Financing deficiency impacts German startups according to Bitkom research
In a recent survey conducted by the digital association Bitkom, the financing situation for tech startups in Germany has been highlighted as a concern. The survey, which polled 152 German tech startups between calendar weeks 12 and 21 of 2025, revealed that only 29 percent of founders consider it very likely that they will receive the necessary financing.
The average capital requirement of startups over the next two years is around €2.5 million. However, only 24 percent of the startups feel sufficiently financed, while a quarter (26 percent) are considering moving abroad due to the current financing situation in Germany.
Bitkom President Ralf Wintergerst has expressed his appreciation for the current financing situation for startups in Germany but has also acknowledged that it remains challenging compared to international standards. He emphasizes the need to make Germany attractive for founders from other European countries and the USA, in addition to keeping tech startups in Germany.
Wintergerst notes that a lack of venture capital is identified as the main reason for the tense financing situation for startups in Germany. He suggests that more needs to be done to counteract this issue, including initiatives such as the Future Fund, a political measure intended to improve startup financing conditions.
The Future Fund, along with the federal government’s “Startup Factories” competition, which awards substantial funding to support local startup ecosystems, are proactive steps taken by the German government to tackle the venture capital shortage. These initiatives, however, may not be enough, according to Wintergerst. He stresses that while they show political willingness to act, more needs to be done to make Germany not only retain its current tech startups but also attract founders from other European countries and the USA.
Investors have become more cautious due to the economic uncertainties, with 81 percent of startups reporting this trend. Only 23 percent believe there is sufficient venture capital available in Germany. This cautiousness is reflected in the fact that only 50 percent of founders consider it somewhat likely that they will receive the necessary financing, while two percent virtually rule out successful financing.
Despite these challenges, there is a positive sign that 53 percent of startups surveyed can fundamentally imagine taking an Initial Public Offering (IPO). Nearly half of these startups (45 percent) are considering a German stock exchange for an IPO, while 40 percent are considering a foreign stock exchange.
In summary, Germany has taken proactive steps to address the venture capital shortage for tech startups, but according to Bitkom President Wintergerst, more extensive measures and increased funding availability are necessary to secure and grow the German tech startup ecosystem internationally.
- The lack of venture capital continues to be a prominent issue for tech startups in Germany, as only 23% of startups believe there is sufficient financing available, with 81% reporting increased cautiousness from investors.
- In light of these financing challenges, 53% of surveyed startups are considering taking an Initial Public Offering (IPO), with nearly half (45%) looking to list on a German stock exchange and 40% considering a foreign one, suggesting a potential avenue to secure funding.
