Germany’s venture capital market remains strong but has undergone a strategic shift. While early-stage deal volume declined in 2024—H1 2024 saw half the number of deals compared to the peak in H1 2022—the total amount ofindicating that funding rounds are becoming larger but more selective.
Many VC firms in Germany have raised fresh capital, adding to the pool of available funding for startups. The country also benefits from a strong corporate venture capital presence.
The German government plays a key role in supporting venture investment. The Future Fund (Zukunftsfonds) is a €10 billion public-private initiative designed to strengthen later-stage funding through 2030. As part of this program, Germany launched an Impact Fund in 2024, dedicated to investing in climate and sustainability-focused startups. These efforts aim to enhance Germany’s ability to scale high-growth startups domestically rather than losing them to international investors.
Germany’s venture capital landscape includes some of Europe’s most active investment firms. HV Capital, Earlybird, and Point Nine Capital are prominent early-stage investors, while Lakestar, Project A, and Cherry Ventures provide both early and growth-stage funding. Acton Capital and Target Global remain strong players in later-stage financing, helping to scale Germany’s most promising startups.
Germany has continued to produce high-profile venture deals across a range of industries. One of the standout funding rounds in 2024 was Helsing, a Munich-based AI defense startup, which raised €450 million—one of the largest AI investment rounds in Europe.
Munich also solidified its reputation in space technology, with The Exploration Company raising €150 million and Isar Aerospace securing $70 million, establishing the region as a major hub for satellite and launch technology.
Berlin remains a powerhouse for fintech investment. Neobank N26 secured additional funding in 2024 following its earlier unicorn-making rounds, while Wefox, a leading insurtech company, raised substantial funding in 2023 to drive its expansion.
Germany’s unicorn ecosystem continues to thrive. Companies such as Celonis, a global leader in process mining software, and Personio, an HR SaaS platform, both headquartered in Munich, rank among Europe’s most valuable private tech firms. Berlin’s startup scene has produced large consumer-facing companies such as HelloFresh and Zalando, which have since gone public. Many of their former employees have gone on to launch new startups, contributing to Germany’s expanding ecosystem
Our research shows that the most active venture capital firms in Germany are TruVenturo, Target Partners, Earlybird, Holtzbrinck Ventures, Capnamic Ventures, High-Tech Gründerfonds, Piton Capital and Arena Ventures. These firms have funded startups from various sectors such as e-commerce, fintech and software.
Some of the most well-funded startups in Germany include N26, Auto1, FlixMobility and Kreditech. N26 is a digital bank that has raised over $570 million in venture funding. Auto1 is an automotive marketplace that provides car dealers with access to used cars and has raised over $625 million in venture funding. Flixmobility is a mobility platform for long-distance buses and trains that has raised over $590 million in venture funding.
Finally, Kreditech is a consumer finance company that provides loans to people who lack access to financial services and has raised over $360 million in venture capital funding. All four companies have received significant investments from notable VCs such as Atomico, Earlybird, Rocket Internet, Goldman Sachs and Rocket Internet.
VC investment in Germany is typically focused on technology-driven companies in sectors such as software, e-commerce, fintech and healthcare. In recent years, venture capital firms have become increasingly interested in deep tech companies that use artificial intelligence (AI) or blockchain technology. Additionally, there has been an increasing focus on sustainability-related investments such as clean energy, green mobility and smart cities. All of these sectors have received significant investment from top VCs in Germany and are expected to continue growing in the future.
The venture capital landscape in Germany has seen some significant changes in recent years. Notable VCs such as Atomico, Earlybird, Rocket Internet, Goldman Sachs and Rocket Internet have increased their presence in the country.
There is a greater focus on technology-driven investments such as AI and blockchain, which have spurred interest from investors looking for new opportunities.
With the emergence of sustainable investment options such as clean energy and green mobility, VC firms are now looking at these sectors as potential sources of returns. All of these factors combined have made Germany an attractive destination for venture capital investing.
Recent trends in VC funding in Germany include increased activity from corporate venture capital (CVC) firms as well as a shift towards larger ticket investments. CVCs such as Daimler Mobility and Bosch Ventures have become active players in the German startup ecosystem, investing not only for financial returns but also to gain access to technology and innovative ideas. Additionally, venture funds are increasingly shifting towards investing larger amounts of money into fewer deals - a trend known as “mega-deals”. This trend has been particularly visible in the mobility sector, where startups such as FlixMobility and Auto1 have raised over $500 million each.
Overall, VC funding in Germany is on the rise, with many investors recognizing the potential of German startups to become global players. By closely tracking these trends, it is possible to identify which sectors are seeing most investment activity and which companies are receiving the largest investments. These insights can be used by entrepreneurs to better understand what kind of businesses are attractive for venture capital money and how they can maximize their chances of success when pitching for investments.
Some of the most successful exits by German startups are Delivery Hero, Rocket Internet, Zalando and Adjust. Delivery Hero is a food delivery platform that was acquired for $4 billion in 2017. Rocket Internet is an e-commerce incubator that went public on the Frankfurt Stock Exchange in 2014 at a valuation of €6.7 billion ($7.1 billion). Zalando is an online fashion retailer that has achieved success both through organic growth as well as high-profile acquisitions such as Humanic and Jades24. Finally, Adjust is a mobile analytics company that was acquired for $960 million in 2020.
These exits demonstrate the potential of German tech companies to become global players and create significant value for their investors. They have also attracted attention from international investors, making Germany an even more attractive destination for venture capital investment. With many new and innovative startups launching every day, there will likely be even more successful exits in the near future.
