Germany’s thriving startup ecosystem continues to garner substantial investor interest, ranking as the fourth most funded country globally in 2025. This feat puts it ahead of notable startup hubs like Canada and France. The recently released Germany Tech – 9M 2025 Report by Tracxn sheds light on this remarkable achievement.
As per the report, startups across Germany successfully raised a whopping $5.3B (approximately €4.59B) in the first nine months of the year. This impressive tally was driven by various sectors, with enterprise applications, aerospace, and energy tech leading the pack.
Investment activity was observed across all stages, with seed stage investments amounting to $412M, early stage at $2B, and late-stage investments reaching $2.9B. The country also saw 12 funding rounds exceeding $100M, three notable IPOs, the rise of two new unicorns, and 104 acquisitions. One of the most substantial acquisitions was BioNTech’s $1.3B purchase of CureVac.
Germany’s Dominance in the DACH Ecosystem
The NGP Capital’s data-driven analysis provides an illuminating glance at the startup landscape within the DACH region, encompassing Germany, Austria, and Switzerland. The combined startup funding in these nations reached $12.1B in the past year, with German startups contributing a massive $8.47B – nearly 70 per cent of the total sum. This represents a promising 22 per cent increase from the previous year’s $6.96B.
Furthermore, the report underscores a significant shift in Europe’s venture capital rankings. For the first time, Germany has surpassed France in startup funding. While French startups outpaced their German counterparts by 12 per cent in 2023, by 2024, Germany had reclaimed the lead, leaving France trailing by 14 per cent. As of 2025, the gap has further widened, with France now lagging by 32 per cent based on annualised data.
Germany is also gradually catching up to the UK, Europe’s most significant venture capital market. German funding levels have risen from 48 per cent of the UK’s total in 2023 to 51 per cent, as of mid-2025, signalling a steady closing of the gap.
The Role of Berlin in Germany’s Startup Activity
Amid this flourishing startup ecosystem, Berlin continues to solidify its position as one of the country’s leading startup hubs. The city accounted for 30 per cent of the total funding, marginally behind Munich, which claimed 33 per cent.
In October 2025 alone, Berlin-based startups secured $243M across 10 funding rounds, a considerable increase from the $49M raised through 39 rounds the previous month.
As Berlin continues to fortify its role in Germany’s startup ecosystem, it’s worth highlighting the city-based startups that raised funding in October 2025 and are actively hiring.
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