In the first quarter of 2025, German start-ups secured approximately EUR 1.6 billion through 295 financing rounds, according to data released by KfW Research. Dr. Steffen Viete, a venture capital expert at KfW Research, highlighted the strong beginning of the year for the German venture capital market, despite the absence of a defined trend. Compared to the fourth quarter of 2024, the deal volume increased by 14 percent to EUR 1.4 billion. However, this figure is lower than the EUR 1.9 billion recorded in the first quarter of 2024, and the number of transactions saw a sharp decrease.
The reported deal volume's rise in earlier quarters was often driven by large-scale individual megarounds, valued at EUR 250 million or more. Such significant transactions were notably absent in 2025.
These insights stem from the KfW Venture Capital Dashboard, which KfW Research uses to publish quarterly updates on Germany's venture capital market. Early-phase start-ups played a major role in the deal volume, accounting for 51 percent in the first quarter, up from 43 percent in the previous quarter. In contrast, the scale-up segment's financing share decreased from 43 percent to 39 percent. The contribution from US investors, traditionally significant in larger financing rounds, was only 13 percent in Germany this quarter.
The number of exits presented a positive trend, marking an increase for the second consecutive quarter. A total of 43 exit transactions were recorded, with acquisitions being the predominant form. Dr. Steffen Viete commented on the robust exit activity based on the number of deals.
Dr. Viete also pointed out a challenge: "A fly in the ointment is the high current volatility in public markets, which poses a burden for the realisation of exits." He added that the European interest rate environment might continue to encourage the German VC market in the coming months.
Further insights into the German economy's status and future needs are discussed in KfW Research's position paper, “Managing the transition, strengthening growth,” offering analyses and recommendations across five policy areas.