German Venture Capital Barometer 2nd Quarter 2026 (KfW)

Summary

• The German venture capital business climate indicator fell by 10.2 points to -35.8 points in the second quarter of 2026.p.1
• The current business situation indicator fell by 18.6 points to -41.2 points, while business expectations declined slightly by 1.8 points to -30.4 points.p.1
• The overall exit climate dropped by 15.0 points to -56.3 points, reaching a three-year low.p.2
• The IPO climate indicator rose by 5.9 points to -37.2 points, driven by a 10.5-point increase in expectations to -31.7 points.p.2

Key insights

1. Macroeconomic uncertainty and key interest rate hikes by the ECB continue to weigh heavily on market sentiment.p.1
2. Deterioration in early-stage investors' assessments of current business conditions drove the overall climate decline.p.1
3. The fundraising climate experienced extreme volatility, dropping by 36.2 points to -33.8 points.p.2
4. Investor sentiment regarding secondaries dropped by 9.9 points to -63.9 points, hitting a new all-time low.p.2
5. The IPO climate component showed slight recovery, climbing 5.9 points to -37.2 points primarily due to positive expectations.p.2
6. The second quarter of 2026 was the strongest in four years in terms of deal volume, reaching EUR 3.4 billion.p.2
7. Investor satisfaction with entry prices for new investments declined further, with the indicator falling by 4.9 points to -6.8 points.p.2