German start-ups receive more venture capital
The German start-up sector is raising more venture capital from investors, not least thanks to the boom in artificial intelligence.
Frankfurt am Main (dpa) – A ray of hope for the start-up sector: German start-ups raised more venture capital from investors in the first quarter – despite high levels of uncertainty surrounding the Iran war and the economy. In the first three months, growth companies received 1.7 billion euros from investors such as funds and corporations, the development bank KfW said, noting that this was six per cent more than in the first quarter of 2025.
More than a quarter of the invested capital was said to have come from abroad. “Investment interest from abroad in German start-ups remains strong despite the ongoing trade and geopolitical risks,” said Dirk Schumacher, Chief Economist at KfW, adding that this was also reflected in investors’ confidence in Germany as a technology and start-up hub.
Most deals in Germany were concluded by start-ups in the healthcare sector, accounting for 18 per cent, followed by financial firms at just over 15 per cent. The boom in artificial intelligence (AI) was also evident: German start-ups developing AI-based applications raised 967 million euros from investors in the first quarter. With a share of 58 per cent of total market volume, AI clearly exceeded the 2025 average of around 43 per cent in the first quarter.
