Startups from Bavaria secured significantly more investments in the first half of 2025: At €2.1 billion, almost half of the total investment volume in Germany went to the Free State – 262 percent more than in the same period last year, as the consulting firm EY announced on Thursday. Young entrepreneurs from Berlin also raised 46 percent more money than in the same period last year. However, with a total of €1.5 billion, they clearly lagged behind Bavaria.
Of the ten startups with the largest investment sums in the first half of the year, six were from Bavaria, three from Berlin, and one from Baden-Württemberg. The Munich-based software company Helsing, which specializes in the defense industry, raised the most money with €600 million, followed by the battery storage provider Green Flexibility from Kempten in the Allgäu region (€400 million) and the Berlin-based software startup Amboss (€240 million).
"The startup ecosystem in Germany has changed significantly over the past two years; the balance is shifting," explained Thomas Prüver of EY. "Most deals still take place in Berlin. And Berlin remains the clear leader in e-commerce, for example." However, there are new focuses on the defense industry, the energy transition, and AI – and Bavaria is particularly strong in these three areas.
"The Bavarian startup ecosystem has its strengths in the technology sector – this is precisely the area that is currently attracting the most attention from investors," Prüver explained. Furthermore, young Bavarian entrepreneurs benefit from the traditional industries located there, as automotive and mechanical engineering companies are potential customers and cooperation partners for new services and products.
Overall, the startup scene has recently performed well. Young entrepreneurs across Germany raised €4.6 billion in the first half of the year – 34 percent more than in the same period last year. This is the third-highest figure for a first half of the year determined by EY since 2015. The financing volume has been rising for a year and a half now.
"The past few years have not been easy for the German startup scene," explained Prüver. "The record year of 2021 was followed by a relatively rough landing. Currently, investment amounts are clearly settling at a higher level than before the record year – and the trend is clearly upward." EY regularly compiles data on investments in young companies. Startups are defined as companies less than ten years old.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
