Berlin Startup Ecosystem Report 2025

Berlin, Feb. 20, 2026 – Anyone looking to launch a company in Berlin is in good company. The German capital’s startup scene continues to combine flexibility with long-term promise, fueled by strong venture capital activity and a deep pool of entrepreneurial talent. The growth potential remains substantial.

That momentum is also reflected in a new generation of founders emerging from Berlin’s homegrown success stories, including Zalando, HelloFresh, N26 and Delivery Hero. Former employees of these flagship companies are launching ventures of their own, among them Flink and onu.energy. In total, Berlin’s mature startup ecosystem accounts for 94,000 local jobs. The share of international talent is likewise high.

These findings are detailed in the newly releasedThe Berlin Tech Ecosystem Report 2025. Published by the Senate Department for Economic Affairs, Energy and Public Enterprises, the report provides a comprehensive, data-driven analysis of Berlin’s startup landscape. It compiles key metrics, trends, challenges and expert assessments, offering insight into sector strengths, structural hurdles and policy recommendations.

The 2025 edition focuses on Berlin’s tech ecosystem and backs a bold thesis with equally strong numbers: With a total valuation of €169 billion among venture-backed startups, Berlin is Germany’s largest tech hub and remains the country’s leading startup ecosystem. The broader Berlin metropolitan region is home to 57 unicorns and thoroughbreds.[1] Unicorns include Auto1 Group and ATAI Life Sciences. Thoroughbreds in Berlin include  kfzteile24, McMakler and Babbel.  The city also counts more than 1,400 venture-backed startups. Enterprise software, climate tech and fintech are among the ecosystem’s primary growth drivers. In climate tech, Berlin ranks fourth in Europe, with more than 340 startups and €800 million in total VC investment. Companies based along the Spree include Enpal, which provides residential solar solutions; Cloover, a developer of digital finance and leasing services; Veganz, a producer of plant-based food products; and Lemmo, which focuses on sustainable mobility solutions.

In artificial intelligence, Berlin ranks third in Europe. The capital region is home to more than 9,000 AI specialists engaged in frontier AI research.  Over the past decade, Berlin has produced an average of more than 120 new VC-backed startups each year. Some 37% of early-stage Berlin startups advance to Series A funding – a higher seed-to-Series A conversion rate than Munich, London or Paris. Between 2020 and 2025, 17% of VC capital in Berlin went to female founders or startups with women in leadership roles, including Mambu, HER ONE, Urbanara and Doctorly. Observers attribute this, in part, to the city’s strong support infrastructure and funding landscape. Public initiatives such as the Berlin Startup Scholarship and IBB Ventures complement private hubs including the Merantix AI Campus and Betahaus, providing founders with resources, networks and growth opportunities.

The report also highlights key challenges. Berlin remains more reliant on foreign capital in early-stage financing than many other startup hubs. In high-growth sectors such as AI and fintech, the city faces direct competition from London and Paris. Within Germany, Munich continues to dominate university spinouts. Even so, the overall picture is clear: Berlin continues to position itself as one of Europe’s most important startup hubs, offering a dynamic, internationally connected ecosystem with significant growth potential.