Germany loses ground in funding for startups
Germany has lost ground to its main European competitors in investments for startups during the coronavirus pandemic, analysts said.
Last year, the volume of investor funding fell 15% to just under 5.3 billion euros ($ 6.4 billion), while France and Britain were able to increase their financing, according to a study by the audit and consulting firm EY.
Startups in France received cash injections of 5.2 billion euros, an increase of 3.4%. Britain extended its lead despite Brexit, and companies there received € 13.9 billion, a quarter more than in 2019, as the number of funding rounds doubled.
The table is similar in the ranking of individual cities: while the startup scene in London alone received an amount of 10.5 billion euros, Paris came in second with 3.9 billion, with Berlin with just over 3 billion euros.
In 2019, the stronghold of German startups is ahead of Paris. Munich is in sixth place.
Neither the pandemic nor Brexit slowed funding for startups across Europe last year, according to the analysis.
Thanks to a record second half-year, total startup funding increased by 17% compared to 2019 to 36.5 billion euros.