Start-up financing: has the bottom been reached for founders?

Investments in German start-ups continue to decline. But there are initial signs that things will pick up again in the foreseeable future.

DGermany's start-up scene is facing eventful months. After the industry raised significantly less money with around 6 billion euros in 2023 than in the previous two years, many investors are currently keeping their wallets closed. However, in view of groundbreaking developments in artificial intelligence (AI), quantum computers, electromobility and sustainable energy systems, initial hopes are emerging that this trend will quickly reverse across the board.

Thomas Prüver from the consulting firm EY says in view of the presentation of a study on the current situation of start-ups: “Investors are still acting very cautiously and investing their money selectively.” The reasons are inflation, high interest rates, the tense geopolitical situation and the weak economy in Germany. “In order to obtain fresh capital even in these difficult times, good ideas alone are no longer enough for young companies.”