German startups could use more venture capital, but Germany’s government has a plan

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Reading recently about Germany’s 30 billion plan for its startups, I was intrigued. Did the country start to envy La French Tech? Is it hoping to rival post-Brexit U.K.? Perhaps both, but it also has a national goal — making sure that profits from homegrown successes stay home. Let’s explore. — Anna

Second, third, or eighteenth?

European startups have been weathering the venture capital downturn quite well, and funding declined only slightly in the second quarter compared to the first three months of 2022.

German startups, however, had it worse: According to EY, they collectively attracted 20% less capital in the first half of 2022 than during the same period last year. This includes private equity, but venture capital declined even more sharply, from €4.44 billion to €2.89 billion (which is roughly the same amount in U.S. dollars.)

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