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

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

German start-ups have an average funding requirement of four million euros. That is just under one million euros more capital than four years ago. This was reported by the digital association Bitkom after a survey of 200 tech start-ups.

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

However, few startups have been able to tap into secure pots of money yet: Three quarters of startups need new capital in the next two years. But only one in ten start-ups has already secured funding. More than 80 percent are nevertheless optimistic about getting the money they need.

"During the initial lockdown last year, there were massive concerns that startup funding would collapse wholesale," Berg says. "Fortunately, that didn't materialize. A key task in the coming legislative period will be to further improve growth financing for startups; here, Germany still has some catching up to do by international standards."