Deutsche Bank sees European scale-ups gaining momentum as venture capital rises 44% in Germany
DB•Deutsche Bank said Europe has advantages in applying AI to industrial sectors but scale-ups face funding gaps and fragmented rules. Venture capital investment in Germany rose 44% in the first half of 2026.
1. Funding and scaling challenges
Deutsche Bank analysis cited Europe’s engineering depth, research capacity and industrial scale as advantages in applying AI to established sectors. It said scale-ups face a funding gap as their capital needs rise after the start-up phase, limiting the pace of global expansion.
2. Capital markets and regulation
The analysis called deeper, more integrated capital markets critical and described a capital markets union as key to unlocking cross-border investment. It cited fragmented rules across EU states as a major drag on scaling; IMF estimates equate internal goods barriers to a 45% tariff. Venture capital investment in Germany rose 44% in the first half of 2026, supported by several large scale-up funding rounds.
