Green tech share in new German start-ups continues decline – report

The share of green technology start-ups as a proportion of all newly founded start-ups in Germany has decreased from 11 percent in 2024 to 9 percent last year (down from a peak of 17% in 2022), according to the GreenTech Monitor 2026 by the German Startup Association. While the total number of green tech start-ups held steady compared to 2024, it has fallen sharply since 2021 – from 545 down to 312 in 2025, the report found.

A resilient and reliable supply of energy has become a major focus for green tech start-ups, driven in part by the rapid expansion of artificial intelligence (AI), the report said. More than one third (34%) of all newly founded green tech start-ups in 2025 were focused on energy solutions.

However, the report also pointed out that German green tech start-ups working on energy are falling short of the funding necessary to stay competitive against start-ups in the US. Per capita investment in energy start-ups in the US between 2021 and 2025 was approximately 136 euros – more than double the amount invested in Germany (around 66 euros).

Despite the challenges facing green tech start-ups in Germany, 75 percent of green tech founders said that Germany is a more attractive start-up location than other European countries. Germany can further improve the situation by offering clearer regulations, more stable policy support, and more scaled funding options, the report said.

In "Energiewende" home country Germany, many start-ups take advantage of the energy transition, by bringing novel business ideas to market, and take market share from incumbents in sectors from renewables to heating, and from industry to mobility. Germany's green start-up scene used to be so lively the country has been dubbed a "Green Energy Valley".