German startups raise around 8.4 billion euros in venture capital in 2025

Startups from Germany raised around 8.4 billion euros in venture capital in 2025. This corresponds to an increase of 19% compared to 2024 and marks the third-highest figure in the history of the German startup ecosystem. Following the sharp slump in 2022 and 2023, the upward trend in investment volume is thus continuing for the second year in a row.

Fewer deals, bigger tickets

Despite the increase in the investment volume, the number of financing rounds fell again: at 716 deals, five percent fewer transactions were recorded than in the previous year (755). This is already the fourth year in a row with falling deal numbers. By comparison, 1,160 financing rounds were recorded in the record year of 2021.

The main drivers of capital growth are large financing rounds. In 2025, 18 mega deals with over 100 million euros each were counted, six more than in the previous year. At the same time, the number of small financing deals of up to one million euros continued to fall, an indication of the persistently difficult situation for very young start-ups.

First half of the year significantly stronger than the second

A look at the course of the year shows a clear dichotomy: while 398 financing rounds with a volume of 4.6 billion euros were registered in the first half of 2025, the number of deals fell to 318 rounds with an investment volume of 3.8 billion euros in the second half of the year. The last time there were so few transactions was in 2018.

Bavaria overtakes Berlin in terms of capital raised

There is a further regional shift in the German startup ecosystem. Bavaria raised the most venture capital in 2025 with €3.3 billion and further expanded its position. Berlin follows with just under €2.7 billion, but remains the leader in terms of the number of financing rounds (218 deals compared to 148 in Bavaria).

Seven of the ten largest financing rounds of the year went to start-ups from Bavaria. Helsing (AI/defense) once again achieved the largest single round with €600 million, followed by Green Flexibility (energy) and Tubulis (biotech).

AI, energy and health as growth drivers

In terms of content, technology start-ups dominate the investment scene. Companies from the software & analytics sector (including AI) raised around EUR 2.7 billion, an increase of 20%. The energy sector grew particularly strongly, reaching 1.2 billion euros (+43%), followed by health start-ups with 1.1 billion euros (+12%).

According to EY, the technology sector is thus increasingly developing into the central growth engine of the German start-up landscape. At the same time, investors' expectations are rising: not only technological visions are in demand, but also demonstrable economic effects and scalability. Thanks to EY for the exciting EY Startup Barometer January 2026 study, which made these insights possible.