Berlin Dominates Germany's Fintech Scene with 189 Companies
Fintech in Berlin - © istockphoto.com
Berlin has cemented its position as Germany's leading fintech hub, hosting more startups in this sector than Munich, Frankfurt, Hamburg, and Cologne combined, according to a new study from the Investment Bank Berlin (IBB).
With 189 active fintech companies, Berlin far outpaces its closest competitors Munich (62) and Frankfurt (52). The city attracted approximately €535 million in venture capital across 64 funding rounds in 2024, making it the most attractive investment location for financial technology in Germany.
The study reveals that enterprise software has emerged as the dominant segment within Berlin's fintech landscape, representing 16.9% of companies, up significantly from just 5% in 2023. This growth reflects increasing regulatory complexity and the growing demand for digital financial solutions.
"Frankfurt may be the capital of traditional banking, but when it comes to the future, Berlin is the center of the German fintech scene," said Franziska Giffey, Senator for Economy, Energy and Business.
Berlin's fintech ecosystem is particularly strong in scaling companies. The city is home to three-quarters of Germany's 32 scale-ups (companies valued over €100 million), with eight Berlin-based firms having raised more than €100 million each in venture capital.
Despite the favorable environment, challenges remain. The IBB economists identified structural funding gaps in the early pre-seed phase and insufficient financing volumes for scale-ups to ensure international competitiveness.
To address these challenges and further strengthen Berlin's position, initiatives like the House of Finance & Tech (HoFT) have been established to foster collaboration between startups, established companies, and policymakers.
Dr. Sebastian Schäfer, Managing Director of HoFT.Berlin, emphasized: "Berlin is not only Germany's leading fintech location but also a driver for the next generation of scalable financial technologies."
Find out more about fintech in Berlin in our special feature.
