GovTech Startup Monitor 2026 (Startup-Verband)

Summary

• 83% of surveyed startups consider their solution usable by public administration, but only 42% have applied for public contracts and only 24% have won one.p.3
• Only 11% of startups see Germany's GovTech potential as exhausted.p.3
• B2G revenue made up 7.0% of startup revenue in 2025, up from 4.7% in 2021.p.7
• Germany has around 15,000 startups with a B2B focus that could be relevant for the public sector.p.8
• Startups report a median public procurement duration of 24 weeks, while six weeks would be acceptable to them.p.17
• Only 30% of startups rate their collaboration with the public sector positively, while 38% rate it as (very) poor.p.24
• 77% of startups say current procurement favours established providers, and 92% want more focus on results over processes.p.3

Key insights

1. The federal administration spent over €600 million on software licences, a large share going to a few big providers.p.9
2. 57% of startups see the AI boom as a window to win public contracts, but only 20% rate the administration's willingness to cooperate as high.p.10
3. Only 11% of startups rate cooperation with the public sector as more attractive than the B2B market.p.11
4. 72% of startups cite overly complex tender documents as a hurdle, and 61% cite extensive reference requirements.p.17
5. Eight of ten startups find it hard to identify the right contact in the administration, 32% even very hard.p.18
6. 86% of startups cite long decision processes as a hurdle in collaboration, followed by high risk aversion at 63%.p.26
7. 70% of startups that have never worked with the state could imagine entering B2G if conditions improved.p.30
8. For startups, faster decision processes (73%) and startup-friendly procurement law (71%) are the key levers.p.33
9. Startups most often collaborate with other startups (43%) and consultancies (37%) on public contracts.p.34