Venture capital investment in German startups picked up in the last quarter of 2023 but failed to return to the levels seen at the beginning of the year.
In Q4, German companies raised €1.7 billion (about $1.9 billion) from VC investors, according to PitchBook’s Q4 2023 Germany Market Snapshot, an increase of 21.4% from the previous quarter. On the other hand, deal count continued its descent from Q1, reaching its lowest level since Q3 2020.
Germany’s VC ecosystem has been lagging behind peers such as France over the past few years. Berlin—the country’s top VC hub—failed to make the top three European cities in terms of deal value in 2023 for the first time since 2016, according to PitchBook’s 2024 Nordic Private Capital Breakdown.
The German government has been looking to bolster its VC industry and last year announced a €1 billion fund-of-funds earmarked for German and European VC funds. State-backed LP KfW Capital also launched an emerging manager facility worth €200 million to increase diversity in the German VC ecosystem.
Take a look at our snapshot of Germany’s venture ecosystem, showcasing key trends across dealmaking, fundraising and exits.
Featured image by Stadtratte/Getty Images
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