Logo of the auditing company Ernst & Young (EY) in an office building in Duesseldorf (Germany). (picture alliance/dpa)
The number of financial infusions for start-ups in Germany has increased lately, but the total sums involved have declined, according to a study presented on Monday by the auditing and consulting concern Ernst & Young (EY). The analysis for the first half of 2020 showed an eight percent year-on-year rise in financing deals, but the total volume of these dropped by more than one-fifth to 2.2 billion euros. In the first half of 2019, investments in start-ups were more than 600 million euros higher.
Especially noteworthy were the locations of Berlin and the state of Bavaria. In the German capital, financing went to 149 start-ups, but the investment volume plunged by about one-half to 1.1 billion euros. In the southern state of Bavaria, by contrast, the number of financial infusions rose to 83 while the volume of investment more than tripled, from 204 million euros in the first half of last year to 773 million euros in the same period of 2020.
The figures show that Berlin remains the start-up capital of Germany, but that Bavaria is clearly catching up. "Munich is emerging as the second major start-up location," EY start-up expert Thomas Pruever said about the Bavarian capital city.
The situation was less rosy in other German states. In North Rhine-Westfalia as well as in Baden-Wuerttemberg and Hamburg both the number of start-up deals and the investments in them fell sharply in the first half of 2020, EY said.
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