Financing boom for start-ups

Start-ups in Germany received record sums of money in 2021 - this was determined by EY. A particularly large amount of money flowed to Berlin and Bavaria.

Start-ups received almost 17.4 billion euros in venture capital from investors in 2021. This is the result of the consultancy EY, which annually analyzes venture capital investments in this country. Initially, the news agency DPA , among others, had reported on this.

This means that founders raised more money than ever before. The number of financing rounds rose by 56 percent. Most of the money flowed into the finance, online retail and software sectors.

The corona pandemic has boosted trends such as home offices, online shopping and streaming, driving digitization. According to EY, this has particularly benefited startups, as they are often based on technology-based concepts. Investment pressure from investors in the pandemic has quadrupled the number of large deals for startups.

This boom benefited founders in Berlin in particular, where €10.5 billion in venture capital was invested. Second place went to Bavaria, where 4.4 billion was invested. The biggest deals of the year also went to Berlin and Bavaria. Berlin-based food delivery service Gorillas received 861 million euros, while Munich-based software provider Celonis received 830 million euros.