Economy & Politics

FinancingThese are the most important locations for start-ups in 2020

So far, 2020 has been an emotional pool for German start-ups. Despite the Corona crisis, the number of rounds of financing rose significantly again in the first half of the year. It increased by eight percent compared to the same period last year to 360 deals, as EY stated in the start-up barometer. However, the total value of the investments fell sharply: by 22 percent or around 600 million euros to around 2.2 billion euros.

Start-ups: more deals, less money

However, this decline does not seem to indicate a general reluctance on the part of investors in the pandemic. According to EY, the main reason for the minus is the significantly lower number of large deals in the amount of more than EUR 100 million: “In the first half of 2020 only two such deals were recorded, in the same period last year there were seven.”

The auditors, who are under pressure due to the Wirecard fiasco, counted almost a third as many financing rounds in June as in January. However, investment volumes in start-ups in the corona pandemic remained fairly stable from March to June and even increased slightly in the past two months.

Software and analytics among the favorites

The Software & Analytics area in particular had a positive impact on the balance sheet of German startups. According to the report, most of the money was invested here, 30 percent more than in the first half of 2019. Three of the ten top deals were in this industry. In contrast, the Mobility and FinTech / InsureTech areas generated significantly less interest than in the previous year.

The regions also had clear winners and losers. One of the locations lost almost half of the funding, while the fiercest competition almost quadrupled the balance sheet.

These are the most important German locations for start-ups in 2020


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