The sum of money that startups can raise rises to 4.6 billion euros. A study shows that double-digit million sums flow much more frequently.
More capital, more deals: According to a survey by the consulting firm EY in 2018, the German start-up world was able to collect more and more money than ever before. According to the start-up barometer published today, the funds that young digital companies have taken from investors, from initial public offerings or even from crypto currencies added up to almost 4.6 billion euros. Compared to 2017, the total increased by seven percent.
The number of registered rounds even increased by 21 percent to 615. However, both values can not claim to be absolute: not all rounds of financing are published, and often start-ups announce only approximate levels of an investment. In addition, of course, exceptionally high levels of funding can distort statistics – last year, according to the EY survey, especially the 460 million euros for Auto1 stand out.
Nevertheless, from the numbers published now (here is the PDF of the study), some trends can be derived. Particularly pleasing for German start-ups: The number of investments between ten and 50 million euros increased significantly. In 2017, there were a total of 54 rounds of funding of the same amount, and in 2018 the consultants already counted 80 such rounds.
Berlin remains unchallenged at the top
In previous years, it was even more frequently criticized in the start-up scene that in Germany too little capital is available for such investments.
Double-digit millions are usually paid to start-ups who have already successfully proven and proven their business model – but who then need larger sums to move abroad or require a broader market. “If investors are willing to dig that deep, it’s a sign of confidence in the business model and young entrepreneurs,” says Peter Lennartz, Partner at EY.
Many observers of the start-up world are also curious about the regional distribution of investments. In October, the monitor of the Federal Association of German Startups had attracted attention because more NRW start-ups cast their vote than young companies from Berlin.
When it comes to the money invested, however, the throne of the capital does not seem to wobble: both in terms of number and volume Berlin is far ahead – with 2.6 billion euros flowed well over half of the money invested in resident there start -ups. However, Bayern and NRW in particular have significantly increased their financing rounds according to the EY survey.