Investors from outside Germany have a strong interest in German start-ups. Between 2020 and 2024, venture capital providers from outside Germany invested approx. EUR 37 billion in young German start-ups. At the same time, German investors invested some EUR 21 billion in start-ups abroad. The German venture capital market thus experienced a net capital influx of around EUR 16 billion – more than any other major VC market in Europe. The high capital influx to Germany demonstrates that foreign investors see quality in German start-ups. At the same time, however, the German VC market is dependent to a certain degree on capital from abroad. Economic policy must support the German VC ecosystem from two sides: by systematically strengthening the local supply of capital and by successfully integrating international investors.

Trends in cross-border venture capital investments in Germany and Europe(PDF, 819 KB, accessible)

After a quiet first quarter, the German VC market picked up steam in the second quarter of 2025. In Q2 2025, German start-ups raised around EUR 2.4 billion in venture capital – significantly more than in the first quarter (+45% QoQ). The first half of 2025 thus closed with a deal volume of just under EUR 4 billion.

That means the German VC market posted a growth in deal volume for the third half-year in a row. The investments in Q2 2025 took place in 208 financing rounds thus far reported, 98 of which with an individual deal volume of over EUR 1 million.

KfW Venture Capital Dashboard Q2 2025(PDF, 782 KB, accessible)

Press release

Further information in our Dossier Venture Capital