Start-ups in Germany reach new high

The number of new start-ups in Germany rose significantly in 2025. A new record was set with a total of 3,568 new startups. This corresponds to an increase of 29% compared to 2024 and even surpasses the previous record year 2021, according to the latest evaluation of the report series Next Generation - Startup New Foundations in Germany , which was published by the Startup Association together with startupdetector.

Broad start-up momentum across many regions

The growth is spread across almost all federal states. Bavaria recorded particularly strong growth with an increase of 46%, North Rhine-Westphalia with 33% and Saxony with 56%. More than one in five new start-ups were founded in Bavaria in 2025. Munich clearly leads the statistics for start-ups per capita, while research-related locations such as Aachen, Potsdam and Heidelberg are also growing dynamically. This means that the combination of science, technology and entrepreneurship is becoming increasingly important.

Artificial intelligence drives start-up figures

Artificial intelligence is proving to be a key growth driver. Around 27% of all newly founded start-ups use AI as a key component of their business model. The software sector is growing particularly strongly, increasing from 618 start-ups in 2024 to 853 in 2025. AI-based applications are also increasingly being found outside of traditional tech sectors - for example in medicine, industry and the food sector.

Positive signals, but scaling challenges

In addition to software and AI, the food sector also recorded strong growth of 80%. The medical sector grew by 47%, thanks in part to AI applications in diagnostics, documentation and clinical processes. Despite the positive development, the scaling of many young companies remains a challenge. The startup association still sees a structural need to catch up, particularly in terms of growth financing, in order to turn successful startups into internationally competitive companies in the long term.

Critical classification of the startup base

Despite the impressive record figures, the actual economic and labor market policy impact of the high number of start-ups remains to be seen. Start-up statistics initially provide mainly quantitative signals. Only the coming years will show whether this will result in sustainable employment, productive value creation and internationally competitive companies. The decisive factor is not just the number of start-ups, but their ability to successfully scale business models and survive on the market in the long term.

Everyday journalism is increasingly reminiscent of the dotcom phase at the turn of the millennium. Hardly any start-up news today is without a reference to artificial intelligence! Sometimes even where the actual added value seems questionable. When even everyday or marginal products are given AI labels, the question arises as to the real economic substance of such business models and their contribution to value creation beyond buzzwords and short-term attention.

In addition, access to venture capital is becoming noticeably more difficult. The tense overall economic situation is also having an impact on the venture capital markets, financing rounds are taking longer and valuations are under pressure. At the same time, this development presents an opportunity: start-ups are more compelled to validate their ideas on the market at an early stage, generate sales or choose alternative paths such as bootstrapping. In the long term, this could lead to more robust business models and a healthier selection in the German startup ecosystem.