German start-ups face a capital deficit, according to a Bitkom study.
In a recent survey conducted by Bitkom Research on behalf of the Digital Association Bitkom, the funding situation for tech startups in Germany has been scrutinized, revealing both progress and challenges.
The study showed that while 29% of founders consider it very likely that they will secure the necessary funds, 50% see it as rather likely. However, 17% see low chances, and a mere 2% virtually rule out a successful financing. Despite these relatively optimistic figures, only 24% of startups feel adequately funded for the next two years.
One of the reasons for this funding gap might be the increased caution exhibited by investors due to the economic situation, with 81% of surveyed startups confirming this trend. Ralf Wintergerst, President of Bitkom, has long been vocal about the challenging financing situation in Germany compared to international standards.
To combat this, the German government has taken several initiatives. One such initiative is the “Startup Factories” competition, which supports innovative deep tech spin-offs with significant federal funding (€10 million) combined with local contributions (€40 million) in cities like Hamburg. Additionally, the Future Fund has been established to improve financing conditions and retain startups domestically.
These efforts also extend to attracting foreign investment. The rise in funding from international investors, particularly from the USA, indicates active government and economic development bank efforts to promote Germany as an attractive startup destination. This is achieved by fostering innovation hubs, supporting deep tech spin-offs, and highlighting Germany’s growing unicorn ecosystem (now 32 companies).
However, challenges remain. Despite these initiatives, about a quarter of startups consider moving abroad due to funding issues, underlining the need for continued support and increased VC availability. In fact, only 23% of startups view the available venture capital in Germany as sufficient.
An IPO remains an option for 53% of surveyed startups, with 40% considering a foreign stock exchange and 45% a German one. The survey was conducted between calendar week 12 and 21 in 2025, surveying 152 tech startups from Germany.
In summary, the German government is actively addressing the lack of venture capital for tech startups through initiatives like the “Startup Factories” competition and Future Fund. However, challenges remain, with 26% of startups considering moving abroad due to funding issues. The goal is not only to retain domestic startups but also to make Germany an attractive destination for founders from other European countries or the USA.
Start-ups in Germany are facing funding challenges, with only 24% feeling adequately funded for the next two years, despite government initiatives such as the "Startup Factories" competition and the Future Fund. Despite these efforts, about a quarter of start-ups consider moving abroad due to funding issues, underscoring the need for increased venture capital in the country's tech sector.
