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Startup BarometerGermanyJanuary 2022

Design of the studyDr. Thomas PrüverHead EY Startup, GSAErnst & Young se 14010117 BerlinTel: 49 30 25471 21325thomas.pruever@de.ey.comThe EY Startup Barometer Germanyhas been published since 2014,semi-annually since 2015.Sources: Press releases of startupsor investors, press coverage,CrunchbaseNumber of startups that received financing in 2021, by federalstate (not number of financing rounds)75HamburgLower Saxony &BremenNorth rgPage Anhalt32SaxonyThuringia69Startup Barometer Germany205Bavaria

German startups received more than EUR 17 billion in venture capital in 2021 - totalvolume has more than tripled - number of deals also at record levelStartup financing in GermanyValuein EUR millionNumber 229% 56%Number and value of financing rounds inGermany17.3601.160Across Germany, the number of financing roundsin 2021 rose by 417 deals, or 56 percent, to atotal of 1,160 deals, compared with the prioryear peak. For the first time, the mark of 1,000deals per year was exceeded.The total value of these investments literallyexploded: Compared with the prior year, the totalvolume more than tripled to a goodEUR 17.4 billion.7047436214855076.2284195.272Thus, more venture capital flowed into the startupsector in Germany in 2021 than in the entirethree-year period from 2018 to 2020.4.2763.3062.2762015Page 34.5922016201720182019Startup Barometer Germany202020212015201620172018201920202021

Startup financing rounds 2021 over the course of the year: Consistently high numberof deals - December with second-highest deal volumeNumber and value of financing rounds inGermany over the course of 20212.61312011811093A clear positive trend can be seen in terms ofmonthly volumes: In the first quarter, thecumulative deal volume amounted to aroundEUR 2.5 billion, while in the fourth quarter itreached EUR 6.3 billion.929090851.7131.590721.3691.235980In each of the last four months of the year,financing volumes beyond the one-billion-eurothreshold were realized.823784520Startup Barometer GermanyDec '21Nov '21Oct '21Sep '21Aug '21Jul '21May '21Apr '21Mar '21Feb '21Dec '21Nov '21Oct '21Sep '21Aug '21Jul '21Jun '21May '21Apr '21Mar '21Feb '21397Jan '21Page 42.0971009694Jan '21The number of deal closings in 2021 remainedfairly constant over the course of the months: In10 out of 12 months, more than 90 financingrounds were recorded in each case.3.235Jun '21Startup financing in GermanyValuein EUR millionNumber

Financing volume at a new record level of nearly EUR 10 billion in the second half of2021Number and value (in EUR million)Value (in EUR million)Number and value of financing rounds inGermany by half yearNumber9.780The number of registered deals in the evaluationperiod shows a positive trend: In the periodthrough the first half of 2018, an average of 241deals were concluded per half-year; in the periodstarting with the second half of 2018 through thesecond half of 2020, an average of 358 dealswere concluded per half-year. In 2021, more than550 financing rounds were recorded in each ofthe two half years.3.4152.2512.1122.0825885712HY 20212.4791HY 20213.0212.8132.5852HY 20173322793723633802HY 20202433421HY 20192371HY 20172482642HY 20162622HY 20181.3049721HY 20161.2241HY 20201.6912HY 2015The deal volume likewise shows a clear upwardtrend. In fact, in both halves of 2021, theyexploded in comparison to the other half-yearperiods of the evaluation period.7.5802HY 2019Startup financing in Germany 2015 to2HY 2021Page 5Startup Barometer Germany1HY 20181HY 2015157

Berlin remains the undisputed leader in terms of number of deals, ahead of Bavaria andNorth Rhine-WestphaliaStartup financing in Germany in 2021and 2020Number of financing rounds by federalstateBerlin was once again the hotspot of the Germanstartup scene in 2021: With 503 financingrounds, startups in the German capital accountedfor 43 percent of all financing rounds counted inGermany - that is more than the four followingGerman states together in the deal ranking.Bavaria follows in second place, with 228financing rounds, ahead of North RhineWestphalia, whose startups closed 101 deals.In all of the top 10 federal states, more dealswere registered in 2021 than in the prior year.503Berlin314228Bavaria176101North 444HesseLower rgOther16129628342021Page 6Startup Barometer Germany2020

Berlin also leader in deal volume: Capital city startups with 60 percent market shareStartup financing in Germany in 2021and 2020Financing amounts per federal state (inEUR million)With a market share of 26 percent, Bavaria rankssecond ahead of Baden-Württemberg and NorthRhine-Westphalia, whose startup scenes eachhave a market share of around 3 percent.3.0594.432BavariaBaden-WürttembergOnce again, Berlin startups were able to raise byfar the most capital: Three out of every five eurosinvested in startups in Germany were invested inBerlin startups in 2021.10.478BerlinNorth ny27577Hesse22043Lower 89Other55692021Page 7Startup Barometer Germany2020

Software & Analytics records by far the most financing rounds - followed byE-Commerce, Health and FinTech/InsurTechStartup financing in Germany in 2021and 2020393Software & AnalyticsNumber of financing rounds per sector inGermany232166E-Commerce98125HealthAs in the prior year, the Software & Analyticssector accounted for the largest number offinancing rounds in 2021: A total of 393 dealswere recorded here, an increase of 69 percentcompared to 2020. With SaaS, ArtificialIntelligence, Virtual Reality, Blockchain, Cloud,Cyber Security and Data Analytics, this sectorincludes startups with new technologies.E-Commerce comes in second, with 166 dealsrecorded, ahead of Health and FinTech/InsurTech.In 12 of the 15 sectors, the number of dealsincreased compared with the prior year.109121FinTech / InsurTech5476Mobility5873Hardware334041393737Media & 5Recruitment1211AdTech11141012Professional ServicesOther402021Page 8Startup Barometer Germany2020

Six sectors with billion-dollar inflows - FinTech/InsurTech and E-Commerce receive themost - Software & Analytics very close behindStartup financing in Germany in 2021and 20203.767FinTech / InsurTechFinancing amounts per sector (in EURmillion)5523.711E-Commerce9763.587Software & AnalyticsNo fewer than three sectors received funding ofmore than EUR 3.5 billion each in 2021:FinTech/InsurTech, E-Commerce and Software &Analytics. All three sectors recorded an increasein total financing volume of more than three timesthe prior-year volume.Other industries that raised more than EUR 1billion in venture capital each in 2021 areMobility, Health and Energy. All three sectorsrecorded significantly higher inflows ofinvestment capital in the past calendar year thanin dia & EntertainmentEducationRecruitmentProfessional ServicesOther103248205163991332928731748102021Page 9Startup Barometer Germany2020

Number of deals in all size classes increased significantly in 2021 with the number oflarge deals of more than EUR 100 million even quadruplingStartup financing in Germany in 2021and 2020979By size class, number of financing roundsin the specified size class, 1st half of eachyear3339737In 2021, a total of 33 large deals worth morethan EUR 100 million were counted, 25 morethan in the prior year.14In all size classes surveyed, the number of dealsincreased significantly compared to 2020.68128More than EUR 100 m810085EUR 50,1 m to EUR 100 mEUR 10,1 m to EUR 50 m679EUR 5,1 m to EUR 10 m562up to EUR 5 m2020A total of 1,160 (743) financings were counted in 2021 (2020), but financing volume data is available for only 979 (737) transactions.Page 10Startup Barometer Germany2021

Gorillas ahead of Celonis and N26 with largest financing round - 8 of the top 10 dealswith financing amounts of more than EUR 500 millionTop 10 financing rounds in Germany 2021CompanyMonthFinancing amount in EUR million *GorillasSeptemberCelonisJuneN26OctoberTrade March861830775747700646431241* Foreign currencies were translated into euros on the basis of the respective half-year average exchange ratesPage 11Federal stateStartup Barometer nBerlin

Focus on sustainability

A good EUR 3.5 billion flowed to startups with a sustainability focus in 2021 - thiscorresponds to 20 percent of the venture capital investedStartup financing in GermanyValuein EUR millionNumberNumber and value of financing rounds withand without reference to sustainability inGermanyIn both the first and second half of 2021, 82financing rounds were recorded that are relatedto sustainability. This means that in both halfyears, around one in seven financing rounds wasrelated to the cross-cutting topic of sustainability.In total, around EUR 3.5 billion was invested inGerman startups with a sustainability focus in2021, which corresponds to a share of around 20percent of the total invested sum of aroundEUR 17.4 2.603(27%)82(14%)82(14%)909(12%)1HY 20212HY 20211HY 2021Financing with a sustainability focusPage 136.671(88%)Startup Barometer Germany2HY 2021Financing without a sustainability focus

Most financing rounds with a sustainability focus in 2021 were in the E-CommercesectorStartup financing in Germany in 2021and 2020Number of financing rounds withsustainability focus per sectorin parentheses: Percentage of total number offinancing roundsIn absolute terms, most investments insustainability-related startups were counted inthe E-Commerce sector. However, the share ofsuch investments in the total number ofinvestments made in the respective segment ishighest in the energy sector. In the AgTech sector,too, more than every second startup thatreceived venture capital financing in 2021 isinvolved in sustainability topics.E-CommerceEnergy34 (92%)Software & Analytics30 (8%)Hardware18 (25%)Mobility18 (24%)AgTech10 (59%)Health3 (2%)Professional Services2 (20%)FinTech / InsurTech1 (1%)Media & Entertainment1 (3%)PropTech1 (3%)OtherPage 1445 (27%)1 (25%)Startup Barometer Germany

Nearly EUR 1.5 billion for sustainability-related startups in the E-Commerce sector EUR 1.3 billion went to energy startups with a sustainability focusStartup financing in Germany in 2021and 2020Financing amounts per sector (in EURmillion) with sustainability focusin parentheses: Percentage of total financingE-Commerce and energy startups with asustainability focus received by far the highestinvestment sums last year.E-CommerceEnergy1.301 (100%)AgTech265 (78%)Mobility191 (10%)Software & AnalyticsHardwarePropTechHealthOtherFinTech / InsurTechMedia & EntertainmentProfessional ServicesPage 151.479 (40%)141 (4%)74 (14%)38 (15%)22 (2%)1 (50%)1 (0,01%)1 (0,3%)1 (3%)Startup Barometer Germany

Focus on sectors andfederal states

Detailed analysis FinTech/InsurTech: Banking ahead of Trading and Insurance with themost investment capital - Trading with the most financing roundsFinancing in the FinTech/InsurTechsector 2021Financing amounts per sub-sector (in EURmillion)in parentheses: Number of financing roundsIn the FinTech/InsurTech sector, the sub-sectorBanking attracted most of the investment capitalwith an inflow of almost EUR 1.3 billion. The topdeal (N26) also falls within this sector.The sub-sector Trading also recorded inflows ofmore than EUR 1 billion. Most financing roundswere counted in this e RepublicMay747wefoxJune539Page 171.097 (27)Insurance767 (16)Saving264 (17)Lending213 (14)PaymentCrowdfundingFinancing amountin EUR million1.270 (22)135 (21)16 (1)Blockchain4 (1)Investment0,5 (1)Other0,5 (1)Startup Barometer Germany