 million), North Rhine-Westphalia (EUR 2,683 million), and Hessen (EUR 1,206 million).

Source: German Private Equity and Venture Capital Association e.V. (BVK) 2021

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 2020 was invested in Mobility companies (EUR 1,158 million) followed by Software & Analytics (EUR 1,040 million) and E-Commerce (EUR 976 million) segments.

Countrywide, Berlin secured the most VC investment funding with EUR  3,059 million in 2020 according to the EY study. The German capital was followed by Bavaria (EUR 1,509 million), North Rhine-Westphalia (EUR 196 million), Baden-Württemberg (EUR 155 million), and Hamburg (EUR 140 million).

Source: EY “Start-up-Barometer Deutschland” 2021

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

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