Berlin (dpa) – Last year in Germany 2,766 firms with strong growth potential were set up in Germany, an 11% increase over the 2,498 firms set up in 2023, according to data from the Startup Association.
“The latest figures send a strong message about Germany as a place to do business,” said Helmut Schönenberger, Deputy Chair of the Startup Association. According to the association, the number of new firms has recovered from previous downturns across almost all of Germany. Just under one-fifth of the startups, or 618 business, were in the software sector, where the boom in artificial intelligence is plain to see.
Nevertheless, the association has also recorded increased numbers of insolvencies since 2021. Online retailers have been hit particularly hard by the current economic downturn.
While most of the new startups in 2024 are based in major cities such as Berlin (498 startups), Munich (203) and Hamburg (161), cities with close links to research also stood out, such as Heidelberg, Aachen and Darmstadt.
During the pandemic, German startups enjoyed the benefits of low interest rates and a push to digitalise businesses and services. However, investors became cautious due to rising inflation and interest rates along with concerns about economic growth. Investment in start-ups collapsed in 2023 and many firms cut jobs.
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