Start-ups in Hesse feel restraint from investors

Nationwide, investments in startups also declined in the first half of the year.

The level of investment in startups since the beginning of the year in Hesse is at a similar level to 2021, a spokesman for the state Ministry of Economics told the dpa. According to the report, the largest investments were in the start-ups Wingcopter (42 million), Enviria (22.5 million) and Node Energy (seven million) - i.e. in the areas of drones, solar technology and energy supply.

A recent report by the accounting firm EY found that investment in startups nationwide declined. Still, it was the second-best half-year ever, it said. In the same period last year, young companies raised 7.6 billion euros in venture capital - this year "only" about six billion euros. "We see that the trend is also downward in the start-up business climate," says Alexander Hirschfeld of the German Start-ups Association.

The Hessian Ministry of Economics still sees a willingness to invest, particularly in renewable energies and in the B2B sector. However, key interest rate increases, the Ukraine war and the energy crisis are clouding the outlook in these fields as well. Nevertheless, there is increased start-up activity, existing start-ups are more affected.