Green Startup Report 2026: Growth continues, momentum slows down

The Green Startup Report 2026 (GSR) shows a differentiated picture of the sustainable startup landscape in Germany. While the total number of green startups continues to rise and their technological significance is increasing, the pace of startups has recently slowed. The study is published by the Borderstep Institute for Innovation and Sustainability, which has been investigating the development of the green economy start-up scene since 2013.

Green start-ups remain an important driver of innovation

Between 2016 and 2025, 4,668 green startups were founded in Germany. This means that the green startup community has grown by six percent in a ten-year comparison. The study underlines the central role of these companies for

• the transformation to a climate-neutral economy,
• technological innovation in future markets,
• the long-term competitiveness of Germany as a business location.

The climate protection potential is particularly clear: according to the report, green start-ups reduce the relevant greenhouse gas emissions of their solutions by more than 70% on average compared to conventional technologies.

A community of now almost 4,700 innovative young companies is developing future solutions for climate protection, resource sovereignty and resilience with courage and visionary power, thereby strengthening Germany as a business location.

Prof. Dr. Klaus Fichter, Director, Borderstep Institute for Innovation and Sustainability

Proportion of new start-ups falls for the first time in years

Despite growing overall figures, there is a downward trend for the first time. The share of green start-ups in all new start-ups

• was still just under 20% in 2023,
• fell to 13% by 2025.

The report clearly shows the potential of green start-ups - as well as the importance of reliable funding and innovation-friendly framework conditions when entering the market.

Dr. Armgard Wippler, Federal Ministry for Economic Affairs and Energy

The authors see this as a signal that structural framework conditions, such as financing, regulation and market incentives, must be given greater focus in order to increase the pace of growth again.

High technological depth is reflected in patents

A key characteristic of green startups is their pronounced focus on research and innovation. 35% of funded green startups have at least one patent, whereas this proportion is only around 14% for comparable European startups.

The above-average proportion of patents is an indicator of the strong deep tech orientation of many business models, for example in the areas of energy, materials, the circular economy and mobility.

There are also differences in access to capital: on average, green start-ups receive their first external financing earlier than other start-ups. This indicates that sustainable business models are highly attractive to investors, especially against the backdrop of growing green tech markets.

Regional focuses remain clearly recognizable

The green start-up scene is heavily concentrated in just a few federal states. Berlin, Bavaria and North Rhine-Westphalia account for more than half of all green startups. In contrast, Mecklenburg-Western Pomerania (28%) is ahead in terms of the relative share of green startups in all startups, followed by Bremen (26%).

Above-average proportion of women in management positions

Diversity also differs from the overall start-up scene. 22% of green startups founded in 2025 have women in management positions, compared to just 16% of non-green startups.

Sustainable business practices pay off, especially for the next generation of German companies that take environmental aspects into account.

Dr. Natalia Gorynia-Pfeffer, RKW

It is also striking that female managers in green companies are more likely to remain in management even after the company has been founded.

Sound data basis for policy, funding and investment

The Green Startup Report 2026 is intended not only as an inventory, but also as a basis for decision-making:

• economic and innovation policy strategies,
• funding programs for sustainable technologies,
• investment decisions in the ClimateTech and GreenTech sector.

The results show that the technological substance is there. It is now important to shape the framework conditions in such a way that stability once again generates stronger start-up impetus.

The entire report with many other exciting insights and conclusions can be found here: https://www.borderstep.de/publikation/green-startup-report-2026/