According to a study, the 100 largest tech startups in Germany have received billions since their foundation. As a result, access to risk capital improves.
With a total of $ 8.1 billion, venture capitalists have helped grow the 100 largest German tech startups since inception. The most heavily funded young companies are the online car dealer Auto1, the music streaming platform Soundcloud and the fashion retailer About You, according to a recent study by consulting firm EY. According to Auto1, from Berlin with a total of nearly $ 1.1 billion so far the most extensive cash injection and was able to complete the last year. The largest round of financing is, in the amount of $ 560 million. The main investor is the Japanese technology group Softbank.
In second place, the study authors see the Berlin music streaming service Soundcloud with a total financing of now 468 million euros. The startup slid into a severe crisis in 2017, but was able to secure a saving investment of almost 143 million euros from the American Raine Group Bank and the Singapore investment company Temasek.
With a total of 300 million euros in investor funds, the Hamburg fashion startup About You takes third place. Among the investors is the grandson of the Otto founder, Benjamin Otto, who increased his stake in the past year to 24.9 percent.
Focus is on FinTechs
Strikingly strong among the top 100 startups, according to EY, are young companies from the financial sector is the so-called Fintechs. Their share increased to 21 companies last year, from 14 in the previous year. In addition, the access to venture capital for tech startups from Germany is improving overall.
After all, the financing of German startups was less marked than in previous years by individual large scale investments. “For young German technology companies, access to venture capital has continued to improve across the board,” says Thomas Prüver, partner in EY’s transaction advisory service.
“The financing of the tech startups was much more differentiated in 2018 than in previous years and has been less focused on some large companies,” said Prüver. Financing, mergers and acquisitions as well as Initial Public Offerings (IPOs) of the largest tech startups in Germany were considered until the end of 2018.
Also published on Medium.