The top five sectors in terms of securing VC investments are; Health, Mobility, E-Commerce, Software & Analytics and Financial or Insurance Technology (Fin/Insur Tech). The overall development of these sectors within last five years in terms of funding value is shown in Figure 1.
Figure 2 shows that 2021 has the highest number of rounds and funding value (M€) for past five years for these five sectors, total VC representation is slightly more than 45%. The first half of 2022 was not so bad as its share in number of rounds compared to 2021 could barely match at this pace while it would be higher than rest of the four years.
The funding share for these sectors in H1 2022 is good as compared to other years except 2021, where it is very far from the share in 2021 and at this rate it would go slightly above have of the amount in 2021 as illustrated in Figure 3.
The amount of VC funds allocated to each sector per year is illustrated in Figure 4 . The current VC trend is towards Software & Analytics startups, which grew progressively from 2018 till 2021, but in H1 2022 the share of investments in this sector is fairly higher than other sectors and at this pace its share would be even higher than previous year, where VC activity was at its peak in German VC history.
Figure 5 share of VC investments of these sectors and indicates that there is a significant drop in share of VC investments in E-commerce sector over past few years and in H1 2022, this sector has received no significant investments.
Figure 6 summarize the overall German startups landscape for the share of top ten subsectors over last five years.
Figure 7 and Figure 8 show the geographical split of these leading 10 subsectors within top seven German states with respect to total VC funding amount.
