Venture Capital Dashboard Q1 2026 (KfW)

Summary

• Funding was evenly distributed across development stages, with €726 million invested in startups (Series A/B) and €714 million in scale-ups (Series C+).p.3
• More than three-quarters of total capital invested in German startups originated from international investors, with US investors serving as the primary source of capital.p.4
• Artificial intelligence applications accounted for €967 million across 71 deals in Germany, capturing 58% of the total German market volume in Q1 2026.p.8
• Global VC activity was heavily concentrated in US mega-deals, where four AI leaders (OpenAI, Anthropic, xAI, Waymo) raised a combined $188 billion.p.9
• German VC exit activity recorded 32 transactions in Q1 2026 (31 acquisitions, 1 buyout), while IPO activity remained non-existent since Q3 2024.p.10
• The German venture debt market saw 20 completed financing rounds in Q1 2026, outperforming the quarterly average of the record year 2025.p.11

Key insights

1. The German VC market started 2026 with a solid €1.7 billion in deal volume, driven by broad market activity rather than mega-deals.p.4
2. Health startups generated the highest deal volume share in Germany at 18%, followed closely by Fintech at over 15%.p.7
3. Four US AI companies accounted for nearly three-quarters of total US venture capital volume in Q1 2026.p.3
4. France is solidifying its position as a major European AI hub, highlighted by a landmark $1 billion seed funding round.p.9
5. German startup exits registered a steady start with 32 transactions, though public listings remain completely stalled.p.10
6. German venture debt activity remained resilient with 20 deals, continuing its strong multi-year growth trajectory.p.11