Last year, many start-ups in northern Germany benefited from generous financial backers. In Hamburg alone, for example, investors put around 547 million euros into young companies in the city, according to an analysis published on Wednesday by consulting and auditing firm EY. A total of 67 start-ups in the city were funded in this way. Some 200 million euros of the total reportedly went to companies involved in software and analytics, 25 million euros to e-commerce firms, and 14 million euros to young companies focused on mobility. In 2021, the investment total had stood at 459 million euros.
In the state of Schleswig-Holstein, around 100 million euros was invested in 11 new companies in 2022. The year before, the figure was only 20 million euros. In 2022, investors in the state, which lies between the North Sea and the Baltic Sea, reportedly gave 27 million euros to start-ups in the software & analytics sector and half a million euros to mobility company founders.
Nationwide, venture capital lending slowed significantly in 2022, according to the consulting firm: Around 9.9 billion euros in venture capital was raised from backers last year - 43 percent less than in the previous 12 months, EY said.
Start-ups rely on investors because they don't make a profit initially. Large funds and corporations put money into young companies in the hope that their ideas will catch on. However, in view of rising interest rates and the uncertainty surrounding the Ukraine war and the economy, investors' money was no longer flowing as freely last year.
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