Annual report 2025
Berlin, March 02, 2026 - The start of a new year offers an opportunity to look back. What worked well in the past months, where is there room for improvement, and what direction should the coming year take? Berlin Partner, the city’s economic development agency, addressed these questions as it presented its 2025 annual report at a press conference in Berlin. The overall message is encouraging. Berlin continues to stand out as an attractive location for innovation and investment. The facts and figures for 2025 were presented by Franziska Giffey, Berlin’s Senator for Economic Affairs, and Dr. Stefan Franzke, CEO of Berlin Partner.
With a total investment volume of €970 million, Berlin recorded its third-best result in the past 15 years. In 2025 alone, Berlin Partner supported 96 innovation projects, which together secured €172 million in research and development funding, an increase of 19% compared with 2024. Through targeted initiatives such as technological modernization, investment support and public funding programs, Berlin Partner also plays a key role in strengthening the city’s labor market. In 278 successful projects, the agency helped create or secure 7,639 jobs – including 4,560 newly planned positions and 3,079 jobs safeguarded. Berlin also remained an attractive destination for businesses. Seventy-four companies established operations in the city in 2025 with support from Berlin Partner, including 37 international firms. About 28% of these international investments came from other European countries.
Berlin remains Germany’s leading startup hub. Berlin once again reinforced its position as Germany’s startup capital, both in terms of funding rounds and total investment volume. With 2,018 financing rounds, the capital region outpaced other major German startup hubs such as Munich and Hamburg. Berlin-based startups raised around €2.7 billion in venture capital, an increase of 23% compared with 2024. Particularly strong growth was recorded in software and analytics as well as FinTech and InsurTech. Berlin also continues to lead the country in the field of artificial intelligence. Around the Spree River, 283 AI startups are based in Berlin – roughly 30% of all AI startups in Germany. To further strengthen this ecosystem, the #ai_berlin_hub was launched in 2025. The initiative is designed to support collaboration across the AI community and further position Berlin as one of Europe’s leading centers for artificial intelligence.
Dr. Stefan Franzke, CEO of Berlin Partner: “The figures send a clear message: Berlin remains a dynamic center for innovation and investment. Achieving the third-highest investment volume in our organization’s history – despite challenging economic conditions – underscores the capital’s long-term competitiveness. The strong growth in research and development and the continued momentum of our startup ecosystem further highlight Berlin’s appeal. At the same time, Germany’s economy has been stagnating for more than three years, and we are not immune to that reality. That makes it all the more important to continue promoting Berlin at home and abroad, to articulate clear prospects and to send a strong signal: Berlin is a city of freedom – a place where people can develop their ideas, experiment boldly and shape progress.”
Looking back also helps define the path forward. Looking ahead, Berlin is also focusing on emerging innovation fields. In response to growing challenges in the area of digital and technological security, the Berlin Senate has tasked Berlin Partner with developing a DefTech ecosystem. The goal is to connect research institutions, businesses and policymakers to accelerate security-related innovation while also encouraging company relocations and startup formation in this sector. The initiative focuses on highly innovative technology fields and key technologies such as cybersecurity, artificial intelligence, drone technology, health tech and robotics. More than 400 companies in Berlin are already active in the dual-use sector, developing technologies that can be applied in both civilian and security contexts. Looking ahead, defense technology is expected to become an increasingly important driver of innovation and economic growth for the Berlin economy. The coming months will show how this emerging field further expands Berlin’s position as a leading technology and innovation hub.
Further information and the 2025 annual report are available for download here.
© Berlin Partner | Photothek / Media Lab
