Tech start-ups need an average of four million euros in capital

The financial requirements of German start-ups are increasing. Three quarters of tech start-ups will need money in the next two years.

German start-ups need an average of four million euros in funding. That is almost one million euros more capital than four years ago. This was reported by the digital association Bitkom following a survey of 200 tech start-ups.

"Many start-ups have ambitious growth targets and want to expand internationally - this is also reflected in their increasing capital requirements. More start-ups are successful and have reached the growth phase, which means that financing rounds are becoming larger," says Bitkom President Achim Berg. "These financing rounds are important and must succeed so that we can retain and develop fast-growing start-ups with their innovative solutions and highly qualified jobs in Germany."

However, very few start-ups have already been able to tap into secure pots of money: Three quarters of start-ups will need new capital in the next two years. But only one in ten start-ups has already secured funding. However, more than 80 percent are optimistic that they will get the money they need.

"During the first lockdown last year, there were massive concerns that start-up financing would collapse across the board," says Berg. "Fortunately, that didn't turn out to be the case. A key task in the coming legislative period will be to further improve growth financing for start-ups, where Germany still has some catching up to do compared to other countries."