From PitchBook, November 25:
Germany's government may have changed but appetite for Europe's second-largest VC hub has not as well-funded overseas investors continue to drive deal value to record levels.
German startups raised a record €11.3 billion (around $12.7 billion) in venture capital funding in the first three quarters of 2021, up over 70% from last year's overall total, according to PitchBook data.The rise was largely down to an increase in late-stage capital, but, as the majority of German VC firms are focused on early-stage deals, many have remained on the sidelines, with the country’s largest venture rounds not featuring any local backers....*****.... "The German startup ecosystem is itself still a bit young compared with markets like the US and in my view, that's why a lot of the investors are still focusing on the early stages and growth capital is largely coming from outside of Germany," Picus Capital partner and managing director Florian Reichert said.German investors were absent from rounds such as process mining software provider Celonis' $1 billion Series D in June and content platform Contentful's $175 million July Series F. US investors Durable Capital Partners and T.Rowe Price led the latter's financing, while Tiger Global led Contentful's round.
Compared with other European countries, the German VC industry still accounts for a tiny portion of economic activity. A report from German state-owned bank KfW found that VC investments in Germany represented 0.047% of GDP between 2017 and 2019, compared with nearly 0.1% in the UK....
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