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Next Generation Report 2025: Bavaria again tops the list for new start-ups

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The latest Next Generation Report by the Startup Association and startupdetector shows a sustained upward trend in new startups in Germany in the first half of 2025. With a total of 1,500 new startups nationwide, an increase of 9% was recorded compared to the second half of 2024.

Growth is particularly strong in Bavaria: With 343 new start-ups, the state is once again ahead of Berlin, recording growth of around 23%. This confirms the trend of recent years, in which Bavaria has played a central role in the German startup ecosystem.

Munich in 1st place in city comparison

In the ranking of cities by start-ups per 100,000 inhabitants, Munich is once again in first place for the first time, ahead of Berlin and Heidelberg. The city benefits from its dense university landscape, established start-up structures and an active innovation scene. Smaller research-related locations such as Darmstadt, Aachen and Karlsruhe were also able to position themselves well in the city comparison.

Growth drivers and industry trends

In addition to Bavaria, Saxony (+71%) and North Rhine-Westphalia (+16%) are also among the most dynamic regions. Overall, the software sector remains the fastest-growing sector with an increase of 16%. At the same time, other sectors such as industrial solutions (+29%) and the food sector (+44%) also recorded significant growth - a sign of the increasing diversity in the startup ecosystem.

Insights and regional significance

The figures underline the importance of strong regional networks and structures for the development of the German startup ecosystem. Start-up centers, universities and regional support services play a central role in the establishment and development of young companies.

As part of the ecosystem, we are particularly pleased that Munich and Bavaria are once again at the forefront in this environment - even if this success is of course due to many committed players working together. We see this as confirmation that long-term support, collaboration and an open culture of innovation work.

You can find the full report with further details on regions, sectors and developments here:
📄 Next Generation Report 2025 (PDF)