Financing for start-ups is becoming much more difficult

Working in a start-up

Venture capitalists have become more choosy and cautious.

(Photo: Hero Images/Getty Images)

Berlin The record year was followed by a sudden crash: After start-ups hardly had any problems raising fresh money in 2021, investors are becoming significantly more cautious in view of the interest rate hike, the Ukraine war and global economic concerns.

According to calculations by the data service provider Refinitiv for the Handelsblatt, venture capitalists invested around eight billion euros in German start-ups from January to November. In the entire previous year, the sum was almost twice as high. At the same time, there were only 589 deals this year, compared to a total of 653 in 2021.

“2022 is the year of disillusionment. The hangover after the party year 2021 is now big,” says Julian Riedlbauer, partner at the consulting firm GP Bullhound.

Instead of buying into every startup, venture capitalists have become more selective and cautious. Negotiations drag on, investors demand more security for themselves, which is reflected in the contract terms and makes life more difficult for start-ups.

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