Investors – financing for start-ups collapse – economy

Investments in Berlin start-ups collapsed after an extraordinarily good year in 2021. Last year, growth companies in the capital raised around 4.9 billion euros in venture capital from investors. That was less than half of the previous year’s figure, according to an analysis published on Wednesday by the consulting and auditing company EY. Nationwide, investments collapsed by 43 percent to 9.9 billion euros – in 2021 Berlin alone had topped this value (10.5 billion euros). In Germany as a whole, 2022 was the second best year for start-ups since the data was collected. Start-ups depend on investors because they don’t initially make any profits. Large funds and corporations invest money in young companies in the hope that their ideas will prevail. In view of rising interest rates and the uncertainty surrounding the Ukraine war and the economy, investors’ money was no longer so easy.

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