16% more startups in 2023

Startups in Germany increased by 16% in the first half of 2023, with Berlin standing out particularly positively with an increase of 40%, while Munich remains close to the top.

Berlin - In the first six months of 2023, the FRG recorded a 16% increase in startups. This is according to the current report series "Next Generation - Startup New Foundations in Germany", conducted by the Startup Association and startupdetector.

In the first half of 2023, significantly more startups were founded again. After the slump in startups in 2022, this is an important signal for the economic and innovative strength of our country.

Christian Miele, Chairman of the Board Startup Association

4 Key findings of the report

First, startup foundings increased to nearly 1,300 new startups compared to the second half of 2022. This 16% increase signals a positive development and marks a trend reversal after last year's startup slump.

The report's second finding is particularly encouraging: A particularly large number of startups were founded in June 2023. This sign of a return to the positive momentum of earlier years is a further indication that the startup scene is recovering.

Thirdly, Berlin is making significant gains, while Munich remains close to the top. After a massive slump in startups last year, the startup hotspot Berlin is making a comeback with a strong increase of 40%. Munich, on the other hand, is currently stagnating, but remains at the top in terms of startups per capita over the past 12 months.

Furthermore, the report shows that there is an upward trend in almost all industries. The clear winner is the tourism industry with an increase of 111%. In contrast, the blockchain and crypto sector recorded a 62% decline, making it the clear loser.

In the pandemic, new ideas in e-commerce flourished, last year green technologies developed against the negative trend, and now potentials in the tourism and mobility sectors are emerging.

Dr. Felix Engelmann, co-founder startupdetector

Last year, startups were down sharply due to economic uncertainties. The 16% increase in the first half of 2023 stops this downward trend and gives the industry a new boost. Nevertheless, the number of startups is still well below the record levels of 2021.

Berlin first, Munich still at the top

In terms of regional distribution, it can be seen that the Berlin startup ecosystem is back on the road to recovery after the slump in 2022. Munich remains close to the top in relation to the population, but the positive trend of most other regions is not reflected here. It is particularly noteworthy that Karlsruhe, Darmstadt and Heidelberg, three research-related startup locations, are represented in the top 5 in terms of startups per capita. This illustrates the great potential of the strong research landscape for the startup ecosystem here.

Despite the general recovery, there is a clear negative trend in the Blockchain and Crypto sector, indicating the current crisis in this area. In contrast, the tourism (+111%), mobility (+30%), food (+29%), and software (+23%) sectors have seen the most growth.

The current figures suggest that the German startup scene is picking up speed again and recovering from the challenges of the past year. The positive developments in Berlin and other regions show that the startup dynamic in Germany remains strong and offers a promising environment for startups. The entire report can be downloaded here.