A concerning trend is emerging within Germany’s vibrant tech startup scene, with a significant number contemplating relocation due to a perceived lack of venture capital. A recent survey conducted by Bitkom, the German Association for Information Technology, reveals that 26% of young companies are actively considering moving operations abroad due to the challenges in securing necessary funding.
The data highlights a noticeable shift in investor sentiment. A substantial 81% of startups report a reluctance from investors, attributed to the current economic climate. Furthermore, only 23% believe that Germany currently offers sufficient venture capital resources to support their growth.
While the potential for relocation is a worry, there isn’t a clear consensus on preferred destinations. Among those considering a move, 28% are eyeing the United States, while 25% are leaning towards another European Union member state and another 25% are considering a non-EU European country. A further 23% remain undecided or declined to specify potential destinations.
Despite the capital concerns, the prevailing sentiment among startups anticipating funding needs in the next two years remains cautiously optimistic. A majority – 79% – believe it’s either very likely or rather likely they will successfully complete their financing rounds. Only a small minority (19%) expresses doubt about securing funding.
Looking toward long-term growth, an IPO remains a viable option for a majority of startups, with 53% stating they can envision a public offering. A near split exists regarding potential stock exchanges, with 40% considering a foreign listing and 45% favoring a German exchange.
Bitkom Research conducted the survey, collecting data from 152 German tech startups between March and May 2025. The findings underscore the crucial role of continued investment in supporting the sustained growth and competitiveness of Germany’s technology sector.