Xiaoguang Cai

Global law firm Freshfields has examined the development of acquisitions involving startups, and AI startups in particular, in Germany and Europe. The evaluation is based on figures from the financial data provider Pitchbook. “The figures show that even in a volatile market environment, the tech sector and growth companies in particular continue to exhibit a high level of transaction activity,” says Laura Frühauf, Counsel for Tech M&A at Freshfields. She expects this trend to continue into the new year. “One driver of this development are US companies and investors who are actively strengthening their position in the European market. At the same time, industrial companies are pursuing acquisitions to accelerate their strategic capabilities, particularly in the field of AI. We are also increasingly seeing growth companies on the buy-side as they seek to achieve rapid, inorganic growth or consolidation in their market through acquisitions.” Key findings: Across Europe, transaction volume in the growth company segment more than doubled in 2025: purchase prices of $47bn were reported for startups in 2024, compared to more than $102bn in 2025. In particular, the purchase prices for AI startups in Europe increased from $6bn to $15bn (where disclosed). In terms of the number of deals, Germany is among the top three target countries for startup transactions in Europe alongside the UK and France – this is also true specifically for AI transactions. The transaction values show a sharp upward trend for transactions involving growth companies also in Germany. While $3.8bn was invested in 2022, the figure rose to $11.2bn in 2025. AI investments in Germany rose from $300m to $1.6bn during this period, while for a large number of deals transaction values are not even disclosed. The number of reported transactions involving growth companies in Germany rose to 423 in 2025 (from 261 in 2022). “This development also shows consistently strong interest in German and European technology companies, and that they are once again able to achieve high valuations,” explains Dr. Lars Meyer, Global Co-Head of Tech, Media and Telecoms at Freshfields. "This is consistent with what we are seeing in our practice: there continues to be considerable investor and buyer interest in AI, but also in other areas such as defense tech, fintech, enterprise software and digital infrastructure. Successful exits, in turn, are an important signal to founders and investors that it is worthwhile to build and invest in companies in Europe." Looking ahead to 2026, Freshfields M&A Partner Dr. Philipp Pütz adds: “We are optimistic that M&A activity in the tech sector, as in other industries, will remain high in the new year. It remains to be seen whether geopolitical volatility or policy decisions in the major economies will create new challenges and thus cause caution in the transaction market.” IPOs also a valid strategic exit option An exit through a sale is not the only option available to founders. “The IPO market is picking up again,” explains Daniel von Bülow, partner for capital markets law at Freshfields. "Companies and owners are considering IPOs as a strategic option – and not just as an alternative to an M&A sale. A look at IPOs and listings in 2025 is encouraging. However, the market remains demanding: investors place particular emphasis on profitability, robust business models, and convincing growth strategies. It also remains to be seen whether the discussions around an AI bubble will have a short-term impact." For young companies, an IPO can be challenging if they are unable to demonstrate a clear path to profitability. "These companies should continue to focus on private investor rounds to accelerate their growth. Once that has been achieved, the path to the stock market is essentially open. Some growth companies are therefore already consciously preparing for an IPO over the long term. This option also applies to AI companies with strong fundamentals, as quality can prevail over short-term hype. The increasing number of delistings does not mean that IPOs have lost their relevance. “On the contrary: companies that decide to enter the capital market today are taking this step even more carefully. The quality of IPO candidates is increasing – and that is precisely what should strengthen confidence in the markets.” Graphics: Methodology: The figures refer to transactions with target companies that were founded no more than 10 years ago. The ownership structure is irrelevant. All types of M&A transactions are included. Venture capital financing rounds are not included in this evaluation. The focus is on Corp/Strategic M&A and Private Equity Buyout deals incl. add-ons – provided the transactions have been published and completed. Source/status: Pitchbook/5 January 2026

Jan 9

3 min

Global law firm Freshfields has examined the development of acquisitions involving startups, and AI startups in particular, in Germany and Europe. The evaluation is based on figures from the financial data provider Pitchbook. “The figures show that even in a volatile market environment, the tech sector and growth companies in particular continue to exhibit a high level of transaction activity,” says Laura Frühauf, Counsel for Tech M&A at Freshfields. She expects this trend to continue into the new year. “One driver of this development are US companies and investors who are actively strengthening their position in the European market. At the same time, industrial companies are pursuing acquisitions to accelerate their strategic capabilities, particularly in the field of AI. We are also increasingly seeing growth companies on the buy-side as they seek to achieve rapid, inorganic growth or consolidation in their market through acquisitions.” Key findings: Across Europe, transaction volume in the growth company segment more than doubled in 2025: purchase prices of $47bn were reported for startups in 2024, compared to more than $102bn in 2025. In particular, the purchase prices for AI startups in Europe increased from $6bn to $15bn (where disclosed). In terms of the number of deals, Germany is among the top three target countries for startup transactions in Europe alongside the UK and France – this is also true specifically for AI transactions. The transaction values show a sharp upward trend for transactions involving growth companies also in Germany. While $3.8bn was invested in 2022, the figure rose to $11.2bn in 2025. AI investments in Germany rose from $300m to $1.6bn during this period, while for a large number of deals transaction values are not even disclosed. The number of reported transactions involving growth companies in Germany rose to 423 in 2025 (from 261 in 2022). “This development also shows consistently strong interest in German and European technology companies, and that they are once again able to achieve high valuations,” explains Dr. Lars Meyer, Global Co-Head of Tech, Media and Telecoms at Freshfields. "This is consistent with what we are seeing in our practice: there continues to be considerable investor and buyer interest in AI, but also in other areas such as defense tech, fintech, enterprise software and digital infrastructure. Successful exits, in turn, are an important signal to founders and investors that it is worthwhile to build and invest in companies in Europe." Looking ahead to 2026, Freshfields M&A Partner Dr. Philipp Pütz adds: “We are optimistic that M&A activity in the tech sector, as in other industries, will remain high in the new year. It remains to be seen whether geopolitical volatility or policy decisions in the major economies will create new challenges and thus cause caution in the transaction market.” IPOs also a valid strategic exit option An exit through a sale is not the only option available to founders. “The IPO market is picking up again,” explains Daniel von Bülow, partner for capital markets law at Freshfields. "Companies and owners are considering IPOs as a strategic option – and not just as an alternative to an M&A sale. A look at IPOs and listings in 2025 is encouraging. However, the market remains demanding: investors place particular emphasis on profitability, robust business models, and convincing growth strategies. It also remains to be seen whether the discussions around an AI bubble will have a short-term impact." For young companies, an IPO can be challenging if they are unable to demonstrate a clear path to profitability. "These companies should continue to focus on private investor rounds to accelerate their growth. Once that has been achieved, the path to the stock market is essentially open. Some growth companies are therefore already consciously preparing for an IPO over the long term. This option also applies to AI companies with strong fundamentals, as quality can prevail over short-term hype. The increasing number of delistings does not mean that IPOs have lost their relevance. “On the contrary: companies that decide to enter the capital market today are taking this step even more carefully. The quality of IPO candidates is increasing – and that is precisely what should strengthen confidence in the markets.” Graphics: Methodology: The figures refer to transactions with target companies that were founded no more than 10 years ago. The ownership structure is irrelevant. All types of M&A transactions are included. Venture capital financing rounds are not included in this evaluation. The focus is on Corp/Strategic M&A and Private Equity Buyout deals incl. add-ons – provided the transactions have been published and completed. Source/status: Pitchbook/5 January 2026

Jan 9

3 min

On the eve of the Munich Security Conference, global law firm Freshfields once again hosted a high-profile panel discussion exploring the implications of the current geopolitical landscape for business and defense. Following welcome remarks by Senior Partner Georgia Dawson, Prof. Dr. Wolfgang Ischinger, chairman of the Munich Security Conference, opened the evening with an assessment of the current geopolitical environment. “We are living in particularly challenging times,” he said. “One of the missions of this year's security conference is to restore trust – like repairing a broken chain to get a bicycle running again.” Freshfields partner Ninette Dodoo, based in Hong Kong, moderated the panel of senior figures from business, academia, and politics. The discussion focused on the importance of strengthening transatlantic relations, mobilizing private capital for defense and harnessing the transformative potential of artificial intelligence. Former ambassadors Michael McFaul (Stanford University) and Dr. Peter Wittig (Schaeffler) emphasized the importance of a well-functioning transatlantic relationship. McFaul pointed to “a reform of the liberal international order” as potential path through current tensions. Investment in the defense sector should not focus solely on public spending “The markets have already reacted, and businesses are always adapting to developments, as is the case now,” said Dr. Philipp Hildebrand, Vice Chairman at BlackRock. Hildebrand and Hélène Huby, CEO of space startup The Exploration Company, echoed Ischinger’s earlier point: discussions on investment in the defense sector should not focus solely on public spending, but also on how private capital can be mobilized. Both highlighted the enormous potential of AI. “The effect is comparable to the invention of electricity,” said Hildebrand. Huby added: “In defense tech, Europe should aspire to become a global player.” Nadia Calviño, President of the European Investment Bank, underlined that, in addition to capital and knowledge, Europe brings values such as democracy, legal certainty and trust in business relations. Around 250 participants from various countries attended the event in Munich. In the lead-up, Freshfields hosted a fireside chat in Washington DC, with US Congressman John Moolenaar to discuss expectations for this year's Munich Security Conference. Earlier in 2025, Freshfields also convened discussions alongside key global forums, including the Warsaw Security Forum in September and the IISS Shangri-La Dialogue in Singapore in May. Overview of speakers: Welcome remarks: Georgia Dawson, Senior Partner, Freshfields Opening speech: Ambassador (ret.) Prof. Dr. h.c. Wolfgang Ischinger, Chairman of the Munich Security Conference, President of the Foundation Council of the Munich Security Conference Foundation Nadia Calviño, President of the European Investment Bank, former Minister of Economy and Business of the Kingdom of Spain Michael McFaul, Professor of Political Science at Stanford University, Director of the Freeman Spogli Institute for International Studies, and Peter and Helen Bing Senior Fellow at the Hoover Institution; former US Ambassador to Russia Philipp Hildebrand, Vice Chairman at BlackRock, former Chairman of the Governing Board of the Swiss National Bank Hélène Huby, Founder and CEO of The Exploration Company Ambassador (ret.) Dr. Peter Wittig, Senior Advisor Global Affairs at Schaeffler, former Ambassador of the Federal Republic of Germany to the United Nations, the United States, the United Kingdom and other countries The event took place in Munich and was moderated by Ninette Dodoo, Partner and head of Freshfields’ antitrust, competition and trade practice in China. The organizing committee was led by Partner Dr. Maximilian Lasson, of Counsel Dr. Thomas Lübbig, Principal Associate Dr. Malte Symann, Head of Public Affairs Alex Schmidtke and Senior Knowledge Lawyer Dr. Christian Altenhofen.

Feb 16

3 min

Global law firm Freshfields has advised Kartesia Management S.à r.l and affiliated funds on a hybrid financing to support the continued growth of AndCompany, a portfolio company of Rigeto Unternehmerkapital. Kartesia is a privately owned European asset manager specialised in private corporate lending, providing tailor-made long-term liquidity and credit solutions to European-based lower mid-market borrower. Rigeto Unternehmerkapital is a Munich-based family office and co-investor founded in 2013 focussing on medical technology, healthcare, business services as well as software and security. The hybrid financing solution is intended to support AndCompany GmbH’s continued growth and to further advance its buy-and-build strategy, which focuses on combining specialised IT consulting and software expertise under a house-of-brands model. The Freshfields team was led by Partner Michael Josenhans and further consisted of Counsel Alexander Pospisil, Principal Associate Hannes Butz and Associates Alexander Bräuer (alle Finance, Frankfurt) and Faras Mirhoseiny (Corporate/M&A, Berlin) as well as Research Assistant Serra Onal. Freshfields has previously advised Kartesia on the financing of a share purchase in FormMed Group.

Jan 23

1 min

Global law firm Freshfields has examined the development of acquisitions involving startups, and AI startups in particular, in Germany and Europe. The evaluation is based on figures from the financial data provider Pitchbook. “The figures show that even in a volatile market environment, the tech sector and growth companies in particular continue to exhibit a high level of transaction activity,” says Laura Frühauf, Counsel for Tech M&A at Freshfields. She expects this trend to continue into the new year. “One driver of this development are US companies and investors who are actively strengthening their position in the European market. At the same time, industrial companies are pursuing acquisitions to accelerate their strategic capabilities, particularly in the field of AI. We are also increasingly seeing growth companies on the buy-side as they seek to achieve rapid, inorganic growth or consolidation in their market through acquisitions.” Key findings: Across Europe, transaction volume in the growth company segment more than doubled in 2025: purchase prices of $47bn were reported for startups in 2024, compared to more than $102bn in 2025. In particular, the purchase prices for AI startups in Europe increased from $6bn to $15bn (where disclosed). In terms of the number of deals, Germany is among the top three target countries for startup transactions in Europe alongside the UK and France – this is also true specifically for AI transactions. The transaction values show a sharp upward trend for transactions involving growth companies also in Germany. While $3.8bn was invested in 2022, the figure rose to $11.2bn in 2025. AI investments in Germany rose from $300m to $1.6bn during this period, while for a large number of deals transaction values are not even disclosed. The number of reported transactions involving growth companies in Germany rose to 423 in 2025 (from 261 in 2022). “This development also shows consistently strong interest in German and European technology companies, and that they are once again able to achieve high valuations,” explains Dr. Lars Meyer, Global Co-Head of Tech, Media and Telecoms at Freshfields. "This is consistent with what we are seeing in our practice: there continues to be considerable investor and buyer interest in AI, but also in other areas such as defense tech, fintech, enterprise software and digital infrastructure. Successful exits, in turn, are an important signal to founders and investors that it is worthwhile to build and invest in companies in Europe." Looking ahead to 2026, Freshfields M&A Partner Dr. Philipp Pütz adds: “We are optimistic that M&A activity in the tech sector, as in other industries, will remain high in the new year. It remains to be seen whether geopolitical volatility or policy decisions in the major economies will create new challenges and thus cause caution in the transaction market.” IPOs also a valid strategic exit option An exit through a sale is not the only option available to founders. “The IPO market is picking up again,” explains Daniel von Bülow, partner for capital markets law at Freshfields. "Companies and owners are considering IPOs as a strategic option – and not just as an alternative to an M&A sale. A look at IPOs and listings in 2025 is encouraging. However, the market remains demanding: investors place particular emphasis on profitability, robust business models, and convincing growth strategies. It also remains to be seen whether the discussions around an AI bubble will have a short-term impact." For young companies, an IPO can be challenging if they are unable to demonstrate a clear path to profitability. "These companies should continue to focus on private investor rounds to accelerate their growth. Once that has been achieved, the path to the stock market is essentially open. Some growth companies are therefore already consciously preparing for an IPO over the long term. This option also applies to AI companies with strong fundamentals, as quality can prevail over short-term hype. The increasing number of delistings does not mean that IPOs have lost their relevance. “On the contrary: companies that decide to enter the capital market today are taking this step even more carefully. The quality of IPO candidates is increasing – and that is precisely what should strengthen confidence in the markets.” Graphics: Methodology: The figures refer to transactions with target companies that were founded no more than 10 years ago. The ownership structure is irrelevant. All types of M&A transactions are included. Venture capital financing rounds are not included in this evaluation. The focus is on Corp/Strategic M&A and Private Equity Buyout deals incl. add-ons – provided the transactions have been published and completed. Source/status: Pitchbook/5 January 2026

Jan 9

3 min