Cologne startup balance sheet 2023

Innovative despite decline: Cologne has 27% fewer start-ups, but scale-ups are flourishing. The 35% increase in investment volume underlines the stability of the scene

The startup scene in Cologne recorded a decline in new startups in 2023, while at the same time scaleups showed impressive growth. With 67 new startups, there were 27% fewer startups than in the previous year. This trend is similarly reflected in other major German cities, including Berlin and Munich. The dominant sectors for start-ups in Cologne were medicine, software, food, e-commerce and education, which is in line with the nationwide trend.

The KölnBusiness business development agency offers services specifically tailored to start-ups in order to provide them with targeted support. There are a total of 735 young companies in Cologne. The results were presented by Dr. Manfred Janssen, Managing Director of KölnBusiness Wirtschaftsförderung, on January 25 during the Matching Day, the highlight of the Cologne Masterclass.

Financing volume increases significantly

Despite the decline in the number of start-ups, the financing scene in Cologne recorded impressive growth. The financing volume for Cologne start-ups rose by 35% to around 222 million euros in 2023. This increase took place despite a general financing crisis among German start-ups, according to the Ernst & Young Startup Report. The AI company DeepL, which closed a financing round of around 100 million euros in the first half of 2023, played a key role in this.

Growth in the scaleup sector is particularly pleasing. Of the 735 startups, around 9% are now considered scaleups, which corresponds to a doubling compared to 2021. These companies employ more than 50 people. The proportion of female founders is also rising steadily, with 22% women in the founding teams in 2023 compared to 17% in 2022.

The current challenging times are also having an impact on Cologne as a business hub. However, Cologne's startup ecosystem is proving its resilience and innovative strength.

Dr. Manfred Janssen, Managing Director KölnBusiness

The total number of startups in Cologne thus rose to 735, although the number of new startups declined. The positive trend is also reflected in the rising investment volume and the increasing influence of scaleups and women as founders. KölnBusiness Managing Director Dr. Manfred Janssen emphasized that although the current challenging times are affecting Cologne as a business metropolis, the Cologne startup ecosystem is proving its resilience and innovative strength. He emphasized that Cologne continues to offer excellent framework conditions for the growth of innovative companies. In order to further strengthen the start-up location, KölnBusiness supports entrepreneurs in all phases with a wide range of services - from founding and local growth to international expansion.