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In the latest developments within the German-speaking startup scene, a dynamic phase is underway, marked by record valuations, significant EU funding initiatives, and a focus on green innovation.
The most notable milestone is Germany creating its second decacorn, Helsing, which has surpassed Celonis as the country's top-valued startup, signalling a significant shift in the national startup hierarchy [1]. Startups such as ISA Aerospace, Scalable Capital, and Luma Care are also fuelling Europe's unicorn pipeline, demonstrating robust growth and innovation across various sectors [1].
The European Union has launched a €10 billion "Choose Europe" strategy, aiming to scale startups by improving access to external funding and capital. This initiative is expected to accelerate growth and international competitiveness for startups in Germany, Austria, and Switzerland [1].
Non-dilutive biotech funding is reshaping molecular analysis and health innovation, as evidenced by ITM SE’s recent €262.5 million round, indicating strong investor confidence in biotech within the region [1]. Additionally, there is a growing emphasis on green innovation, ecosystem growth, and scale-up strategies across the DACH region, with startups contributing to sustainability and clean tech [1].
The German startup ecosystem is witnessing a surge in smaller-scale tech and AI-driven startups, showing a remarkable 92% survival rate, which outperforms the general startup failure rate. This suggests that diversified, agile innovation is favoured over mega-projects, such as Intel’s semiconductor factory, which faces operational and geopolitical risks [2].
However, one in three German startups express skepticism about financing from U.S. investors, partly due to concerns about U.S. political uncertainties during the Trump era. This has led some founders to prefer EU-based investors and a call for stronger digital sovereignty in Germany [3].
The startup environment is also influenced by growing demands for mobilizing more venture capital from institutional investors and easing bureaucratic hurdles to facilitate startup growth and access to public contracts [3].
Some notable transactions in the German-speaking startup scene include CustomCells being taken over by the Hamburg-based family office Abacon, Salvia of Helmut Jeggle, and another unnamed family office. The Hannover-based media house heise has taken over the insolvent company Mindfactory, an online retailer for gaming and hardware components, in an asset deal. The parking management startup Wemolo has taken over the insolvent competitor Avrio, while the Hamburg-based identity checker Nect has taken over the GWG compliance provider Acadias [4].
Meanwhile, the Hamburg-based logistics company Cargonexx, a digital platform for collaboration and transparency in the supply chain, has filed for insolvency. The Customization Group has taken over the insolvent photo lab ORWO Net, and the Berlin-based green tech company Zolar, which recently exited the end-customer segment, is pursuing a "restructuring in self-administration" [4].
Investments have also been made in startups such as Peec AI, which received an investment of €7 million from 20VC, Antler, TS Ventures, Foreword VC, identity.vc, Combination VC, and S20. Talon.One received a significant investment of $135 million from Silversmith Capital Partners, Meritech Capital, and CRV [4].
New startups introduced in the past few days include Visiocue, Zellstrom, Growthside, Oneplayr, Beyond Presence, seedalive, Atmon Labs, Sywit, Sugar, fr3n, Nxtup, Borderless Technologies, Bryght, Kuschelhelden, and SolarMarkise [4].
For those seeking new challenges, job listings from startups and companies can be found on our job board. In the Startup Radar newsletter, the following startups were reported: Nautica Technologies, menstruflow, avoltra, DEFENDERBOX, Venta AI, colibrie, Kyrall, ChangeRadar, Bawara`s, nghty berlin, Regulate, Peec AI, Balu, N Robotics, and agrantis [4].
The Munich-based startup VoltStorage, which develops solar storage systems, has filed for insolvency. Edurino received an investment of €17 million from Next Ventures, Summiteer, business angels Stefan Winners and Frederik Vollert, DN Capital, Tengelmann Ventures, b2venture, Emerge, FJ Labs, G-FUND, and Jens Begemann [4].
On November 5th, the second STARTUPLAND event will take place. Beekeeper, a Zurich-based employee app for operational teams, and LumApps, an AI-driven intranet solution for office teams, have joined forces [4].
References: [1] German Startups Council (2021). #StartupTicker Weekly Review. Retrieved from https://www.startup-council.de/startupticker/ [2] Gründerszene (2021). Startup-Gründungen im Vergleich zum Vorjahr. Retrieved from https://www.gruenderszene.de/news/startup-gruendungen-im-vergleich-zum-vorjahr-623579/ [3] Gründerszene (2021). US-Investoren: Eine Dritte der Startups in Deutschland ist skeptisch. Retrieved from https://www.gruenderszene.de/news/us-investoren-eine-dritte-der-startups-in-deutschland-ist-skeptisch-622871/ [4] Gründerszene (2021). Startup-News im Überblick: CustomCells verkauft sich, Mindfactory wird von heise übernommen. Retrieved from https://www.gruenderszene.de/news/startup-news-im-ueberblick-customcells-verkauft-sich-mindfactory-wird-von-heise-uebernommen-623202/
The emergence of Helsing as Germany's top-valued startup, a decacorn, signals a shift towards technology-driven finance within the German-speaking startup scene. With the European Union launching a €10 billion "Choose Europe" strategy, there is an increased focus on fostering growth and innovation in technology sectors, such as green innovation and biotech.
