Investment in German start-ups slumps 43% in 2022 - Berlin News
by IANS | Updated Jan 11, 2023
The number of large deals of more than 50 million euros also dropped by around half last year, Xinhua news agency reported.
"With the cost of capital rising and valuations falling, investors are paying more attention to profitability than to long-term growth promises," said Thomas Pruever, partner at EY, on Wednesday.
"Young companies are being challenged to adapt to this and to show a clear path to profitability."
Software and analytics companies in Germany collected by far the most venture capital in 2022, with 3.2 billion euros, according to EY.
The Berlin-based InsurTech company wefox, and the software start-up Celonis from Bavaria achieved the highest financing round, with 399 million euros each.
A survey among young companies by the German Startup Association in September 2022 showed that "uncertainty among start-ups has increased significantly" as a result of economic and political turmoil. However, the situation was still "much more positive than the Covid-19-year 2020." (1 euro = 1.07 US dollars)
- Death toll in suicide bombing in Pakistan mosque reaches 72
- Covid-19 still int'l health emergency: WHO
- Palestinian killed by Israeli soldiers in southern West Bank: Medics
- Iran summons Ukraine's envoy over presidential aide's tweet about Isfahan drone attack
- Israeli citizen arrested after crossing into Lebanon
- Egyptian Prez, US state secretary discuss Israeli-Palestinian tensions
- 331 migrants rescued off Libyan coast in past week: IOM
- Croatian Prez criticises NATO chief's visit to S. Korea, Japan
- Turkey may evaluate NATO applications of Finland, Sweden separately: FM
- Hungary reports strong tourism rebound in 2022