Welcome to our September 2024 wrap-up of the most significant startup and tech news from Germany, Austria, and Switzerland. This month brought substantial developments that are reshaping the startup landscape in the DACH region.
Intel Halts €30B Chip Factory in Magdeburg
Intel has put its €30 billion chip factory project in Magdeburg, Germany, on hold for at least two years. Citing cost-cutting measures and ongoing financial struggles, the tech giant has delayed construction despite a €10 billion investment pledge from the German government. This setback risks the expiration of building permits and raises concerns about the future of one of Europe's most significant tech investments.
Northvolt Faces Financial Challenges
Northvolt, Europe's leading battery manufacturer, is grappling with financial difficulties, factory closures, and layoffs. Linked to troubles with key automotive partners like Volkswagen, the company's ambitious expansion plans in Germany, Sweden, and Canada are now in jeopardy. As Northvolt seeks additional funding, its role in Europe's green energy landscape remains uncertain.
Germany's WIN Initiative Aims to Revitalize Startups
Germany launched its WIN Initiative, aiming to mobilize €12 billion in investments by 2030 to revitalize its startup ecosystem. Supported by Deutsche Bank, Allianz, and KfW, the initiative seeks to improve access to growth capital, streamline regulations, and encourage private investments. The goal is to position Germany as a leading hub for innovation and venture capital.
Magic AI Secures $320M Funding Led by Eric Schmidt
Vienna-based AI startup Magic has secured a massive $320 million investment, led by former Google CEO Eric Schmidt. This funding propels Magic into potential unicorn status with an estimated valuation of $1.5 billion. Founded by Austrians Eric Steinberger and Sebastian De Ro, Magic focuses on AI-powered developer assistance software, aiming to revolutionize coding with human-like interaction capabilities.
Flink Raises $150M to Expand in Germany and the Netherlands
Berlin-based quick-commerce startup Flink has raised $150 million in a new funding round. Backed by investors like BOND, Mubadala, and REWE, Flink plans to use the funds to bolster its market presence and expand operations in Germany and the Netherlands. Despite previous valuations nearing $5 billion, Flink's current valuation sits just below $1 billion, reflecting volatility in the quick-commerce sector.
Swiss Startup DePoly Tops 2024 Swiss Startup Awards
Swiss startup DePoly topped the 2024 Top 100 Swiss Startup Awards, showcasing continued innovation in the region. Leading the charge in plastic recycling with groundbreaking technology, DePoly reflects the dynamic and evolving startup landscape in Switzerland.
Other Notable News
M&A Market Trends and European Startups
According to GP Bullhound’s Simon Miremadi, the M&A market is expected to see growth in HR tech consolidation and industrial software. Private equity firms are increasingly interested in VC portfolios as VCs chase liquidity. In Europe, Bulgaria’s Ekaterina Zaharieva is set to become the EU's first-ever commissioner for startups, signaling a bold move to place innovation at the heart of the EU economy.
Austria's First Hydrogen Valley
Austria plans to build Europe's first Hydrogen Valley with a €578 million investment. Spanning 17 projects, it aims to produce over 10,000 tons of green hydrogen annually by 2030, boosting industrial decarbonization and positioning Austria as a leader in sustainable energy solutions.
Berlin Aims to Revive Startup Scene
Berlin's Mayor Kai Wegner aims to revive the city’s startup scene, targeting a top-three spot in Europe. With rising costs and fewer spaces, Berlin focuses on improving conditions to attract and retain startups, bolstering its position as a significant startup hub.
VC News: Major Fundraisings
Several venture capital firms announced significant fundraisings:
Insight Partners nears closing on a $10 billion fund.
Atomico raises its largest fund ever at €1.12 billion.
Headline secures an $865 million growth fund, boosting focus on Europe.
Swiss VC Redalpine launches its largest fund yet, raising $200 million.
Greentech News
Zolar shifts focus to B2B, exiting its original B2C solar installation business.
Enpal's revenue soars 118% to €905 million in 2023, despite challenges in the solar market.
Qwello secures €65 million funding to expand its EV charging network across Europe.
Fintech News
SumUp hits €1 billion revenue, but questions arise about its €8 billion valuation.
N26, Trade Republic, and Bitpanda are back on the growth track, showing renewed momentum.
Getsafe's acquisition of Friday fell through due to valuation disagreements.
General News
Germany's Startup Association unveils its "Innovationsagenda 2030" to strengthen innovation and secure future prosperity.
Dirk Hoke, CEO of Volocopter, will leave for Voith by April 2025.
Aleph Alpha pivots from the AI race to focus on corporate and government AI solutions.
Companies Facing Challenges
Several companies have faced insolvency:
Ride Capital, backed by Verena Pausder and Mario Götze, files for insolvency.
ME Energy, known for its off-grid fast chargers, has filed for insolvency.
Strohboid, a Graz-based luxury tent startup, files for insolvency due to recession impacts.
Successful Fundraising and Expansions
Despite challenges, many startups secured significant funding:
Neo Medical raises $68 million to boost U.S. expansion of its AI-powered spinal surgery platform.
Formo raises $61 million to launch the world's first cheese made from Koji fungus proteins, now available in German grocery stores.
Reverion secures €56 million to supercharge renewable power plants and lead a carbon-negative revolution.
Call to Action
Stay ahead of the curve with Startuprad.io™. Subscribe to our podcast for the latest startup news from Germany, Austria, and Switzerland.
Subscribe: https://linktr.ee/startupradio
We value your feedback. Please take a moment to share your thoughts with us.
Give us feedback: https://forms.gle/SrcGUpycu26fvMFE9
Work with us: https://www.startuprad.io/become-a-partner
Original Blog Post: https://www.startuprad.io/blog
Special Offer:
We have a special deal with ModernIQs.com, where Startuprad.io listeners can create two free SEO-optimized blog posts per month in less than a minute. You will get the two free posts for your blog each month only when you use the link below. This is exclusive for our audience.
Get your free blog posts: https://moderniqs.com/create-an-account/?res_aff=startupradio
Note: You need to subscribe while on the link; otherwise, you won't get the two pieces.
Watch or Listen to The News Here:
The Video Podcast Will Go Live on Monday, September 2nd, 2024
The video is available up to 24 hours before to our channel members.
The Audio Podcast Will Go Live on Monday, September 2nd, 2024
You can subscribe to our podcasts here. Find our podcast on your favorite podcasting app or platform. Here are some of the links to subscribe.
All rights reserved - Startuprad.io™
Comments