Startup Funding in Germany

Starting up your Business in Germany at the Heart of Europe.

A prerequisite for the first contact with a business angel is a team of founders who are enthusiastic about their idea, who have a firm eye on their target market, know where their customers are and how they want to earn money. Patents should be applied for, possible prototypes should be created, marketing and sales partners should be addressed. Founders should have carefully considered what they expect from their business angel. It goes without saying that there should also be a complete business plan (preferably one “ennobled” by successful participation in a relevant business plan competition).

Source: Business Angels Netzwerk Deutschland e.V. (BAND)

For most startups it is very challenging to obtain funding, especially for deep tech startups, because it takes a long time to build a working product. Here is an excellent online lecture on how still to get funding.

Venture Capital is highly selective – VCs invest only in about 0.25% – 0.5% of all startups. Generally, startups seeking VC investment should have achieved a good product market fit, i.e. they should be able to show a strong sales growth (100% better more p.a.).

For more information see the following research paper: “How Do Venture Capitalists Make Decisions?” and the presentation “German Venture Capital Landscape 2020

Alternatives to VC are obtaining public funding / research grants or bootstrapping.

Private Investors

Germany had the second largest Venture Capital funding in Europe (after the UK) in 2019, however compared to the US and China it is still fairly small. “Germany saw a 10.9% increase in venture funding in 2020, PitchBook data shows. One of the biggest rounds was for COVID-19 vaccine developer CureVac, which raised $640 million in July from backers including Qatar Investment Authority, GlaxoSmithKline and the German government, which plans to fund more of the county’s startups in 2021. Last month, a new €10 billion (around $12 billion) state fund was announced to back German startups over the next ten years, with a view to attracting an additional €20 billion in private VC investment.” (Souce: Pitchbook.com)

Gruenderszene

deutsche startups

Business Angels Netzwerk Deutschland e.V. (BAND) – Members Directory

 

Public Funding

Financing start-ups and growth: Overview of funding instruments

Start-ups: Financing and venture capital (GründerZeiten)

The EXIST Business Start-up Grant for students, graduates and scientists from universities and research institutes

Public Funding Database (in German only!)

 

Valuation / Financial Modeling / Business Plan

Average Growth Rate for Startups

Free Valuation Tool for Startups (equidam)

Tech Exit Transaction Multiples (avolta partners)

 

Market Overview

Crunchbase

How much runway should you target between financing rounds?

Dissecting startup failure rates by stage

The Top Ten Cities [Globally] For $100M VC Rounds In 2018 So Far 

Top 10 German VC Funding German Startups (crunchbase news):

Startup Funding: Top 10 German VC Firms

Startup Funding: Top 10 German VC Firms