Germany has long been touted as the next big European tech hub. But after a blowout Q1’15, which saw over $1.2B raised across 70 deals (both multi-year highs), overall activity fell back down to earth in Q2’15. The absence of multiple mega-rounds and the second-lowest quarterly deal number since Q4’12 combined for a major pullback quarter where just $401M was raised across 45 deals. Q2’15’s largest deal was to Delivery Hero in the form of a $110M Series H, the only $100M+ round to a VC-backed German company in the quarter.
Berlin continues to dominate the German VC scene, accounting for over 40% of all investments to German VC-backed companies since 2012 and over 55% of all funding. Berlin hosts multiple high-flying German startups including Delivery Hero, Foodpanda, Soundcloud, and HelloFresh, among others. Rocket Internet — known for producing startups that clone successful American tech companies — is based in Berlin.
Munich is second for deal activity in Germany, with 87 deals sine 2012 raising nearly $527M. Munich is home to Westwing Home & Living as well as JenaValve Technology, which each have raised over $100M in cumulative funding.
Hamburg rounds out the top 3 with 44 investments into VC-backed companies since 2012, the bulk of which have gone to early-stage companies.
Delivery Hero leads all German VC-backed companies in total funding, having raised a whopping $1.33B thus far from investors including Holtzbrinck Ventures, Rocket Internet, German Startups Group, among others. Foodpanda, another Rocket Internet-backed company, has raised the second-most funding at $318M, while Kreditech rounds out the top 3 at $270M. Notably, 3 of the top 5 most well-funded German VC-backed are backed by feature Rocket Internet.
Another VC, Bonn-based High-Tech Gruenderfonds, is by far the most active in Germany, investing in over 100 companies since 2012, including Windel.ne which recently went public at a ~$533M valuation as well as 6wunderkinder which was acquired by Microsoft for ~$200M in June.
German Startups Group and IBB Beteiligungsgesellschaft rounded out the top 3.
|2||German Startups Group|
|6||Earlybird Venture Capital|
|13||Point Nine Capital|
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity