MUNICH / BERLIN / LONDON (IT BOLTWISE) – The German startup scene will experience a massive wave of bankruptcies in 2025. Despite significant investments, many flagship companies from the technology, energy and mobility sectors have to file for bankruptcy. Prominent names such as Lilium and Element, which were once considered bearers of hope, are particularly affected.
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In 2025, the German startup landscape will be confronted with an unprecedented wave of bankruptcies that will not spare even the most prominent companies. Despite billions in investments in recent years, many startups in the areas of technology, energy and mobility are on the verge of extinction. The Munich air taxi developer Lilium was particularly hard hit, as it had to file for bankruptcy again after a failed rescue by a consortium of investors. This is emblematic of the disillusionment in the mobility sector, which was once considered forward-looking.
The finance and insurance sector is not spared either. The Berlin InsurTech Element, which had received 150 million euros in capital, had to file for bankruptcy due to excessive indebtedness. A similar situation happened to Düsseldorf-based LegalTech RightNow, which no longer saw a future after its funding sources disappeared. These developments highlight the challenges startups face in an increasingly difficult financing environment.
The GreenTech sector, once a beacon of hope for sustainable innovation, is also struggling with significant difficulties. Battery cell company CustomCells, backed by investors including Porsche Ventures, ran into trouble after its main customer Lilium went bankrupt. The Berlin hydrogen startup HPS also filed for bankruptcy, despite significant financing. These developments show how closely the fates of startups are linked and how quickly market conditions can change.
In the mobility sector, Evum Motors, which developed electric commercial vehicles, was hit in 2025. High production costs and weak sales markets led to bankruptcy. The Berlin charging startup Jucr was also unable to assert itself on the market despite significant financing. In addition to tech and energy companies, social startups such as the care startup Kenbi also had to give up. These developments make it clear that even innovative business models are not immune to the challenges of raising capital.
The current wave of bankruptcies shows that German startups are under massive pressure. Rising interest rates, cautious investors and high costs make raising capital significantly more difficult. Many founders are currently experiencing a phase of consolidation in which only those who quickly become profitable or find strong partners survive. These developments raise the question of how the German startup landscape will develop in the coming years and what strategies are necessary to be successful in the long term.
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