New startups number goes down in Germany, but software defies the trend (Startup Verband 2023 numbers)

Some fields look bleak, with Germany underutilizing its regional potential.

The newest numbers from the German Startup Association (Startup Verband) on new startups for 2023 are available. What do they show us?

Number of new startups goes down

The boom year 2021 yielded the highest number of newly-founded startups so far. Lower levels of funding meant quite a slump for the second half 2022.

For 2023, we see a steady number of new businesses in the second half, with an overall decline of 5% year over year.

The anni horribiles of 2022 and 2023 with decreasing funding and steady layoffs leave their marks. One would think that the innovative power is channeled into new ventures. However, in times of economic instability this is not the case.

New ventures across Germany

When it comes to tech Germany is MUCH more decentralized than other affluent Western European nations. And yet, we don’t leverage the power of this decentralization enough!