Unicorns in Germany: Startup revolution in the sign of change!

Unicorns in Germany: Startup revolution in the sign of change!

An impressive rise of the German technology industry: The number of start-ups with a market value of at least one billion euros, the so-called Unicorns, has more than doubled in the past five years. As reported by OE24, there were only 11 such companies at the end of 2024, while the number rose to 28 by the end of 2024. Particularly high investments flowed into areas such as artificial intelligence (AI) and armor, which is further evidence of the region's innovative strength. Leading companies in Germany include Flix, Deepl and Trade Republic.

The increase in technology entrepreneurs is powered by fundamental technological changes. Hendrik Brandis from Earlybird emphasizes that technological innovations in the field of AI and cloud computing have paved their way for this success. Nevertheless, the financing remains an important challenge, as well as Investment Week . The search for additional capital is often a big obstacle for many start-ups that are in the growth phase. Despite the positive development, a funding gap of around 30 billion euros is identified, and new ways have to be found to win over large investors for venture capital.

political support and future challenges

Political perception has also changed; The topic of venture capital has now arrived on the agenda of politics. The startup association demands that the framework conditions for investments are improved and exit options are created through attractive IPO. Verena Pauster, the boss of the association, sees the need for a reform to further promote innovative strength. While the financial support for early start-up phases is relatively good, suitable structures have to be created in order to keep larger amounts of capital in Germany and not to be deducted to other countries.