Number of start-ups declining

For the first time since 2019, the Startup Association registered fewer startups than in the previous year. Only the medical sector is bucking the trend.

The number of new start-ups in Germany has fallen for the first time since 2019. This is according to the Next Generation Report by the German Startups Association, which the interest group presented together with Startupdetector.

According to the report, 1,508 startups were founded in the first half of 2022, which corresponds to a decrease of seven percent. This compares to 1,618 in the previous year. However, the long-term trend remains positive, with the figure for the first half of the year still 31% higher than in 2019.

Berlin and Munich dominate the field of start-ups, with the two cities accounting for 29% of all registered start-ups. The report identifies a positive trend in the medical sector. There have been 195 start-ups in this sector so far this year, 29 more than in the previous year. The sector has thus replaced the software industry as the most dynamic start-up sector.

"Our report on start-up activity shows: More start-ups - this is not a sure-fire success," explained Magdalena Oehl, Deputy Chairwoman of the Start-up Association: "If we want to maintain the positive momentum of the highly innovative start-up ecosystem, we need optimal framework conditions for young companies." Among other things, better regulations are needed for employee participation, more immigration of tech talent and easier opportunities for spin-offs from universities.