Berlin Startups Secure 218 Deals in 2025
© IDEOGRAM
Berlin has once again proven its position as Germany's leading startup hub, securing 218 financing rounds in 2025, according to the EY Startup-Barometer Deutschland. While this represents 38 fewer deals than the previous year, the capital still significantly outpaced Bavaria, which recorded 149 rounds.
The funding landscape reveals an interesting dynamic. Bavaria attracted 3.3 billion euros compared to Berlin's 2.68 billion euros. However, the distribution tells a different story. In Bavaria, roughly 2 billion euros flowed to just seven companies, while Berlin's capital was spread much more broadly. The largest single financing round in Berlin reached only 240 million euros, highlighting a more diverse and balanced ecosystem.
Software and analytics dominated Berlin's investment scene, with 82 financing rounds totaling 992 million euros. The sector is increasingly driven by artificial intelligence companies, which alone secured 584 million euros. This concentration reflects Berlin's growing strength in cutting-edge technology.
The FinTech and InsurTech sectors proved particularly strong for Berlin startups, capturing 334 million euros across 14 rounds and commanding an impressive 61 percent market share in Germany.
When comparing German cities, Berlin leads with 2.68 billion euros, narrowly ahead of Munich's 2.45 billion euros. Other major German cities lag considerably behind: Cologne attracted 464 million euros, Stuttgart 188 million euros, Hamburg 176 million euros, and Frankfurt just 88 million euros.
Despite a challenging funding environment across Germany, where total deal numbers dropped for the fourth consecutive year, Berlin's ecosystem demonstrates resilience through its diversity and breadth of investment activity across multiple high-growth sectors.
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