<aside> 💡 We have seen some turbulent times 🎢 in the past with exorbitantly high valuations for companies that did not even have a product to show, let alone first customers. Although there are still examples of huge cash injections, times seem to have returned to normal. This page displays some actual facts and figures of recent developments on the German market.
Additionally, view the following report from industry veterans for the newest updates of the European ecosystem.
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Depending on the time horizon chosen, one might think venture funding is on a downturn since 2021. However, as the following graph is showing, years 2021/ 22 have just been outlier years with an immense amount of venture funding:
*International comparison:
Comparing venture funding between H1 2023 and H1 2022, Germany shows a slowdown of 37%, which is relatively better than France and the UK, which show declines of 54% and 40%, respectively.*
Source: NGP Capital
General trends are showing that bigger round sizes are constantly decreasing, while Seed rounds depict a counter-directional development:
International comparison:
In 2017 - 2019, US growth investors were responsible for +50% of investments in German VC deals. However, the current trend shows that US investments have been massively declining since 2022.
Source: NGP Capital, Dealroom