Latest / Startup & Tech News from Germany, Austria, and Switzerland by Startuprad.io™ / German Startup News – Summer 2025: n8n's $2.3B, N26's Shakeup & a Swiss Hydrogen Bet
Transcript
- WEBVTT 00:00:00.000 --> 00:00:19.920 Music. 00:00:20.150 --> 00:00:22.530 Hello and welcome. I would like to say it's a sunny welcome, 00:00:22.670 --> 00:00:25.330 but unfortunately it's rather gray here in New York. 00:00:25.730 --> 00:00:29.890 We welcome you to our regular startup news from the startup and tech entrepreneurship 00:00:29.890 --> 00:00:31.950 scenes in Germany, Austria, and Switzerland. 00:00:32.290 --> 00:00:36.870 We are back from our summer break. I only cling on to this like floral motive 00:00:36.870 --> 00:00:37.970 short sleeve I'm wearing. 00:00:38.630 --> 00:00:42.870 And we bring you a massive news episode today. In fact, it's so long we had 00:00:42.870 --> 00:00:44.350 to cut it into two episodes. 00:00:44.710 --> 00:00:47.930 So like double the fun our startup news 00:00:47.930 --> 00:00:51.030 is recorded with me in new york city 00:00:51.030 --> 00:00:54.790 joe is joining from frankfurt hey from 00:00:54.790 --> 00:00:57.690 nightly frankfurt hey guys how you doing and now 00:00:57.690 --> 00:01:02.090 i started to mention myself first which if you want to get into german idioms 00:01:02.090 --> 00:01:09.050 in german you usually learn the donkey always mentions himself first i learned 00:01:09.050 --> 00:01:15.850 that when i grew up the esel nennt sich immer zuerst today's news cut is This is August 19th. 00:01:15.930 --> 00:01:18.690 As always, all news not included will be in our next shows. 00:01:18.910 --> 00:01:25.190 Next news wrap up to be published October 2nd, wrapping up September and the remaining August then. 00:01:25.410 --> 00:01:29.450 We need to cut our news seriously today so you can have a brief news overview. 00:01:29.730 --> 00:01:37.890 We will have other news pieces in our blog posts on startup.io slash blog. 00:01:38.856 --> 00:01:41.536 Those are the ones that we simply cannot cover here. Otherwise, 00:01:41.696 --> 00:01:43.616 the news would stretch far too long. 00:01:43.876 --> 00:01:49.436 To give you a bit of background, this time we went through more than 350 news pieces for you. 00:01:49.596 --> 00:01:53.876 Therefore, we decided for the first time in the history of StartupRate.io that 00:01:53.876 --> 00:01:57.956 we will split this news recording into two pieces to keep them short and crisp. 00:01:58.136 --> 00:02:01.176 Happy Labor Day to you if you are celebrating. 00:02:02.496 --> 00:02:04.416 And entrepreneurs, since they 00:02:04.416 --> 00:02:08.016 are working so much, I guess, have a special relationship to Labor Day. 00:02:08.856 --> 00:02:13.276 But before I talk myself even more into a corner, I'm going to hand it over 00:02:13.276 --> 00:02:16.236 to you, Joe, to kick us off with the highlights. 00:02:17.056 --> 00:02:20.376 Yes. Thanks, Chris. I always appreciate your energy here. 00:02:21.236 --> 00:02:27.816 The highlights. By the way, I love Labor Day because it usually frequently coincides with my birthday. 00:02:27.816 --> 00:02:32.836 Our highlights, startup funding momentum across Europe and the DACH region, 00:02:33.256 --> 00:02:38.816 accelerated in August with AI, climate tech and fintech taking center stage. 00:02:39.376 --> 00:02:45.456 Berlin's AI ecosystem made global headlines as one stealth unicorn skyrocketed 00:02:45.456 --> 00:02:51.896 from $350 million to a $2.3 billion valuation in just four months, 00:02:51.896 --> 00:02:56.816 underlining the region's dominance in enterprise automation and SaaS-driven AI. 00:02:57.296 --> 00:03:02.936 Meanwhile, the macro backdrop remains tense, with Germany's GDP contracting 00:03:02.936 --> 00:03:04.776 sparking recession fears. 00:03:05.056 --> 00:03:10.356 But venture capital continues to pour into deep tech and energy innovation as 00:03:10.356 --> 00:03:13.796 hedge bets against cyclical slowdown. 00:03:14.136 --> 00:03:17.176 Major deals shaped this month's narrative. 00:03:17.176 --> 00:03:23.676 Climeworks raised $162 million to advance its CO2 capture technology, 00:03:23.996 --> 00:03:31.376 while the Stuttgart-based Makersite secured €60 million Series B to scale its 00:03:31.376 --> 00:03:35.696 sustainable supply chain software Q&A. 00:03:35.850 --> 00:03:42.350 Added 62 million Series A, the 60 million Euros Series A to push quantum inspired 00:03:42.350 --> 00:03:51.650 climate solutions and Munich's TANSO closed 12 million Euros Series A underscoring 00:03:51.650 --> 00:03:54.630 climate tech as a long-term growth pillar. 00:03:55.070 --> 00:04:01.190 On the fintech front, N26 faced regulatory heat and leadership shakeups, 00:04:01.370 --> 00:04:07.590 even as Scanbot SDK exited via acquisition and bling absorbed FinStep, 00:04:07.930 --> 00:04:15.770 highlighting both consolidation and compliance challenges in Europe's neobanking sector. 00:04:16.150 --> 00:04:21.250 For founders and VCs, these developments signal a bifurcated market. 00:04:21.530 --> 00:04:27.670 Late-stage climate and AI startups are attracting mega rounds and unicorn valuations, 00:04:27.830 --> 00:04:33.590 while fintech and mobility players like Lilium navigate restructuring and defense 00:04:33.590 --> 00:04:36.050 pivots to secure survival. 00:04:36.330 --> 00:04:43.430 This month, wave of scale-ups and exit reinforces the thesis that Europe's competitive 00:04:43.430 --> 00:04:45.650 edge lies in climate innovation, 00:04:46.110 --> 00:04:53.690 quantum technologies, and enterprise AI sectors now too big for global investors to ignore. 00:04:54.710 --> 00:04:58.470 Let's Talk Startups. There's a link. You can give us feedback. 00:04:58.850 --> 00:05:04.810 As we said, the first piece of this news will go live September 1st, 2025. 00:05:05.170 --> 00:05:06.950 And I'm just turning around and 00:05:06.950 --> 00:05:13.350 checking. And number two, part two will go live on September 4th, 2025. 00:05:14.850 --> 00:05:17.970 Chris, you look pretty sharp in your shirt. 00:05:18.070 --> 00:05:22.010 And by the way, without discussing it upfront, we both are wearing shirts. 00:05:22.010 --> 00:05:27.730 Chris, you want to take over the top news, especially if you're just so nice. For once, we clean up. 00:05:28.910 --> 00:05:33.770 I'm going to kick things off with Berlin's N8N. 00:05:34.630 --> 00:05:40.510 It's a workflow automation startup that has rocketed to a $2.3 billion pre-money 00:05:40.510 --> 00:05:47.230 valuation in August, like a week ago, after Excel led a mega round with Meritech 00:05:47.230 --> 00:05:48.590 Capital expected to join, 00:05:49.070 --> 00:05:52.530 marking one of Europe's biggest AI-driven automation deals this year. 00:05:52.670 --> 00:05:59.470 The company's value has jumped from just 350 million dollars in March 24. 00:05:59.890 --> 00:06:01.930 So within one and a half years. 00:06:03.946 --> 00:06:08.546 We have seen a more than six times increase there on the back of surging demand 00:06:08.546 --> 00:06:12.346 for AI agents and enterprise grade workflow automation. 00:06:12.906 --> 00:06:18.866 They say they have an annual recurring revenue of more than $40 million and 00:06:18.866 --> 00:06:20.946 a 200,000 member community. 00:06:22.106 --> 00:06:30.066 And N8N has become a leading open source alternative to Zapier and Make.com. 00:06:32.006 --> 00:06:40.266 Lilium brings in Pluta as insolvency advisor amid their defense pivot. 00:06:40.646 --> 00:06:44.806 So Lilium, we talked about them quite often in our podcast already, 00:06:45.326 --> 00:06:50.186 based in Munich as an air taxi startup that faces mounting insolvency pressures, 00:06:50.186 --> 00:06:53.066 as Süddeutsche Zeitung has reported, for example. 00:06:53.706 --> 00:06:55.806 Several times last week. 00:06:55.806 --> 00:07:04.046 And restructuring advisor AAMG Pluta has been now called in to guide the company through its crisis. 00:07:04.266 --> 00:07:08.726 That follows Handelsblad's revelations that Lilium is weighing a defense sector 00:07:08.726 --> 00:07:13.606 pivot to generate near-term revenues with the defense sector right now being 00:07:13.606 --> 00:07:18.926 quite booming in European countries because they're investing more due to the 00:07:18.926 --> 00:07:24.086 Ukraine war and the US being a less reliable partner than in the past. 00:07:24.086 --> 00:07:33.346 Business Insider's note on fresh investor interest is reviving a 20 million euro financing deal. 00:07:33.806 --> 00:07:42.666 Despite pioneering Europe's EVT oil ambitions, Lilium has endured cash burn, 00:07:42.826 --> 00:07:45.546 layoffs and delayed certification milestones. 00:07:46.086 --> 00:07:51.486 So it's still relatively uncertain what their commercial future will bring. 00:07:51.486 --> 00:07:56.186 And now thinking about dual-use applications in defense and emergency services, 00:07:56.346 --> 00:08:02.246 Lilium is pivoting, kind of hedging the risk. 00:08:02.446 --> 00:08:05.686 And they are joining a wider European trend of aerospace startups, 00:08:05.866 --> 00:08:09.986 turning to government-based contracts to bridge long funding cycles. 00:08:12.446 --> 00:08:16.286 N26, another company we've been talking about a lot here, 00:08:16.966 --> 00:08:23.986 a Neobank based in Berlin, is facing a severe governance crisis since probably 00:08:23.986 --> 00:08:29.246 the most severe one since its founding as their co-founder and CEO Valentin 00:08:29.246 --> 00:08:33.866 Steilf stepped down a couple of days ago, August 15th, earlier than planned, 00:08:34.851 --> 00:08:41.431 reported, for example, by Golem and FAZ, the exit follows BaFin's special audit, 00:08:41.691 --> 00:08:49.971 BaFin being the regulatory committee institution and financial supervisor. 00:08:51.491 --> 00:08:56.731 So they audited N26 and revealed serious deficiencies, gravierende menge in 00:08:56.731 --> 00:09:03.551 fraud prevention and compliance, raising investor impatience and regulatory pressure. 00:09:03.551 --> 00:09:09.551 The move also coincides with leadership reshuffles, including a new risk officer, 00:09:09.711 --> 00:09:14.571 chief risk officer from Santander, replacing N26 outgoing CRO. 00:09:15.551 --> 00:09:20.171 And together, these developments mark a deep structural shakeup at a company 00:09:20.171 --> 00:09:21.771 where we've had a lot of shakeups. 00:09:21.911 --> 00:09:28.291 I mean, we have been talking about them quite often now and watching them from 00:09:28.291 --> 00:09:33.211 being a company where a lot of people were expecting great things from. 00:09:33.551 --> 00:09:41.811 To something that right now feels as if every month we come up with a new talk 00:09:41.811 --> 00:09:43.851 about, okay, this is their next issue. 00:09:44.371 --> 00:09:51.691 And the sad thing is that, for example, companies like Revolut show that the new bank model can work. 00:09:51.831 --> 00:09:57.231 So it's really sad that this, at least right now, is not working out as it could be. 00:09:58.951 --> 00:10:04.851 Moving on to Switzerland, where we see the cleantech scale-up OrangeBet having 00:10:04.851 --> 00:10:12.911 secured a landmark 825 million euros allocation from the European Hydrogen Bank, according to MoneyCab. 00:10:12.911 --> 00:10:18.251 The funding will be used to expand industrial-scale hydrogen production and 00:10:18.251 --> 00:10:20.151 infrastructure projects across Europe. 00:10:20.871 --> 00:10:28.191 So OrangeBet is going to become one of the largest single hydrogen allocations 00:10:28.191 --> 00:10:32.811 tied to a DACH-based company. 00:10:33.271 --> 00:10:38.011 OrangeBet's Wynn underscores Brussels' determination to accelerate green hydrogen 00:10:38.011 --> 00:10:42.531 commercialization as part of the EU's decarbonization strategy. 00:10:42.531 --> 00:10:46.911 And it also positions the Swiss player alongside other continental leaders, 00:10:47.071 --> 00:10:49.651 such as Sunfire from Germany or H2 Mobility. 00:10:52.751 --> 00:10:57.731 OrangeBat is targeting both industrial energy users and cross-border hydrogen 00:10:57.731 --> 00:11:04.551 corridors and aims to become a central enabler of Europe's clean tech transitions. 00:11:07.051 --> 00:11:12.051 And that's it with the really big top news section. 00:11:12.731 --> 00:11:16.491 And that leaves us with our first little ad break. 00:11:22.464 --> 00:11:30.564 Taking over after the ad break from Chris, we don't put anything here in housekeeping 00:11:30.564 --> 00:11:36.204 and time to brag this month, but there'll be more coming up. 00:11:36.344 --> 00:11:38.604 Talking about the ecosystem here. 00:11:39.124 --> 00:11:45.044 In Europe, the European Innovation Council selects 40 startups for new funding 00:11:45.044 --> 00:11:51.784 round reported by Silicon Canals. They selected 40 startups from across Europe 00:11:51.784 --> 00:11:53.544 for equity and grant support. 00:11:53.684 --> 00:12:01.924 The companies span biotech, AI, and sustainability, reflecting EU-level support for scaling deep tech. 00:12:02.084 --> 00:12:08.564 Several DACH startups are included, though not all names were disclosed in this article. 00:12:10.044 --> 00:12:22.624 Two companies, Quant, Q-W-A-N-T, and Ecosia launched STAN, Europe's independent search index. 00:12:22.804 --> 00:12:27.744 TechCrunch reported that French search engine Quant and German Echo Search provider 00:12:27.744 --> 00:12:30.104 Ecosia jointly launched STAN, 00:12:30.264 --> 00:12:35.264 a European search index designed as a privacy-first alternative to Google. 00:12:35.264 --> 00:12:40.904 They aim to enhance Europe's digital sovereignty and lay the groundwork for 00:12:40.904 --> 00:12:47.964 AI-native retrieval systems. The launch could reshape the European surge and add tech market. 00:12:48.484 --> 00:12:51.704 The talk going to Germany here. 00:12:51.984 --> 00:12:57.024 The IFO Business Climate Index edges higher in July 2025. 00:12:57.024 --> 00:13:04.224 On July 25th, 2025, the IFO Institute in Munich reported a modest increase in 00:13:04.224 --> 00:13:11.144 its closely watched Business Climate Index, reflecting cautious optimism in the German economy. 00:13:11.344 --> 00:13:16.984 Sentiment improved in industry and services, but remained weak in construction and retail. 00:13:18.624 --> 00:13:25.004 In other news, Dresden tops some up 2025 cost ranking for founders. 00:13:25.144 --> 00:13:28.304 Founders, Leipzig and Bremen follow. 00:13:29.144 --> 00:13:34.844 Sum ups analyzers of 71 German cities ranked Dresden number one for cost efficient 00:13:34.844 --> 00:13:41.084 funding, setting low retail rents, utilities and competitive effective corporate tax. 00:13:41.584 --> 00:13:47.604 Leipzig placed second, Bremen third, while Munich ranked last among the top 00:13:47.604 --> 00:13:49.644 20 due to high rents and utilities. 00:13:49.924 --> 00:13:54.564 But apparently you could still work as a high rent startup hub. 00:13:54.564 --> 00:13:57.924 The study weights median wages, unemployment, rents, utilities, 00:13:58.544 --> 00:14:05.724 and effective corporate tax, signaling cost advantages in East German hubs for early stage teams. 00:14:07.024 --> 00:14:13.124 KFW, Gründungsmonitor 2025, meaning the founding monitor 2025, 00:14:13.564 --> 00:14:18.064 reports stable startup activity despite economic headwinds. 00:14:18.423 --> 00:14:24.403 Munich startup summarized the KfW Krönungsmonitor 2025, showing that the number 00:14:24.403 --> 00:14:27.223 of new businesses in Germany remains robust. 00:14:27.563 --> 00:14:31.903 Early stage activity is supported by resilience in tech and digital sectors, 00:14:32.123 --> 00:14:39.243 even as macroeconomic uncertainty waits on financing, policymakers are watching 00:14:39.243 --> 00:14:42.903 indicators closely to refine support schemes. 00:14:43.823 --> 00:14:49.123 German GDP dips again. Technical recession looms in Q2 2025. 00:14:49.843 --> 00:14:53.763 Tagesschau, it's like the main news source in Germany, right? 00:14:54.143 --> 00:14:58.823 Everybody watches Tagesschau APM here in Germany. It's the law. You have to watch that. 00:14:59.643 --> 00:15:05.603 They reported that Germany's economy shrank by 0.2% in Q2 after flat Q1, 00:15:05.723 --> 00:15:07.883 meeting the definition of technical recession. 00:15:08.443 --> 00:15:15.803 Exports and industrial output weakened while private consumption stagnated despite easing inflation. 00:15:16.043 --> 00:15:20.843 The downturn adds pressure to fiscal debates and heightens importance of startup 00:15:20.843 --> 00:15:23.923 innovation-driven growth narratives in the Dach region. 00:15:24.443 --> 00:15:32.143 Berlin to set new financial rails for defense startups to speed procurement and scale. 00:15:32.143 --> 00:15:36.803 Handelsblatt report that the federal government will establish funding procurement, 00:15:37.363 --> 00:15:42.203 Weichen, meaning Rails, to help defense tech startups commercialize faster. 00:15:42.943 --> 00:15:47.183 Aligns with dual-use momentum and NATO-related demand. 00:15:47.383 --> 00:15:50.943 Dual use, didn't we just have something with Lilium like that? 00:15:51.323 --> 00:15:59.343 No new budget timelines versus our priority entry. Germany clears the path for 00:15:59.343 --> 00:16:05.723 remote-operated driving pilots, opening the door for teleoperation startups. 00:16:06.303 --> 00:16:11.623 German authorities signal the go-ahead for remote-controlled driving pilots, 00:16:11.723 --> 00:16:15.523 establishing the framework for teleoperation in logistics and mobility. 00:16:15.843 --> 00:16:19.963 The policy shift could benefit companies building tele-driving stacks, 00:16:20.183 --> 00:16:25.663 remote-op centers, and safety cases aligned with EU rules. The article does 00:16:25.663 --> 00:16:27.203 not name specific startups. 00:16:27.523 --> 00:16:31.763 And Chris, you know what's very interesting? We actually talked about it. 00:16:31.863 --> 00:16:38.843 I talked with a lawyer about it inside Germany's autonomous driving law in 2021 00:16:38.843 --> 00:16:42.583 because this was already within the frame of law. 00:16:42.743 --> 00:16:48.523 So we have been quite ahead of the curve here. But Chris, you look pretty barbarian. 00:16:48.623 --> 00:16:50.043 You want to take over Vavaria here. 00:16:50.383 --> 00:16:56.003 It's a unique thing that they are highlighted here. I mean, you're dressed in white and blue, too. 00:16:56.803 --> 00:17:01.123 But yeah, I mean, autonomous driving, this is also a story that has been with 00:17:01.123 --> 00:17:05.763 us forever. And we've been promised that we are so close to finally actually making it work. 00:17:06.303 --> 00:17:09.943 Waymo apparently works pretty well on the U.S. West Coast. But so far, 00:17:09.983 --> 00:17:16.543 I mean, I'm sure if you went back in the archives that you would be able to find. 00:17:18.972 --> 00:17:21.352 Assumptions, promises that would 00:17:21.352 --> 00:17:25.892 have said, okay, in 2025, there will be autonomous driving everywhere. 00:17:26.612 --> 00:17:31.692 And not much has happened. But we've already discussed it in 2021, 00:17:31.692 --> 00:17:34.212 so there will be one person ahead of a lot of screens. 00:17:34.532 --> 00:17:41.952 And if any autonomous driving vehicle gets into trouble, a human driver from a center takes over. 00:17:42.152 --> 00:17:47.472 That was basically the idea we discussed in 2021, and now it seems to become 00:17:47.472 --> 00:17:48.932 reality, at least in ports. 00:17:49.352 --> 00:17:53.692 There also was a huge report in Guardian based on reporting, 00:17:53.852 --> 00:17:55.692 I think even for 100th platform Germany, 00:17:56.192 --> 00:18:04.512 about how nonchalant Tesla actually deals with really deadly crashes and the 00:18:04.512 --> 00:18:08.852 car taking over when the drivers don't really want it. 00:18:08.992 --> 00:18:19.692 And then actually a lot of times the The people who are the survivors of the 00:18:19.692 --> 00:18:24.572 dead people never get answers for what actually happened in the car and why 00:18:24.572 --> 00:18:26.692 the crash happened, why it accelerated. 00:18:26.692 --> 00:18:29.892 It was a really disturbing read. Anyway. 00:18:32.192 --> 00:18:37.472 Bavaria, we established it already, white and blue, stayed in the German South, 00:18:37.712 --> 00:18:44.512 passes a landmark resolution to unlock foundation capital for startups and VC funds. 00:18:46.447 --> 00:18:52.067 The Bavarian Parliament approved a pro-startup resolution to invest in startups 00:18:52.067 --> 00:18:58.567 and VC funds, a little policy tweak that aims at attracting more endowment capital 00:18:58.567 --> 00:19:00.327 into Dachventure markets. 00:19:01.947 --> 00:19:06.747 Austria, to the south of Bavaria and to the south of Germany. 00:19:08.387 --> 00:19:13.367 There we see what they call a Gründerwelle, a founder's wave, 00:19:13.367 --> 00:19:18.727 meaning there's a clear uptick in new company formations in Austria despite 00:19:18.727 --> 00:19:23.047 the macro headwinds, a surge indicating resilient founder activity, 00:19:23.247 --> 00:19:26.767 improving access vehicles, public co-funding, 00:19:27.127 --> 00:19:28.667 corporates and regional initiatives. 00:19:29.247 --> 00:19:35.427 We have in the show notes details split for different sectors and seed series totals. 00:19:36.067 --> 00:19:41.627 Vienna-based Allocator 1 launches a fund of funds for European VC. 00:19:42.567 --> 00:19:49.647 It's a platform designed to channel institutional money into European VC funds. 00:19:49.827 --> 00:19:57.427 And the startup model aims to diversify LP risk and simplify access to venture investments. 00:19:58.347 --> 00:20:03.927 Switzerland, as we say in geography, to the left of Austria, 00:20:04.427 --> 00:20:10.647 west of Austria, has... You just said to the left of Austria, 00:20:10.767 --> 00:20:12.787 Chris. Yeah, that's what we say. 00:20:13.367 --> 00:20:18.607 Pinterest launches a new AI tech hub in Zurich in order to strengthen their 00:20:18.607 --> 00:20:25.567 DACH region footprint and also signaling a major investment in local research and development. 00:20:25.907 --> 00:20:31.287 The hub will focus on personalization, generative AI, and content safety. 00:20:32.447 --> 00:20:41.467 And this, our dear friends, is already the end of part one of our startup news. 00:20:41.627 --> 00:20:47.827 We will be back in three days for those of you who listened to us on day one. 00:20:48.247 --> 00:20:52.187 If you download us later, you can also wait three days, but you can also just 00:20:52.187 --> 00:20:55.507 go into your app and download the second part if you want to. 00:20:56.967 --> 00:21:04.067 So thanks for now. And we'll hear you soon. Talk soon. Bye, guys. Bye, 00:21:07.187 --> 00:21:07.187 guys. 00:21:07.280 --> 00:21:33.096 Music.