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German startups are making a comeback
German PE funds overtake 2023, a future startup unicorn, and more...
SearchVentures
September 18, 2024
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Private equity is betting on startups
Private equity funds in Germany have raised €4.9 billion in the first half of 2024, already beating the total of €4.5 billion raised in 2023.
What’s driving this shift?
This Week’s Trends
German PE fundraising on the rise
The startup with car subscriptions
€1 billion raised in a week and more
Read Time 4 minutes
The Startup Trend
Increased PE fundraising
Private equity funds in Germany have already raised more capital for startups this year than in 2023 with €4.9 billion raised in 2024. This signals the country’s rebound from being the worst-performing major economy last year.
> PE funds are strategically shifting their focus to capitalize on undervalued assets and long-term growth during Germany’s economic recovery.
> Government support and initiatives in order to recover the economy, have created new opportunities for investors.
💡 With more capital, PE firms are turning to German startups for potentially high returns.
Startup feature
A monthly subscription for your car
Finn, a startup based out of Munich, has raised $110 million for its flexible car subscription platform. With a monthly subscription covering insurance, maintenance, and delivery, Finn has attracted over 25,000 subscribers across Germany and the U.S.
Growth and Expansion
Finn’s unique car subscription model has resonated with customers looking for flexibility without the long-term commitment of car ownership.
“People don’t want the burden of owning a car, but they do want the convenience and freedom that cars provide.”
After early success in Germany, Finn recognized the U.S. as a strategic market ideally suited for its digital-first, hassle-free model. By launching in 11 states across the US in 2022, Finn's growth surpassed its initial German launch within just six months.
“Capturing the U.S. market quickly has allowed us access a much larger market of consumers, as well as US investors.”
Raising $110 million for the idea
Earlier this year Finn secured $110 million in their Series C funding round a mix of both VC and PE investors, valuing the startup at $658 million. The new capital is focused on scaling Finn’s presence in the U.S. and expanding its electric vehicle (EV) fleet.
With plans to have over 80% of the fleet be electric cars by 2028, the founders and investors believe electric cars should be as easy to swap out every year as an iPhone.
“Our carefree subscription model is the perfect accelerant for the shift to electric cars - especially since EVs will be updating rapidly.”
One of Finn's significant growth drivers has been its B2B subscription service, which allows businesses to access vehicles on six or twelve-month contracts. By offering a flexible, scalable solution for fleet management, Finn’s B2B users now account for half of the startup’s $180 million in annual recurring revenue.
While the startup is not yet profitable, its strong ARR and continued investment in growth suggest that profitability is within reach.
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Investors & VCs
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Cheers,
Odin Lund & Hari Mohandas
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