German Cabinet Approves Startup Strategy to Boost Access and Competitiveness
Germany's New Startup Strategy: Key Measures and Impacts
Overview of the Cabinet's Approval
BERLIN, July 22 (Reuters) - Germany's cabinet is expected to approve a comprehensive startup strategy on Wednesday aimed at improving access to finance, attracting skilled workers and cutting bureaucracy for newly founded companies, according to a government paper seen by Reuters.
Main Features of the Startup Strategy
Comprehensive Measures to Strengthen Startups
• The 36-page strategy, led by the economy ministry, contains 152 measures to strengthen innovative startups and help more young firms scale up and remain in Germany.
Record Growth in Startup Formation
• The plan comes after a record 3,053 startups were founded in Germany in the first half of 2026, up 52% from the second half of 2025.
Startups as Growing Employers
• Startups are also becoming more important as employers, with 522,000 people working for them in 2024, 26% more than four years earlier.
Challenges and Strategic Goals
Turning Startups into Growth Companies
• The paper says Germany still struggles to turn successful startups into growth companies: venture capital investment reached €7.2 billion in 2025, far below levels in the United States and Britain.
Mobilising Private Capital
• The strategy aims to mobilise more private capital for sectors including technology, biotechnology and defence.
Future Fund Extension
Government-Backed Venture Capital Initiatives
• The Future Fund — a German government-backed venture capital programme launched in 2021 — will be extended beyond 2030.
(Reporting by Maria Martinez and Christian Kraemer; Editing by Alexandra Hudson)
