Bavaria overtakes Berlin: 2.1 billion euros for startups on the rise!

Bavaria overtakes Berlin: 2.1 billion euros for startups on the rise!

For a long time, Berlin had the say in the German startup scene. But as the current study by the consulting firm EY shows, Bavaria made up a lot of ground in terms of startup financing in the first half of 2025. Almost 2.1 billion euros flowed to Bavaria during this period, while Berlin was clearly left behind with 1.5 billion euros. This means that almost every second euro of venture capital in Germany goes to Bavaria, which significantly strengthens the Free State's position in the corporate landscape. This fact is not surprising, as the signs of change in the German startup ecosystem are clearly noticeable. BR.de reports that this trend is not just temporary.

Companies like the AI ​​developers at Helsing received the greatest financial support, raising an impressive 600 million euros. The battery storage provider Green Flexibility from Kempten was also able to boast 400 million euros. There are also well-known companies such as the defense company Quantum Systems and the financial platform Scalable Capital, which also benefit from the increased financing. In contrast, Berlin is only represented in the top five by the software company Amboss, which clearly underlines the current market development. The Daily Mirror also highlighted this.

Rapidly growing venture capital

In total, around 4.6 billion euros in venture capital flowed into young companies nationwide in the first half of 2025, which corresponds to an increase of 34 percent compared to the previous year. Even though financing in Bavaria almost quadrupled compared to the previous year, Berlin recorded an increase of 41 percent. This shows that the market remains lively in both cities, even if the focus is increasingly shifting to Bavaria. However, the situation looks less rosy in North Rhine-Westphalia and Baden-Württemberg, as there has been a decline in startup investments. The KfW highlights that this is the third best first half of the year since 2015 for German start-ups.

The distribution of financing shows that the Bavarian start-ups have developed excellently. While Bavaria was able to record 76 rounds of financing, Berlin is still ahead with 132 rounds, but the dependence on highly solid investments, especially in areas such as artificial intelligence, the defense industry and renewable energies, is becoming increasingly clear. These sectors are particularly well represented in Bavaria.

So what can we learn from these developments? Looking at the funds raised and the financial framework, it is clear that the start-up culture is flourishing in Bavaria, not least due to the Free State's strong economic power, which enables these start-ups to work seamlessly with traditional industries. The future remains exciting, and many founders hope that this upward trend will continue for a long time!