BerlinMay 6, 2026 /PRNewswire/ — According to the latest statistics from KfW, growth-oriented startups received 1.7 billion euros in venture capital from funds and large corporations in the first quarter of this year, a year-on-year increase of 6%.
The statistics show that the growth in financing scale this quarter was not driven by a single mega-deal, but rather the result of stable overall market development. In terms of industry distribution, the majority of transactions in Germany were completed by startups in the healthcare sector, accounting for 18%, followed closely by financial companies, with a share slightly above 15%.
The impact of the AI boom on the investment landscape is particularly notable: German startups relying on AI-based applications raised 967 million euros through 71 financing rounds in the first quarter. Investment in the AI sector accounted for 58% of the total venture capital market size for the quarter, significantly higher than the average of approximately 43% for the full year of 2025.
Asha-Maria Sharma, an AI expert at Germany Trade & Invest, commented: “More and more capital is flowing into German startups—this trend shows that AI startups not limited to large language models (LLMs) are attracting significant attention from international investors due to their technological approaches. The close ties between German startups and renowned universities and research institutions, along with a clear focus on technology-driven business models, are key reasons for their favor with venture capital.”
Germany Trade & Invest is the foreign trade and inward investment agency of the Federal Republic of Germany. The organization provides advice and support to foreign companies entering the German market and assists German-established companies in entering foreign markets.