Germany reaches record 39 unicorns driven by AI and defense

Germany has reached a record level of 39 “unicorns”—startups valued at over €1 billion—according to the annual German Startup Monitor report. By the end of September 2026, approximately €8 billion in venture capital had flowed into the startup sector, surpassing the total investment from the entire previous year.

The growth is being driven significantly by the artificial intelligence boom and increased investment in the defense industry. The report notes that 53% of surveyed startups now consider AI central to their products, an increase from 39% in 2024. New unicorns joining established names like Trade Republic, N26, and Personio include Osapiens, Neura Robotics, and Stark Defense.

While the sector shows strong technological foundations, the report also highlights a growing weakness: capital is increasingly concentrating among a small number of top-tier companies.