Federal Cabinet Approves Startup and Scaleup Strategy with 152 Measures

The federal government has adopted the new startup and scaleup strategy, thereby establishing the policy framework for the further development of the German startup ecosystem. The strategy aims to make it easier to launch startups, help growing companies scale up more quickly, and retain innovative companies in Germany over the long term. In total, the strategy comprises 152 measures across eight areas of action, which are to be implemented before the end of this legislative term.

Federal Minister of Economics Katherina Reiche describes the strategy as the foundation for the next generation of German global market leaders. In addition to a consistent reduction of red tape, the strategy aims in particular to create better financing conditions, accelerate the transfer of research into marketable companies, and provide targeted support for future technologies such as artificial intelligence. For the first time, the federal government is also explicitly including startups from the security and defense industries as part of its innovation strategy.

The strategy was developed in close collaboration with the startup ecosystem. Approximately 300 comments from an online consultation, as well as the results of ten stakeholder workshops with around 200 participants, were incorporated into the strategy’s development.

The initiative is driven by the continued strong momentum in the German startup market. In the first half of 2026, 3,053 startups were founded; at the same time, German startups now employ around 522,000 people, and Germany is home to 36 unicorns. At the same time, the federal government continues to identify significant challenges regarding access to growth capital, the shortage of skilled workers, research transfer, and the removal of regulatory barriers. The implementation of these measures will be accompanied by continuous monitoring. The federal government plans to issue annual progress reports and intends to regularly evaluate and further develop the strategy.

The Key Measures of the Startup and Scaleup Strategy

More Growth Capital for Startups and Scaleups

A key focus is on financing. Plans include, among other things, the continuation of the Zukunftsfonds (Future Fund) as part of the Deutschlandfonds (Germany Fund), new scale-up investments, additional financing options for DeepTech, BioTech, and DefenseTech companies, and programs for first-of-a-kind investments. In addition, institutional investors such as insurance companies and pension funds are to be made more open to venture capital.

Accelerating the Transformation of Research into Successful Companies

Spin-offs from universities and research institutions are to receive even greater support in the future. This includes expanding the EXIST Startup Factories, further developing the EXIST program, implementing a national IP strategy, establishing real-world labs for innovation, and launching additional funding programs for research-intensive future technologies. The goal is to translate scientific findings into marketable companies more quickly.

Reducing bureaucracy and accelerating startup formation

The “Faster Start-ups” initiative aims to make starting a business easier and more digital. Plans include expanding online notarization, simplifying registration procedures, and implementing further measures to reduce administrative hurdles for startups.

Better Conditions for Skilled Workers and International Scaling

The strategy includes measures to attract international talent, improve employee stock ownership, and strengthen the international networking of German startups. At the same time, the “Startup Germany” initiative will be expanded to raise Germany’s international profile as a hub for innovation and to support scaleups in their international growth.

Security and defense technologies to be included in startup support

For the first time, the federal government is systematically integrating companies from the security and defense industries into its startup policy. Plans include specialized equity and venture capital instruments, funding programs through SPRIND, and faster procurement and innovation processes. This is intended to ensure that security-related technologies have the same access to funding instruments in the future as other future-oriented industries.

The complete catalog of measures can be downloaded from the German federal government’s website.