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Germany in 2023

In search of the new wunderkinds

Last updated: 25 May 2023

Market 101

Standing tall on Europe’s tech podium, Germany has tech credentials worth boasting about. With 31 unicorns (the most after the UK), 20.3k startups and some $72bn in total funding over the last decade, it’s no secret that the country has been playing the long game, earning a distinguished reputation as an ever-reliable ecosystem.

It’s fortunate to be home to some deep pockets. Its roster of active investors matches France’s, with just under 1,450 — more than double the likes of Denmark, the Netherlands or Sweden, for a total of 7,000 rounds over the past five years. For a long time, the fourth-largest global economy — which produces some $4.2tn on a ~3% unemployment rate — has been a stable place to pour risky capital into.

Is that still the case? Germany’s been hit hard by the global tech slowdown. A 43% year-on-year funding drop is just the tip of the iceberg — startup creation also fell 18% in 2022, as an underwhelming VC market tanked growth prospects from previous years.

Slowdowns aside, something about German tech still isn’t clicking yet. Yes, the bureaucracy still has a bad name and for all the top research being done in the country — Germany boasts a third more patent applications per person than the US — the economic impact of this work should be higher. There’s also a lot of institutional money sitting on the sidelines: founders would love pension funds to get involved in tech a bit more. It all adds up to a picture of a scene that has grown a lot but is yet to fully deliver on its promise.

Early stage market map

Key facts

99.6%

of German companies are SMEs

$12bn

VC funding for 2022, against a record $21bn in 2021

15.8%

of German startups are in Berlin, highlighting how tech is spread around the country

Trends to watch

  1. Cut the… red tape

    German bureaucracy is notorious among operators. Startups and investors have been vocal about onerous legislation that holds businesses back from nimbler growth paths, while calling for a reduction in compliance costs for cash-strapped companies.

    To keep competing at the top, Germany will need to alleviate its red tape burden, targeting bottlenecks — such as the cost of talent relocation — and promoting smoother fundraising environments. Some early action — including tax breaks and ownership schemes — has shown promise.

  2. Unlit matches

    Fintech and enterprise software have been Germany’s core sectors since early 2021, only falling behind energy in Q1 2023, as investors placed bets to alleviate the country’s politically incendiary reliance on fuel imports. But these ultra-reliable sectors are now in some peril, as capital gets bored and ventures into other strategic areas.

    As public funding pivots towards strategic verticals such as climate and deeptech, the country will likely also diversify its tech in favour of GDP-heavy sectors — including mechanical and electrical industries, robotics, space and transport, which have previously fallen short in the tech investment hierarchy but are key engines for Germany’s workforce.

  3. Der Mittelstand – it’s in the name

    The economic backbone of the country, the fabled Mittelstand (or collection of SMEs) account for roughly 60% of jobs and over 50% of GDP.

    With a strong alternative financing culture — including loan-based options — Germany’s solidity across its SME base could prove vital in overcoming a dull, skittish 2023.

  4. Growing on a dime

    Germany has seen some of the largest growth rounds in Europe over the years, which have helped spread a strong startup culture across several hotspots. But megarounds won’t be key drivers any longer as the slowdown persists.

    To make up for the missing megarounds, startups are going to need to find new strategic partners — be they industry giants or corporate-owned VCs. Access to this kind of industry knowhow, as well as support from a growing host of angels, can help the industry ride out the downturn and plant seeds for future megarounds.

Startups tracked by Sifted

Sifted take

In a country that does many things well, politicians and techies need to be careful not to live off past glories. And if anything in German techland needs das reboot, it’s the capital base, because the many big German pension funds are only sinking a pittance into startups. According to a recent analysis by the VC firm Redstone, US pension funds own 10% of Germany’s tech unicorns, compared with 0.2% held by German pension funds. To get founders through the downturn, and ensure the country doesn't lose its tech jewels across the Atlantic, Germans may need to take a bigger stake in their future.

Rising stars

Simpleclub

EdTech

Digital content platform

Total funding

€3.25m

Grünwald, Germany
2015

Backed by 10x Founders, HV Capital, and a host of super angels — including the founders of Flixbus and Coachhub — it offers an edtech platform for high school students in Germany.

Round

Angel

Valuation

Undisclosed

Date

2022

Size

€1.25m

Insempra

Consumer

Biomanufacturing

Total funding

€12m

Planegg/Martinsried, Germany
2021

The company uses a precision fermentation method to create bioproducts for customers in cosmetics and food. In April 2023, Insempra partnered with German fragrance maker Axxence Aromatic on a new natural scent.

Round

Seed

Valuation

Undisclosed

Date

2022

Size

€12m

Procuros

Procurement

B2B transactions

Total funding

€9m

Hamburg, Germany
2021

B2B transactions software trying to democratise SMEs’ access to major retailers across Europe through a single API. Point Nine, Creandum, Paua Ventures and existing investor btov backed its most recent funding round.

Round

Seed

Valuation

Undisclosed

Date

2022

Size

€8m

Vaayu

Full stack (accounting & offsets)

B2B

Total funding

€12.1m

Berlin, Germany
2020

Automated AI carbon software, specifically designed to empower retailers. Its primary objective is to enable real-time calculations and reductions of carbon emissions. Its last round was led by Atomico, as well as CapitalT and Seven Seven Six, the investment firm started by Reddit cofounder Alexis Ohanian.

Round

Pre-seed

Valuation

Undisclosed

Date

2022

Size

€10.7m

Early stage startups to watch

AAZZUR

Berlin, Germany
2017
 Seed

€800k

€800k

-

alpakas

Berlin, Germany
2021
 Seed

€5.6m

€5m

€25m

Animalytics GmbH

Hamburg, Germany
2020
 Bootstrapped

€210k

€210k

€3m

Anytype

Berlin, Germany
2019
 Seed

€14.3m

€11.8m

-

Aumio

Berlin, Germany
2020
 Seed

€3.7m

€3.1m

-

Bareways

Lübeck, Germany
2019
 Seed

€4m

€1.4m

-

Beducated

Munich, Germany
2019
 Seed

-

€400k

€6.2m

BerlinGreen

Berlin, Germany
2019
 Pre-seed

€800k

€500k

-

BetterECO

Berlin, Germany
2017
 Angel

€1m

€700k

€6.5m

bina

Berlin, Germany
2021
 Pre-seed

€1.3m

€1.3m

-

biotx.ai GmbH

Potsdam, Germany
2017
 Seed

€3m

€1m

-

Bling

Berlin, Germany
2021
 Pre-seed

€2.5m

€1.8m

-

Bluu Seafood

Berlin, Germany
2020
 Seed

€7m

-

-

BOX ID Systems GmbH

Munich, Germany
2018
 Seed

€2m

€2m

-

Breeze Technologies

Hamburg, Germany
2015
 Grant

€320k

€98k

-

buya

Hamburg, Germany
2020
 Seed

€1.8m

€1.8m

-

Cambrium

Berlin, Germany
2020
 Seed

€6m

€3m

-

Capybara Technologies GmbH

Berlin, Germany
2021
 Pre-seed

€300k

€300k

-

carbonfuture GmbH

Freiburg im Breisgau, Germany
2020
 Pre-seed

€2.9m

€2.4m

-

Careloop

Berlin, Germany
2019
 Pre-seed

€650k

€650k

€3.1m

CibusCell Technology GmbH

Speyer, Germany
2021
 Seed

€2m

€1.3m

€9m

Circunomics

Mainz, Germany
2019
 Seed

€1.8m

€1.8m

-

cirplus

Hamburg, Germany
2018
 Seed

€4.5m

€3.3m

€15m

Climatiq

Berlin, Germany
2021
 Seed

€7.6m

€6m

-

Clime

Berlin, Germany
2021
 Angel

€300k

€200k

-

ConstellR

Freiburg, Germany
2020
 Seed

€14.3m

€10m

-

Cozero

Berlin, Germany
2020
 Grant

€1.5m

€1m

-

Creatext

Berlin, Germany
2020
 Angel

€500k

€400k

-

crop.zone GmbH

Aachen, Germany
2020
 Pre-seed

€2m

€1.5m

€25m

CyberDirekt

Berlin, Germany
2018
 Seed

€3m

€1.9m

€10.2m

Cyttraction

Cologne, Germany
2020
 Bootstrapped

-

-

-

Denario

Berlin, Germany
2021
 Seed

€1.8m

€510k

-

Dgree Education Gmbh

Essen, Germany
2019
 Grant

€100k

€100k

-

doctorly

Berlin, Germany
2018
 Seed

€10m

€4m

-

Dogo

Berlin, Germany
2017
 Seed

€3.8m

€2.9m

-

Donut

Berlin, Germany
2018
 Pre-seed

€3.5m

€1.8m

-

Dropp

Berlin, Germany
2021
 Pre-seed

€2.1m

€2.1m

-

Ducktrain

Aachen, Germany
2018
 Seed

€1.5m

-

-

EarlyGame

Munich, Germany
2019
 Seed

€2m

€500k

€9.9m

ecoLocked

Berlin, Germany
2021
 Pre-seed

€1.8m

€1.8m

-

ecolytiq GmbH

Berlin, Germany
2020
 Seed

€13.5m

€13.5m

-

Edgeless Systems

Bochum, Germany
2020
 Pre-seed

€1.4m

€1.4m

-

edyoucated

Münster, Germany
2019
 Seed

€2.5m

€2.1m

-

eevie

Düsseldorf, Germany
2019
 Pre-seed

€1m

€500k

-

Elucidate

Berlin, Germany
2018
 Seed

€11m

€7.7m

-

EqualTo

Berlin, Germany
2020
 Seed

€4.5m

€3.5m

-

everyone energy

Berlin, Germany
2021
 Pre-seed

€910k

€910k

€4.5m

Fertilly

Berlin, Germany
2019
 Seed

€1.8m

€1.8m

-

finmarie

Berlin, Germany
2018
 Seed

€1.4m

€1.4m

€5m

FixFirst

Berlin, Germany
2020
 Angel

€350k

€300k

-

Flagright

Berlin, Germany
2022
 Seed

€3.3m

€2.9m

-

Flooz

Berlin, Germany
2020
 Pre-seed

€2.5m

€2.5m

-

Flowers-Software GmbH

Munich, Germany
2019
 Seed

€6.3m

€3m

-

Frienton GmbH

Munich, Germany
2021
 Bootstrapped

€100k

-

-

FUEL

Berlin, Germany
2022
 Pre-seed

€1.5m

-

€11.5m

GerneOhne

Munich, Germany
2021
 Angel

€200k

€150k

-

GetHenry

Berlin, Germany
2018
 Seed

-

-

-

Glambook

Berlin, Germany
2020
 Pre-seed

€500k

€500k

€3.5m

Glocally

Munich, Germany
2021
 Pre-seed

€250k

€125k

-

GovMind

Berlin, Germany
2020
 Angel

€200k

€200k

-

Grovy Tech GmbH

Frankfurt am Main, Germany
2021
 Seed

€3m

€3m

€30.5m

HeyCharge

Munich, Germany
2020
 Seed

€4.6m

€4.3m

-

Heyflow

Hamburg, Germany
2020
 Seed

€6m

€5.3m

-

Heylama

Berlin, Germany
2021
 Angel

€100k

€100k

€1m

Hybrid Lidar Systems

Bad Salzdetfurth, Germany
2018
 Seed

€2.3m

€300k

-

Innocent Meat

Rostock, Germany
2017
 Seed

€180k

€180k

-

Insempra

Planegg/Martinsried, Germany
2021
 Seed

€12m

€12m

-

INZMO

Berlin, Germany
2016
 Seed

€5.2m

€3.1m

-

It's Complicated

Berlin, Germany
2020
 Bootstrapped

-

-

-

jamie

Cologne, Germany
2022
 Pre-seed

-

-

-

JUCR

Berlin, Germany
2020
 Seed

€7.7m

€6.2m

-

Kaiko Systems

Berlin, Germany
2021
 Seed

€2m

€2m

-

Kertos

Munich, Germany
2021
 Pre-seed

€1m

€1m

€5m

Kleiderly GmbH

Berlin, Germany
2019
 Pre-seed

€250k

€200k

€2.7m

Klim

Berlin, Germany
2020
 Seed

€8m

€6.5m

-

klimazone Labs

Berlin, Germany
2019
 Bootstrapped

-

-

-

Lambus

Osnabrück, Germany
2019
 Seed

€1.1m

€800k

-

Legendary Play

Berlin, Germany
2017
 Seed

€5m

€3.8m

-

Likeminded

Berlin, Germany
2020
 Pre-seed

€3.5m

€3.5m

-

Lite+Fog GmbH

Berlin, Germany
2019
 Pre-seed

€580k

€300k

€3m

Made of Air

Berlin, Germany
2016
 Seed

€8.2m

€5m

-

MAGNOTHERM Solutions GmbH

Darmstadt, Germany
2019
 Seed

€9.4m

€6.3m

-

mammaly

Cologne, Germany
2020
 Seed

€3m

€3m

-

Mentessa

München, Germany
2020
 Pre-seed

€1m

€1m

€7.5m

Meshmerize

Dresden, Germany
2020
 Pre-seed

€1m

€1m

€5.1m

Mindshine

Munich, Germany
2018
 Angel

€1.2m

€800k

-

Momunity

Berlin, Germany
2017
 Seed

€450k

€450k

€6m

Monite

Berlin, Germany
2020
 Seed

€6.1m

€4.4m

-

Mooncamp

Cologne, Germany
2020
 Bootstrapped

-

-

-

MOTIONTAG

Potsdam, Germany
2015
 Seed

€3.8m

€1m

€11m

Mushlabs

Hamburg, Germany
2018
 Grant

€24.1m

€15m

€35m

mysupply

Hamburg, Germany
2020
 Pre-seed

€250k

€450k

-

NATIX

Hamburg, Germany
2020
 Pre-seed

€1.9m

€700k

-

NeoCarbon

Berlin, Germany
2022
 Pre-seed

€1.4m

€1.3m

-

Newcon

Berlin, Germany
2022
 Angel

-

-

-

Nuclicore

Frankfurt, Germany
2021
 Bootstrapped

-

-

-

Nui Care

Munich, Germany
2018
 Seed

€3.5m

€2m

€7.1m

OKAPI:Orbits

Braunschweig, Germany
2018
 Seed

€5.8m

€5.5m

-

Ostrom

Berlin, Germany
2021
 Seed

€4.4m

€9.3m

-

Oviavo

Berlin, Germany
2019
 Pre-seed

-

-

-

Passionfroot

Berlin, Germany
2021
 Seed

€3m

€3m

-

Pectus Finance

Berlin, Germany
2021
 Angel

€2.4m

€1.9m

-

Phantasma Labs

Berlin, Germany
2018
 Seed

-

-

-

Pixel Robotics

Munich, Germany
2020
 Bootstrapped

-

-

-

PLAN3T

Hamburg, Germany
2020
 Pre-seed

€1m

€750k

-

Polyteia

Berlin, Germany
2018
 Seed

€6m

€3m

-

Procuros

Hamburg, Germany
2021
 Seed

€9m

€8m

-

Qdrant

Berlin, Germany
2021
 Pre-seed

€2m

€2m

-

QuantiCor Security

Darmstadt, Germany
2018
 Seed

€830k

€780k

-

QuantumDiamonds GmbH

Munich, Germany
2022
 Pre-seed

€500k

€500k

-

Raus

Berlin, Germany
2021
 Pre-seed

€3.2m

€2.2m

-

receeve GmbH

Hamburg, Germany
2019
 Seed

€16m

€4m

-

RELOAD Motors GmbH

Burgwald, Germany
2020
 Angel

€3m

€3m

-

Resourcify GmbH

Hamburg, Germany
2015
 Seed

€9m

€4.7m

-

reverse.supply

Berlin, Germany
2021
 Seed

€5m

€5m

€25m

RIDE Capital

Berlin, Germany
2020
 Seed

€5m

€3m

€60m

Robotcloud GmbH

München, Germany
2016
 Angel

€500k

€200k

€4m

Salfy - Easy Benefits

Berlin, Germany
2019
 Bootstrapped

-

-

-

Signature Products GmbH

Pforzheim, Germany
2019
 Grant

€1.3m

€800k

-

simpleclub

Grünwald, Germany
2015
 Angel

€3.3m

€1.3m

-

Space Structures GmbH

Berlin, Germany
2011
 Bootstrapped

-

-

-

Spacenus GmbH

Darmstadt, Germany
2015
 Seed

€2m

€1.7m

-

spotixx

Frankfurt, Germany
2019
 Bootstrapped

-

-

-

SQIN

Berlin, Germany
2021
 Pre-seed

€800k

€800k

-

Statice

Berlin, Germany
2018
 Angel

€7m

€4m

€7m

Sympatient

Hamburg, Germany
2017
 Grant

€5m

€1.3m

-

Tanso

Munich, Germany
2021
 Pre-seed

€1.7m

€1.6m

-

Taxy.io

Aachen, Germany
2020
 Seed

€5m

€2.5m

-

TextCortex AI

Berlin, Germany
2021
 Pre-seed

€1.1m

€1.1m

-

THE CLIMATE CHOICE

Berlin, Germany
2020
 Pre-seed

€2m

€2m

-

The Plate

Berlin, Germany
2021
 Pre-seed

€1.6m

€1.6m

-

Timeless Investments

Berlin, Germany
2021
 Seed

€12m

€12m

€60m

tokenstreet

Berlin, Germany
2020
 Grant

€700k

-

€5m

Tomorrow Biostasis

Berlin, Germany
2020
 Angel

€2.5m

€2.5m

-

Tomorrow’s Education

Berlin, Germany
2020
 Seed

€4.5m

€3.4m

-

tozero

Munich, Germany
2022
 Pre-seed

€3.5m

€3.5m

-

traceless materials GmbH

Hamburg, Germany
2020
 Seed

€3.5m

€1m

-

Tracks

Berlin, Germany
2018
 Seed

€3.6m

€2m

€10m

TripLegend - Travel The World GmbH

Berlin, Germany
2020
 Angel

€350k

€350k

-

tripleye

Karlsruhe, Germany
2020
 Bootstrapped

-

-

-

Twain

Berlin, Germany
2021
 Seed

€4.4m

€2m

-

Unchained Robotics GmbH

Paderborn, Germany
2019
 Pre-seed

€2.2m

€1.7m

-

UNOWN

Hamburg, Germany
2019
 Seed

€2.9m

€2m

-

Vaayu

Berlin, Germany
2020
 Pre-seed

€12.1m

€10.7m

-

Valispace

Bremen, Germany
2016
 Seed

€6.7m

€3.3m

-

WARGdrones GmbH

Hamburg, Germany
2019
 Seed

€1.8m

€300k

-

We Do Solar

Berlin, Germany
2021
 Seed

€300k

€300k

-

Wuplo

Berlin, Germany
2021
 Seed

-

€3.7m

-

Yababa

Berlin, Germany
2021
 Seed

€13.4m

€12.5m

-

Yuri GmbH

Meckenbeuren, Germany
2019
 Seed

€4m

€2m

-

Zebracat

Berlin, Germany
2021
 Pre-seed

€425k

€425k

-

ZenML

Munich, Germany
2021
 Pre-seed

€2.3m

€2.3m

-

German's success stories

Who early stage startups are up against

Personio

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

HR management software platform — the best capitalised company of its kind in Europe — focused on applicant tracking, onboarding, payroll and performance tracking.

DeepL

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

One of only two European unicorns created this year, the Cologne-based startup offers an AI-based translation service.

Celonis

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

The most valuable German startup to date, it’s a process mining tool that uses data analytics to identify bottlenecks in business processes for large enterprises.

Sources

Data

Sifted | Proprietary data

Dealroom | Data

Research reports

1 The German Mittelstand as a model for success | Federal Ministry for Economic Affairs & Climate Action

2 German Startup Monitor 2022 | 2022 | PWC

Economic forecast for Germany | May 2023 | European Commission

Financing for start-ups, company growth, and innovations | Federal Ministry for Economic Affairs & Climate Action

Germany as an industrialised country – the main facts | March 2023 | Deutschland.de

US pensioners benefit most from German start-up successes, German pensioners go largely empty-handed | April 2023 | Redstone VC

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