A significant shortfall in venture capital funding is prompting a worrying number of German tech startups to consider relocating their operations abroad. According to a new survey released this week by Bitkom, the German Association for Information Technology, 26% of young companies are actively contemplating moving overseas due to the lack of available investment.
The survey, which polled 152 German tech startups between March and May 2025, revealed that 81% of respondents have observed a cautious approach from investors, reflecting the current economic climate. Only 23% believe there is sufficient venture capital readily accessible within Germany.
While startups weighing emigration have not indicated a clear preference for a destination country, the United States is a commonly considered option for 28% of those surveyed. A quarter of respondents (25%) are considering relocation to another EU member state, with an equivalent proportion (25%) looking at opportunities in non-EU European countries. A further 23% are undecided about potential destinations, or declined to comment.
Despite concerns surrounding funding, the majority of startups anticipating the need for fresh capital in the next two years remain cautiously optimistic. Nearly three-quarters (79%) believe it is either very likely (29%) or likely (50%) that they will successfully complete their funding rounds. Only a small minority (19%) express concerns, with 17% considering it unlikely and 2% deeming it very unlikely.
The possibility of an initial public offering (IPO) remains an attractive option for a slight majority (53%). A considerable portion (40%) envision listing on a foreign stock exchange, while 45% favor a German exchange. The findings highlight the increasing pressure on the German startup ecosystem and the potential for talent and innovation to be lost to other regions if funding challenges are not addressed.
