Germany sees record number of new start-ups in first half of 2026

Germany recorded a record number of new start-ups in the first half of the year, with artificial intelligence helping entrepreneurs launch businesses more quickly and with less capital, according to a study by the German Startups Association.

A total of 3,053 start-ups were founded between January and June, up 52% from the second half of 2025 and exceeding the total number created during all of 2024, the study showed.

"Germany has never seen this level of entrepreneurial momentum before," Startups Association Chairwoman Verena Pausder said.

She said AI had become the main driver of new business creation by significantly lowering the barriers to founding companies.

More than one-third of the new start-ups, or 1,038 companies, had a clear focus on AI, according to the study, which was based on commercial register data analyzed by research firm Startupdetector. Software remained the largest sector with 844 new companies.

The Startups Association said an upturn that began in mid-2025 was gathering pace, adding that Germany's economic slowdown had also encouraged entrepreneurship as established companies became more cautious about hiring.

Start-up formation increased across all German states. Berlin remained the country's leading start-up hub with 429 new companies, although its growth lagged that of other regions, and Hamburg overtook Munich for the first time in years.

Germany has also added six new unicorns - start-ups valued at more than $1 billion - since the start of the year, bringing the total to 36, the association said. 

However, it said Europe still lagged far behind the United States, where more than 900 start-ups have achieved unicorn status, largely because of stronger venture capital markets.