Start-Up Foundations Flourish Amidst Economic Challenges

In 2022, Germany witnessed an 11% increase in start-up foundations, totaling 2,766, predominantly driven by the software sector. University cities like Heidelberg emerged as prominent hubs for innovation.

While the industry has faced financing challenges and rising insolvencies, it previously thrived on the momentum of digitalization, particularly in delivery services. Although the record high of 2021 has not been surpassed, a potential recovery in start-up investments is anticipated in 2023, according to analyses by Startupdetector, EY, and KfW.

Despite the pressures of inflation and economic downturn, the resilience of start-ups signals a dynamic landscape, particularly with the boom in artificial intelligence and software ventures.