berlin investment in german startups slumped by 43 per cent in 2022 to nearly 99 billion euros 106 billion after a record year in 2021 consulting firm ernst and young ey germany saidthe number of large deals of more than 50 million euros also dropped by around half last year xinhua news agency reportedwith the cost of capital rising and valuations falling investors are paying more attention to profitability than to longterm growth promises said thomas pruever partner at ey on wednesdayyoung companies are being challenged to adapt to this and to show a clear path to profitabilitysoftware and analytics companies in germany collected by far the most venture capital in 2022 with 32 billion euros according to eythe berlinbased insurtech company wefox and the software startup celonis from bavaria achieved the highest financing round with 399 million euros eacha survey among young companies by the german startup association in september 2022 showed that uncertainty among startups has increased significantly as a result of economic and political turmoil however the situation was still much more positive than the covid19year 2020 1 euro 107 us dollars