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Frankfurt / Main (dpa / lhe) - Startups from Hesse felt the corona crisis last year.
Investors put significantly less money into the young companies, shows a study by the consulting firm EY published on Wednesday.
Accordingly, the financing volume fell from 73 million euros in 2019 to 43 million euros - a decrease of almost 42 percent.
The number of financing rounds also fell sharply from 36 in the previous year to 23.
The development of the start-ups from Hessen was therefore worse than the national trend.
Across Germany, the financing volume fell by 15 percent.
Thanks to many small deals, the number of financing rounds rose by 6 percent to the record level of 743. Many young companies had struggled with major problems, but the big "start-up dying" feared by many did not materialize.
At the top was again Berlin, where start-ups collected almost 3.1 billion euros in 2020.
Start-ups are dependent on money from investors because they are usually not yet making a profit.
Funds and large companies invest capital in promising companies in the hope that their business ideas will prevail and bring them ample profits.
Start-ups are seen as innovation drivers for the economy.
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Hessian start-ups are likely to have suffered above all from the fact that investments in young financial companies collapsed nationwide.
The Frankfurt banking center can score with these “fintechs”, even though the biggest deals in 2020, according to EY, all came from companies from Berlin: the banks N26 and Solarisbank as well as the broker Trade Republic.
Press EY