Changing venture capital market

While the Corona crisis had little effect on the €7.6 billion that was still coming into German startups in the first half of 2021, war and inflation had a significant influence.

Less than half of that amount (€3.1 billion) has been made accessible to startup businesses in the first half of this year. DeepTech businesses are setting the standard. The most funding was allocated to the software & analytics and energy sectors. The startup scene in Berlin is still booming, but other cities are catching up. For instance, Hamburg saw the completion of one of the biggest German deals. One of eCAPITAL’s portfolio companies, 1KOMMA5°, secured a fundraising round for €215 million, making it a unicorn.

Even though the number of start-ups has recently increased again, investors have become more cautious. However, genuine innovations continue to be successful in getting access to new funding, as demonstrated by the case of 1KOMMA5°. This is made possible, among other things, by established corporations, which have discovered the start-up world for themselves and not only develop products together with the young companies, but also participate financially.

In their essays „Ein Dämpfer für die Start-up-Szene“ and „Das neue Normal“, Stephan Finsterbusch and Maximilian Sachse critically examined the current state of the venture capital sector. The articles are accessible here (only in German).

Founded in 1999, eCAPITAL is an entrepreneur-led venture capital investor focusing on early- and growth-stage deep-tech companies with a positive impact on society. eCAPITAL is based in Germany and invests with its own funds with a total volume of over € 340 million in the areas of Sustainability, Enterprise Software, Cybersecurity, IoT and New Materials. In addition to financial resources, eCAPITAL offers its portfolio companies strategic support and access to an international network of entrepreneurs, scientists, investors and founders and was lead investor in various deep-tech companies such as sonnen, Novaled or Jedox, which were sold very successfully to international corporates or investors.

Bettina Schäfer
Hafenweg 24
48155 Münster, Germany
Tel.: +49 251 70 37 67 0