Last week, the consulting company Ernest & Young published its anual report on the German startup scene.
The report shows a decrease in financing rounds compared to the all-time-high of last year. Nevertheless, the numbers are stilll high with more than a 1.000 deals and nearly EUR 10 billion of funding.
Across Germany, the number of financing rounds in 2022 fell by 152, or 13 percent, to a total of 1,008 deals compared with the previous peak in the prior year. This was the second time ever that the 1,000 deals mark was exceeded in a year. However, the total value of these investments shrank significantly: Compared with the previous year, the total volume fell by 43 percent, or EUR 7.5 billion, to around EUR 9.9 billion - but remains well above the values in the years before 2021. The current decline is primarily attributable to the lower number of large deals: In 2022, for example, there were significantly fewer deals with a financing volume of more than EUR 50 million.
Berlin was once again the hotspot of the German startup scene in 2022: With 390 financing rounds, startups in the German capital accounted for 39 percent of all financing rounds counted in this country (2021: 43 percent) - which is only slightly less than in the three following federal states combined in the deal ranking. Baden-Württemberg is ranked fourth and with 73 shows the same level of deals as in 2021.
The ranking for deal volume is quite similar: Berlin startups receive almost EUR 5 billion in funding. Every second euro invested goes to the Spree, totaling almost EUR 4.9 billion. In turn, almost half of the remaining nearly EUR 5 billion in venture capital goes to startups in Bavaria, where EUR 2.4 billion was invested. Baden-Württemberg (EUR 646 million) and Hamburg (EUR 547 million) follow at a considerable distance. While the level is lower, startups in Baden-Württemberg at least recorded a slight increase in investments in 2022 compared to the previous year.
Sectors with the highest investment are Software, Mobility, Fin-/Insurtech, Energy and Health. In these leading sectors Baden-Württemberg is also particularly strong. We as MCEI cooperate with several startups from these sectors in the Heidelberg/Mannheim region, such as Getsafe (Insurtech), Stocard (Fintech) or Adtelligence (Software), or founded by Uni Mannheim alumni like Instafreight (Mobility). All of them received major funding rounds in the recent past.
The EY report is based on press releases of startups or investors, press coverage and the startup dartabase Crunchbase. For more information follow the link.
