Founders in Germany have again attracted record amounts of money from investors for their business ideas. In 2019, start-ups in Germany received 6.2 billion euros, according to a study published on Tuesday by the consulting firm EY. This was 36 percent more than in the previous year (4.6 billion), which had already been a record level. The number of financing rounds also rose sharply by 13 percent to 704.
"The financing boom continues unabated," said Hubert Barth, Chairman of the EY Management Board in Germany. Established start-ups have had little difficulty in obtaining large sums of money for their business ideas, for example for mobility services, software solutions and financial apps, he said. In 2019 there were 13 deals with a volume of more than 100 million euros - more than twice as many as in the previous year, according to the EY paper, which has been made available to dpa.
The paper states that the most money flowed into the Munich-based company Flixmobility, which is known for its long-distance buses, the travel start-up GetYourGuide, the used car platform Frontier Car Group and the online bank N26.
The large sums of money that German founders have raised come mainly from abroad. "Financially strong and predominantly internationally active investors from the United States, Great Britain and Asia are particularly interested in very large transactions," said EY partner Peter Lennartz.
In Germany, the start-up stronghold of Berlin defended its first place. Start-ups in the city raised 3.7 billion euros, almost 60 percent of all the funds in Germany, according to EY. Bavaria, with the city of Munich and its high-tech qualities, has caught up and established itself as the second leading German start-up location.
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