The startup scene in Germany is experiencing a new upswing: In the first half of 2024, there were 15% more startups than in the second half of 2023. Hamburg is characterised by a high density of startups. This is shown by the latest data from the report series “Next Generation – Startups in Germany”, published by the Startup Association and startupdetector.
Things have been looking up again since January!
In the past six months, 1,384 start-ups were founded. That shows: The German startup ecosystem is regaining momentum. After the sharp decline in mid-2022, things are now looking better again. Berlin, Bavaria and North Rhine-Westphalia are leading the way in terms of start-ups. There is a clear upward trend, especially in NRW (up 25%) and Berlin (up 28%).
Software is all the rage
The key sector is software – never before have more start-ups been founded in this area than in the past six months. Of the 1,500 new start-ups founded in the last six months, one in five came from the software sector. This shows how important digitalisation is and how many people need innovative software solutions. Increasing digitalisation and the use of artificial intelligence (AI) in particular are ensuring that a lot is happening here. Start-ups in this field are developing innovative solutions that make companies more productive and efficient. These solutions are particularly in demand in the B2B sector because they help companies to reduce costs and optimise processes. This proves how start-ups are making the German economy more digital, faster and more efficient.
Hotspots create dynamism – potential in the regions
The city states – especially Berlin and Hamburg – are characterised by their start-up dynamism and high density of start-ups. The Hanseatic city has 4.1 start-ups per 100,000 inhabitants (- see chart).
Munich remains the central hotspot for the time being
Munich and Berlin are in an exciting neck-and-neck race: The two cities remain the central hotspots of the German startup ecosystem. More than a quarter of all new startups in the country are founded there (26%). Even though Berlin has the most start-ups in absolute terms, Munich has narrowly edged out the capital in terms of start-ups per capita over the last twelve months. Beyond the well-known hotspots, locations close to universities and research centres are the main drivers of start-up dynamics in the ecosystem.
Positive development can be seen almost everywhere
The positive trend in start-ups can be seen throughout Germany: there are not only more start-ups in the large metropolises, but also in many smaller cities and regions. Three research-related start-up locations, namely Aachen, Darmstadt and Heidelberg, are among the five cities with the most start-ups per capita. This shows that regions away from the well-known start-up hotspots are also becoming increasingly important.
To the report:
The report “Next Generation – Startups in Germany” provides a continuous six-monthly monitoring of one of the key success indicators of the German startup ecosystem. The series is based on the data collected by startupdetector on new startups in Germany, which is based on commercial register data and has been collected since 2019.
The full report is available here.
