The DACH startup ecosystem has entered a new chapter—defined by strategic focus, technological depth, and growing geopolitical relevance.

Now in its third edition, our DACH Startups Decoded report charts how the region has carved out a distinct identity: a powerhouse for B2B innovation and deep technology, amplified by a uniquely distributed network of thriving hubs.

Between Q3 2024 and Q2 2025, we recorded 2,049 funding rounds totalling $12.1 billion across 1,949 companies, creating one of the most detailed datasets on the region’s venture landscape. What emerges is a story of resilience, transformation, and global ambition.

Highlights from this year’s report

• Germany pulls ahead: Venture funding reached $8.47B (+22%), putting it 32% ahead of France. Switzerland continues to lead Europe in per-capita investment at $352 per person.
• Defence tech surges: Funding hit $1.4B (+315%), reflecting rising interest in resilience and technological sovereignty, even as enterprise software funding slipped.
• AI shifts gears: From core tech to applied use cases — enterprise AI and industrial AI are now the fastest-growing categories.
• Munich takes the crown: With $3.44B raised, Munich overtakes Berlin, while Switzerland proves its distributed strength with five cities in the top 10.
• Hiring slows in the AI era: Seed-stage companies in 2024 hired 32% fewer employees than in 2022, while post-Series A hiring fell 25%.

Behind these numbers is a region at an inflection point. Stable funding levels over the past three years suggest a healthy, sustainable ecosystem. But challenges remain: late-stage capital is scarce, bureaucracy is high, and hardware-intensive sectors face rising tariff risks.

Christian Noske, Berlin-based Partner of NGP Capital, comments:

“The DACH region's greatest strength has always been its ability to transform complex problems into practical solutions. In a world facing increasing security concerns and the urgent need for sustainable industrial transformation, this capability is more valuable than ever. The startups emerging from this ecosystem have a genuine opportunity to solve global problems and build a better future.” 

The opportunity for DACH-based startups is to turn this stability into breakthrough innovation. From defence and AI to industrial transformation, startups across Germany, Switzerland, and Austria have the potential to shape global markets and solve pressing global challenges.

👉 Read the full DACH Startups Decoded 2025 report →

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