What do DeepL, Enpal, Helsing, Instragrid, and Osapiens have in common? They are all German startups that have secured some of the largest funding rounds in 2024, reflecting Germany’s growing influence in the European tech funding ecosystem. In fact, this year alone, there have been approximately 145 funding rounds for German AI companies. Let’s look closer at each of them.
DeepL, a German unicorn in AI-powered language translation, recently raised $300 million at a valuation of $2 billion. The round was led by Index Ventures and supported by various global investors, showcasing its rapid global growth and demand in over 60 markets.
Perhaps most striking is Helsing’s achievement in defence technology. It closed a €450 million Series C round at a $4B valuation, led by General Catalyst and with participation from notable investors such as Accel and Saab—Helsing plans to use these funds to enhance European defence capabilities and expand its R&D.
Instagrid, a portable battery systems company, raised $95 million in Series C at a valuation of $450 million. The round was led by High-Tech Gründerfonds, SET Ventures, Ontario Teachers’ Pension Plan, Pierre-Pascal Urbon, Energy Impact Partners (EIP), Blueworld.group, and Morgan Stanley Investment Management. The company plans to build on its technology with this funding and introduce more category-defining products.
Meanwhile, Osapiens, a rapidly growing startup specialising in supply chain optimisation through advanced technologies, closed a $120M Series B financing led by Growth Equity at Goldman Sachs Alternatives. The company will use the funds to accelerate international expansion and further invest in its technological platform.
Enpal’s securing of a €1.1 billion debt vehicle from banking powerhouses Barclays Europe, Bank of America, and Credit Agricole CIB in the clean energy sector marks a watershed moment. This financing will enable the solar installation pioneer to serve 35,000 new customers with cutting-edge green energy solutions.
One thing is clear – Germany is brimming with innovation
Germany is rapidly emerging as a seedbed for innovation in Central Europe, earning it the nickname “Silicon Valley of Europe.” According to Dealroom’s findings, Germany is cementing its position as a key player in Europe’s tech ecosystem, attracting substantial venture capital investment, particularly in AI and sustainability.
Filip Lukac, CEO of Sloneek, an HR management AI tool that recently secured €3.6 million, said: “Central Europe boasts a well-educated and technically skilled workforce, which gives startups a competitive edge.” Speaking to TFN, Mario Kohle, founder and CEO of Enpal, shared: “Germany has a strong mix of research institutions, universities, and public funding that attracts talent and fosters innovation. Investors seek the technological breakthroughs that emerge from these startups.”
Dr Moritz Belling, Principal at Earlybird Capital, echoed this sentiment, further emphasising Germany’s industrial base: “Many large established companies and SMEs are eager to collaborate with startups as suppliers, customers, and co-development partners.”
Munich and Berlin pop up as innovation hubs in Germany
According to Dealroom data, German deep tech companies have raised an impressive €1.7 billion across 78 deals this year, surpassing last year’s €1.43 billion. Some of the largest tech funding rounds in Europe in 2024 were dominated by German deep techs, including Black Semiconductor ($273M), Sunfire ($233M), and Quantum-Systems ($111M).
Munich is making its mark as an emerging city for deep tech and AI startups. The Technical University of Munich (TUM) is a leading technical university and a wellspring of scientific and technical talent, one of the contributing growth factors. “Another driver is the proximity to the established industry, including to the established defence primes, explained Paula Wehmeyer, partner at General Catalyst in Berlin, to TFN. Furthermore, several deep tech companies — Isar Aerospace, Marvel Fusion, and Lilium- have risen as role models — all part of the Earlybird portfolio.
When it comes to technological innovation, Berlin leads the way as Germany’s tech hub. “We can build companies like Enpal in Berlin because of its great ecosystem, built by people like Alexander Samwer and Lukasz Gadowski,” explained Kohle.
Defence tech is also surging
The State of Defence Investment 2024 noted that Germany is still catching up with Europe’s surge in defence tech. Speaking to TFN, Wehmeyer shared the reasoning behind it: “Germany has also attracted more funding into defence tech since 2018 than any other country in Europe, according to figures from Dealroom. The ambition of founders in Germany is growing. They have seen some of Europe’s best tech companies built in a short space of time – not just Helsing but also Auto1, Soundcloud and N26 – and are inspired to build companies with similar success and reach.”
According to Dealroom data on the sector, Europe is at the centre of this step-change in investment. European investments outpace the growth of investments across wider NATO countries and its allies by 25%. Total venture capital raised in Europe since 2018 for defence tech startups and scaling companies now totals $3bn.
Now Germany, the UK and France have captured 87% of this total investment, having raised $2.2 billion between them since 2018. Germany alone has raised more in the past six years than the Nordics, Netherlands, Switzerland and the UK combined. In particular, Munich has attracted the most investment of all European cities since 2018, partly thanks to Helsing raising $487m in 2024. Bristol is the next leading European city for defence investment, followed by Paris. Six of the top 10 European cities for defence tech investment are in the UK, with London (4th), Reading (5th), Oxford (6th), Leeds (8th) and Cambridge (9th).
Challenges in the investment process
Despite the rise, like most of Europe, startup founders in Central Europe are also facing several significant challenges when raising capital. The regulatory environment presents a primary hurdle, with varying regulations complicating cross-border fundraising. Administrative burdens and the need to build public trust follow as ventures must comply with local laws and effectively engage their target audience.
“One of the key challenges for tech startup founders in Central Europe is securing large-scale investments, particularly in the growth stages. We need to create an environment that ensures that start-ups founded here can also grow here. While early-stage funding from government programs and business angels is relatively accessible, there is a significant funding gap when it comes to scaling up,” Belling explained to TFN.
In a conversation with TFN, Wehmeyer outlined another challenge: “In patent application, Germany continues to lag far behind China and the US. This makes it harder to develop real-world applications from technology breakthroughs.”
Other hurdles include German and EU support, which requires more funding sources, especially for deep tech companies. “More needs to be done, especially bureaucratic burdens need to be lowered,” noted Kohle.
Nevertheless, the German government has recognised this problem and is encouraging more involvement from strategic and international investors. For example, the government’s new “WIN Initiative”, presented in September, is a first step in the right direction. The initiative aims to improve Germany’s tax, legal and financial frameworks so that young, innovative companies have easier access to private capital.
Advice from industry leaders
Drawing from their experiences, tech industry leaders offer strategic advice that can serve as a valuable guide for navigating Central Europe’s startup landscape:
“Leverage government-backed funding, connect with business angels, and build relationships with established companies. Do not wait to build a global network early on,” – Dr Moritz Belling, Principal at Earlybird Capital.
“Build a network of scientists and incumbents early on to leverage that at the later stages of the journey. Build a network of alternative funding sources early in your journey (e.g., banks for project financing in deeptech). Keep talent density high – don’t shy away from hiring top talent,” – Mario Kohle, founder and CEO of Enpal.
Lean on the region’s strengths in areas like engineering and manufacturing to build a strong foundation for your startup,” – Paula Wehmeyer, partner at General Catalyst in Berlin.
“Focus on data and rapid decision-making, but the most important thing is good hiring and people-oriented management! With the right data, you can adapt your strategy in real-time and manage resources more effectively,” – Filip Lukac, CEO of Sloneek.
“Early on, establish your brand’s value proposition clearly and ensure it resonates with local and global audiences to help foster long-term growth and awareness,” – Benjamin Berényi, co-founder and CEO of PastPay.
The message is clear: While Silicon Valley still commands industry standards, Germany’s combination of industrial might, technical innovation, and institutional support creates a distinctive and powerful tech ecosystem that increasingly attracts global attention and investment.
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