Investors put less money into German start-ups

While investors in other European countries put more money into start-ups, they held back in Germany.

The volume of financing in German start-ups fell by 15 percent last year to just under 5.3 billion euros. This was reported by Deutsche Presse Agentur on the basis of a study by Ernst & Young (EY). France and the UK, on the other hand, saw an increase: Founders from France received just under 5.2 billion euros in 2020 - an increase of 3.4 percent. The UK is Europe's frontrunner. Investors there poured 13.9 billion euros into start-ups. That is a quarter more than in 2019.

According to the study, Berlin has fallen back to third place as a start-up metropolis. London is the leader with an investment volume of 10.5 billion euros, followed by Paris with 3.9 billion euros. Berlin start-ups received three billion euros in 2020. Munich is in 6th place in the ranking.

In Europe as a whole, investment volumes have increased, reports Deutsche Presse Agentur, referring to the study. European start-ups were able to raise almost a fifth more in financing, totaling 36.5 billion euros. The number of investment rounds has more than doubled to a total of 6,700. The German start-ups with the most investor money last year were the used car dealer Auto1, the air cab start-up Lilium and the scooter rental company Tier.