Rapid Expansion and Job Creation in Munich Startups, Yet Women Remain a Minority in the Ranks
Munich, a city renowned for its rich history and culture, is now making a name for itself as a thriving hub for startups. The city's startup sector is experiencing significant growth, particularly in the health, finance, artificial intelligence (AI), and deeptech industries. These sectors are driving strong economic growth, contributing to job creation, and attracting substantial venture capital funding.
In 2024, Munich startups raised an impressive €2.3 billion, with another €970 million added in the first half of 2025. This robust funding and job creation underscore Munich’s strength as a leading location for young companies and innovation.
The city's startup ecosystem benefits from integration with local universities and strong ties to investors and corporations. The Technical University of Munich’s entrepreneurship hub UnternehmerTUM is a prime example. This hub supports startups through programs and connected venture capital, helping Munich maintain its status as a startup hotspot, comparable in importance to Berlin, another major startup center in Germany.
The growth in these sectors supports the city’s broader economic dynamism through high-value job creation, innovation spillovers, and attracting international investments. Munich's role as a key driver of Germany’s competitive startup ecosystem is further solidified.
Notably, Bavaria, where Munich is located, leads Germany in new startup formation, with a 23% increase in startups in early 2025, highlighting the regional ecosystem’s vitality.
Some of the most successful startups founded since 2010 in Munich include Celonis, Helsing, and Personio, with a combined market value of €77 billion. Well-known companies with female founders in Munich include yoummday and Mynaric.
In the deeptech sector, around 16,000 people in Munich are employed, accounting for 36 percent of all startup jobs. Artificial intelligence plays a major role in Munich's startup sector, with around 12,000 people working in this field.
However, the proportion of investments in purely female-founded startups was only one percent last year (previously two percent). This is a concern, as startups with at least one woman on the founding team create more jobs per euro invested than all-male teams in Munich.
Despite this, the total value of startups in Munich is €164 billion, with companies with over €100 million in capital employing an average of 180 employees. Startups without funding from investors employ an average of only 14 people after ten years.
Munich's startup sector continues to grow and evolve, offering exciting opportunities for innovation, job creation, and economic growth. As the city continues to attract investment and talent, it is poised to remain a key player in Germany's competitive startup ecosystem.
References: [1] Invest Munich. (2025). Munich Startup Ecosystem. Retrieved from https://www.invest-munich.de/startup-ecosystem [2] UnternehmerTUM. (2025). Our Programs. Retrieved from https://www.unternehmertum.de/programs [3] Startup Munich. (2025). About Us. Retrieved from https://www.startupmunich.de/about-us [5] Bavarian Ministry of Economic Affairs, Regional Development and Energy. (2025). Startup Ecosystem in Bavaria. Retrieved from https://www.bayern.de/en/startups-in-bavaria.html
- The Technical University of Munich's entrepreneurship hub, UnternehmerTUM, supports startups through programs and connected venture capital, contributing to the city's continued status as a startup hotspot.
- In the deeptech sector, around 16,000 people in Munich are employed, accounting for 36 percent of all startup jobs, with artificial intelligence playing a major role in the city's startup sector.
- Despite the concern of low investments in purely female-founded startups, which constituted only one percent last year, startups with at least one woman on the founding team create more jobs per euro invested than all-male teams in Munich.
- Startups in Munich offer exciting opportunities for innovation, job creation, and economic growth, as the city continues to attract investment and talent, positioning itself to remain a key player in Germany's competitive startup ecosystem.
