German start-ups set record with AI and defence
The number of German billion-euro companies is growing, but many entrepreneurs look to the United States for capital and a stock-market listing.
According to new figures, Germany’s start-up sector is having a strong year. Artificial intelligence and defence technology are attracting investment, while the availability of European growth capital is lagging behind.
By the end of September 2026, approximately 8 billion euros in venture capital had flowed to German start-ups, according to data seen in advance from the Deutscher Startup Monitor. That is more than the approximately 7.5 billion euros raised in the whole of 2025. The Startup-Verband’s final monitor was due to be presented in Berlin on Monday.
The number of so-called unicorns is also rising. According to the data, ten new start-ups with a valuation of at least 1 billion euros were created this year. Germany would thereby reach 39 companies with that status, a record. Well-known German unicorns include Trade Republic, N26 and Personio.
Artificial intelligence is an important driver of the growth. AI is central to the product at 53 per cent of the start-ups surveyed, compared with 39 per cent in 2024. Defence technology is also attracting money. Companies such as Quantum Systems, Helsing and Stark Defense are cited as examples of businesses benefiting from higher investment in security and military technology.
The growth is not evenly distributed. According to the monitor seen in advance, the number of funding rounds overall is approximately a quarter below the 2021 level. Available capital is therefore becoming more concentrated among companies that are already large or operate in a rapidly growing sector.
For a possible stock-market listing, 62 per cent of start-ups are looking to the United States, according to the data, while 27 per cent name Germany as their preferred market. In addition, 89 per cent of founders say they need more venture capital from Germany and Europe. This points to a paradox: German companies are growing, but the financial ecosystem elsewhere is often more attractive for the next phase of growth.
The trend fits with the broader development of Germany’s start-up market. In the first half of 2026, 3,053 new start-ups were founded, according to the Startup-Verband and startupdetector, 52 per cent more than in the same period a year earlier.
The political question is therefore not only how Germany can create more companies, but also how businesses can grow without moving their stock-market listing or ownership abroad. The Startup-Verband is calling, among other things, for simpler financing and European rules that make it easier to scale up young companies.
One story, several perspectives
What is established
- AI and defence technology are attracting a large share of investment.
- The number of start-ups and billion-euro companies is rising.
- Many founders see the United States as more attractive than Germany for capital and a stock-market listing.
Left
Arguments Public money and defence investment should not automatically subsidise private profits. The government should primarily ensure that innovation also creates social value and that public knowledge does not pass cheaply to foreign shareholders.
Values Public control, social returns and democratic oversight of defence technology.
Consequences More conditions attached to subsidies could protect public interests, but could also reduce the speed of innovation and access to capital.
Centre
Arguments Europe needs a stronger financing ecosystem, with simple rules, research cooperation and oversight of risks. Both AI and defence can be legitimate growth markets.
Values Competitiveness, innovation and institutional reliability.
Consequences A European capital market could keep companies in Europe for longer without national governments having to assume every business risk.
Right
Arguments The growth shows that entrepreneurs primarily need room, capital and less bureaucracy. The state should limit itself to providing good conditions and strategic security.
Values Entrepreneurship, property rights and economic freedom.
Consequences Less regulation could enable faster scaling, but could also lead to greater dependence on private and foreign financiers.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key figures were checked against a dpa report and publicly available information from the Startup-Verband. Where the final monitor was not yet available, this is explicitly stated.
- confirmed By the end of September 2026, approximately 8 billion euros in venture capital had been invested in German start-ups. — Advance data from the Deutscher Startup Monitor, reported by dpa. source
- confirmed According to the new data, Germany had 39 unicorns. — Dpa report on the advance version of the monitor. source
- confirmed AI is central to 53 per cent of the start-ups surveyed. — Figure from the monitor described in the dpa report. source
- confirmed In the first half of 2026, 3,053 new start-ups were founded, 52 per cent more than a year earlier. — Tagesschau refers here to the Startup-Verband and startupdetector. source
Editor's note
The figures for 8 billion euros, 39 unicorns and 53 per cent AI use came from an advance version of the monitor. The final report publication was not yet fully available when this was written.Sources
- KI-Boom und Rüstung bringen Rekord bei Milliarden-Start-ups — Heidenheimer Zeitung / dpa
- Start-up-Boom trotz Krise: KI treibt Gründerszene zu immer neuen Rekorden — tagesschau
- Deutscher Startup Monitor — Startup-Verband