Germany's Deep Tech Sector Drives Growth in VC Funding
German startups are experiencing a surge in venture capital funding, driven by strengths in deep tech and defense. In the first half of 2026, VC investment reached €6 billion ($6.8 billion), with Q2 deal value at €2.1 billion aligning with historical averages. The country is on track for its highest annual deal value since 2021, outpacing growth rates in France and the UK. Key contributors to this acceleration include deep tech investments such as Berlin-based drone maker Stark (€500 million) and Isar Aerospace (€270 million). The largest single investment of the year was Neura Robotics' $1.4 billion Series C round, highlighting Germany's leadership in robotics innovation. Despite strong early-stage momentum, late-stage funding remains a challenge with H1 2026 deal value trailing that of 2025. Exit activity is also subdued, with only one high-profile acquisition reported so far.
Topics: deep tech defense Germany startups VC funding