Bavaria Surpasses Berlin in Start-up Funding as Investment in German Start-ups RisesInvestment in German start-ups experienced significant growth in 2025, with Bavaria emerging as the leading region for venture capital inflows, outpacing the traditional hub of Berlin. For the second consecutive year, Bavaria attracted more venture capital than Berlin, solidifying its position as a central location for entrepreneurial activity in Germany. Together, these two states accounted for over 70 percent of all start-up funding in the country, demonstrating their importance within the national innovation landscape. The Berlin start-up scene remains robust, particularly in sectors like e-commerce and financial services, even though these areas showed signs of slower growth. Comparatively, Germany lags behind other major economies in terms of venture capital per capita.

Source: The Munich Eye January 19, 2026 08:05 UTC