Startups in Germany raised nearly €8.4 billion in venture capital last year, according to data released Monday by consulting firm EY. The total marks a 19% increase compared to the previous year and represents the third-highest figure ever recorded in the country’s startup sector. Young companies in Bavaria secured the largest share of the funding, with the three biggest financing rounds going to technology firms.
As in the previous year, Munich-based drone manufacturer Helsing received the highest amount, raising €600 million, €150 million more than in 2024, EY reported. It was followed by energy startup Green Flexibility with €400 million and biotech firm Tubulis with €344 million. All three are based in Bavaria. In total, seven of the ten largest funding rounds went to Bavarian startups, two to companies in Berlin, and one to Baden-Württemberg.
“Bavaria is currently solidifying its position as a very successful and dynamic startup location,” said EY expert Thomas Prüver. He attributed this to the focus of the region’s startup ecosystem. “While the emphasis of young companies in Berlin still lies largely in the currently weaker areas of e-commerce and FinTech, Bavarian startups benefit from their tech and defense focus and the global AI boom.”
EY said the overall rise in investment volume was driven by an increase in large deals. In 2025, there were 18 major investments of at least €100 million each, six more than the year before. Artificial intelligence remains one of the most promising investment fields, the analysis found. Startups in software and analytics secured around €2.7 billion in total funding, nearly €450 million more than the previous year. Energy and health followed as the next strongest sectors.
According to Prüver, Germany’s investment climate remains “fundamentally promising.” While the country’s declining appeal as a business location is affecting startup investment, with high energy costs, persistent labor shortages, complex regulation, and a difficult economic environment weighing on companies, “German startups are increasingly managing to access fresh capital again.”
This is especially true for younger firms that already show initial success. For “very young” companies, however, conditions remain challenging, Prüver noted, pointing to the decline in smaller deals in 2025.
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