Investments in German start-ups will fall by 43% in 2022
The number of large deals of more than 50 million euros also fell by about half last year, reports Xinhua news agency.
“As the cost of capital rises and valuations fall, investors are focusing more on profitability than on long-term growth promises,” Thomas Pruever, partner at EY, said Wednesday.
“Young companies are challenged to adapt to this and show a clear path to profitability.”
Software and analytics companies in Germany raised by far the most venture capital in 2022 with 3.2 billion euros, according to EY.
The Berlin InsurTech company wefox and the software start-up Celonis from Bavaria achieved the highest funding round with 399 million euros each.
A survey of young companies by the German Startup Association in September 2022 found that “startup uncertainty has increased significantly” due to economic and political unrest. However, the situation was still “much more positive than the Covid-19 year 2020”. (1 euro = 1.07 US dollars)
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