KfW vs Trade Republic

German VC Market Sees Strongest Quarter Since 2021

According to KfW Research, German startups received over €4.5 billion in venture capital in Q3 2026, the highest quarterly volume since Q4 2021. This represents a near quadrupling compared to Q3 2025. The surge is driven by a few mega-rounds, with six deals exceeding €100 million each accounting for over €3.5 billion, and a boom in AI investments, which attracted €3.1 billion (69% of the total). However, the number of deals (≥€1M) fell to 89 in Q3, one of the lowest in recent years, indicating a concentration of capital in fewer, high-performing startups. In the first nine months, €9.5 billion was invested, surpassing the totals for 2023, 2024, and 2025. Germany now counts 43 unicorns. KfW expects continued concentration on large financing rounds.

• German startups received over €4.5 billion in VC funding in Q3 2026, the highest quarterly amount since Q4 2021.
• AI startups attracted €3.1 billion (69% of total VC) across 61 rounds in Q3 2026.
• Six mega-rounds (>€100M each) accounted for over €3.5 billion, representing more than 75% of the quarterly volume.

KfW Newsroom: Neue Pressemitteilungen und Video-Update

Neue Pressemitteilungen: 'Effizienzhaus 55-Förderung zeigt Wirkung: 50.000 Wohneinheiten gefördert' (30.09.2026), 'KfW-ifo-Mittelstandsbarometer: September 2026' (29.09.2026), 'Externe Prüfung bescheinigt DEG sehr gutes Impact Management' (29.09.2026). Zudem neues Video 'Die Zukunft ist unbemannt' über das Programm 'Scale-up Direct' des Deutschlandfonds.

Everphone secures €15 million refinancing for device leasing

Berlin-based Device-as-a-Service (DaaS) provider Everphone secured €15 million in refinancing from Commerzbank and KfW to finance new workplace devices for corporate clients under long-term leases. The financing follows a €270 million Series D in 2024 and is part of a strategy to improve unit economics by reducing financing costs. The new structure lowers the interest margin by 20 basis points, enabling larger purchase volumes at lower unit costs. Everphone serves over 1,000 organizations, including DAX-listed companies, and offers managed services like MDM and mobile threat defense. This deal highlights the growing trend of device-as-a-service models in Europe, with similar financings for Raylo and equipal in 2026.

• Everphone secured €15 million in refinancing from Commerzbank and KfW.
• The financing is intended to finance new workplace devices for corporate customers under long-term leases.
• The new structure reduces the interest margin by 20 basis points compared to previous financing.

Bafin Tightens Control Over Raisin

The German financial regulator Bafin has reclassified the Berlin-based fintech Raisin as a financial holding company, extending stricter oversight and higher capital requirements that previously applied only to its banking subsidiary. This move ends a prolonged resistance by Raisin's management, led by co-founder and CEO Tamaz Georgadze, against stronger regulatory oversight. The reclassification requires Georgadze to recalculate the business case for Raisin, which was last valued at approximately €3 billion. This change aligns Raisin with other major European fintechs like Trade Republic and Klarna, which have embraced banking status. The news was reported exclusively by manager-magazin.

• Bafin classifies Raisin as a financial holding company, extending stricter oversight beyond its banking subsidiary.
• The reclassification was made against the resistance of Raisin's management, including CEO Tamaz Georgadze.
• Raisin was last valued at approximately €3 billion.

Trade Republic Found Own Life Insurer for Retirement

Trade Republic, the Berlin-based neobroker, has established its own life insurer, Justinian Versicherungs AG, in Vaduz, Liechtenstein, after receiving a license from the local regulator FMA. The license covers traditional and unit-linked life insurance. This strategic move enables Trade Republic to offer a guaranteed version of the upcoming state-subsidized retirement savings account (Altersvorsorgedepot) in Germany, which will replace the Riester pension from 2027. The guaranteed version may incur a fee, unlike previously announced free variants. This expansion positions Trade Republic against traditional insurers like Allianz and Ergo, targeting security-conscious savers, while rival Scalable Capital avoids guarantees. Trade Republic reported €754 million in revenue for its 2024/25 fiscal year and a valuation of €12.5 billion, serving over 10 million customers.

• Trade Republic founded Justinian Versicherungs AG in Vaduz, Liechtenstein, and received a life insurance license from the FMA, covering traditional and unit-linked life insurance.
• The insurer enables Trade Republic to potentially offer a guaranteed version of the Altersvorsorgedepot, with returns of at least 80-100% of contributions, though it may carry a fee.
• The Altersvorsorgedepot is scheduled to launch in early 2027 as the successor to the Riester pension.

Project A's Heinemann: European VCs are suppliers to top US investors

In the 'Royal GS' podcast, Project A founding partner Florian Heinemann discussed European early-stage VC strategy. Project A, a Berlin-based early-stage investor, focuses on pre-seed and seed rounds, sometimes Series A, with a €325 million fund. Heinemann emphasized that European early-stage VCs act as 'suppliers' for top US investors, preparing startups for later US-led funding rounds. He advised founders to limit dilution to 20% per round and to maintain market-standard valuations. He cited Trade Republic as a success, noting Project A's ~9% stake cashed out during a secondary round at a €12 billion valuation. He criticized overvalued rounds by late-stage startups like ElevenLabs and Lovable, questioning the defensibility of such high valuations and noting that such rounds often facilitate secondaries for early investors.

• Project A manages a €325 million fund for early-stage investments.
• Florian Heinemann advises founders to limit dilution to max 20% per round.
• Project A cashed out part of its ~9% stake in Trade Republic during a secondary round at a €12 billion valuation.