At the end of 2019, 11 start-ups not listed on a stock exchange were valued at at €1 billion ($1 billion) or more, according to association data shared with dpa.
By the end of 2024, there were 28 such companies, which are called “unicorns” in industry jargon. The number had been as high as 34 in 2023.
The most valuable start-ups in Germany currently include long-distance bus operator Flix, AI translation service DeepL, online broker Trade Republic, arms company Helsing, software company Celonis and the mobile bank N26.
Recently, investors have been directing money to start-ups that focus on artificial intelligence (AI) and defence.
“The reason for the increasing number of unicorns is technological innovations, including AI and cloud computing, which are accelerating exponentially,” said Hendrik Brandis, co-founder of the venture capital firm Earlybird.
“It would have been unthinkable in the past to achieve unicorn status within five years,” he said.
During the coronavirus pandemic, start-ups had benefited from a digitalization boom and low interest rates.
The path has been rockier since then. Interest rates have risen and many growth companies have run into financial difficulties. Some start-ups cut jobs, while others filed for bankruptcy, such as the electric aircraft manufacturer Lilium.
Source: dpa.com