The startup scene experienced record momentum with 3,568 new startups in 2025. This is an increase of 29% compared to 2024 and significantly more than in the record year 2021, when 3,196 new companies were founded. Hamburg was also able to significantly increase the number of start-ups with a rise of 26% compared to 2024, but has stagnated over time since 2019. These results come from the new “Next Generation” report published by the German Startup Association together with startupdetector.
Start-up activity is growing in almost all federal states. In the ranking, the city states of Hamburg with 10.9 and Berlin with 16.8 start-ups per 100,000 inhabitants show the greatest start-up activity, with Bavaria, North Rhine-Westphalia and Saxony recording the largest increases in start-ups.
The software sector remains the driving force behind start-up development: with 853 new start-ups in 2025, it recorded the strongest absolute growth, up 38% on 2024. The medical sector followed with 428 new start-ups, an increase of 46%.
Artificial intelligence is a clear key driver: 27% of start-ups in 2025 will incorporate AI as an important component of their business models – a cross-industry dynamic that is particularly evident in advertising (55.6% share) and LegalTech (50.9% share). The AI dynamic is also particularly evident in real estate and finance, which are benefiting from the positive AI development in the FinTech sector. The number of start-ups increased to a strong 124 after 97 in 2024.
It is encouraging that the number of insolvencies has fallen slightly compared to the previous year – down 11% – and that the B2C sector is continuing to recover. The number of start-ups in the food sector increased by 80%.
The entire “Next Generation” report can be downloaded here.
