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I read recently about Germany €30 billion startup plan, I was intrigued. Has the country become envious of La French Tech? Does it hope to rival Britain after Brexit? Perhaps both, but there’s also a national purpose — to ensure that the profits from local successes stay at home. Let’s explore. — Anna
Second, third or eighteenth?
European startups have been overcoming the decline in venture capital quite well and funding is down slightly in the second quarter compared to the first three months of 2022.
However, German startups fared worse: according to EY, they have collectively raised 20% less capital in the first half of 2022 than in the same period last year. This includes private equity, but venture capital fell even more sharply, from €4.44 billion to €2.89 billion (which is about the same amount in US dollars.)