News from 2025-08-01 / KfW Research

German Venture Capital Barometer 2nd Quarter 2025

Global politics weigh on investor sentiment in German venture capital market

Sentiment in the German venture capital market dropped in early summer. The VC market sentiment indicator fell by 17 points to -18.8 balance points in the second quarter of 2025. Thus, it switched back to red after showing amber in the previous quarters, when everything was suggesting a new phase of green was coming soon. Business expectations have now deteriorated at an above-average rate.

German Venture Capital Barometer 2nd Quarter 2025

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