The burgeoning startup ecosystems in the DACH region (Germany, Austria, and Switzerland) and Central and Eastern Europe (CEE) are rapidly emerging as powerhouses of innovation, drawing increasing global attention. These regions’ dynamic blend of technological advancement, robust revenue growth, and noteworthy profitability is redefining the European tech landscape. The 2025 Sifted 100 DACH & CEE Leaderboard captures this momentum by ranking the 100 fastest-growing startups from this diverse expanse, revealing not only the quantitative growth but also strategic directions and investor confidence fueling these ecosystems.
At the heart of this vibrant ecosystem lies a fascinating array of startups tackling an impressive spectrum of challenges. From drug discovery and carbon reduction to sophisticated open banking platforms and climate tech innovations, the diversity is striking. For instance, Climatiq—a frontrunner in emissions data analytics—has swiftly secured a spot among the top 10 fastest-growing companies. This reflects a crucial global shift as businesses increasingly embed sustainability into their core operations, making companies like Climatiq pivotal players in the climate tech arena.
What sets many of these startups apart isn’t merely their rapid revenue growth but their sustainable business models, reflected in profitability metrics. Among the 100 leaders, 27 companies are profitable—a remarkable feat in a sector known for fast growth often weighed down by losses. To put this in perspective, comparable leaderboards from the UK and Ireland feature 25 profitable companies, and France & Southern Europe anticipates 32. This places DACH & CEE on firm financial footing, indicating a maturing ecosystem that balances aggressive scalability with sound economic health.
Diving deeper, certain sectors within these regions are turbocharging the growth narrative. Fintech stands out with 30 startups on the leaderboard, showing an 18% increase from the previous year and collectively raising more than €3 billion. The surge in fintech companies specializing in API infrastructure for open banking highlights a growing appetite for seamless, integrated financial services across the DACH and CEE markets. German startup Finmid, ranking third, exemplifies this flourish, acting as a bellwether for the sector’s vitality and investor confidence.
Climate tech is gaining prominence as well, albeit with fewer startups than fintech—twelve in total—but marked by extraordinary growth in both revenue and workforce. This trend concurs with broader European patterns where climate tech’s thrust leans heavily on hardware and infrastructural solutions. Consider the Swedish company Flower, which nailed a €45 million Series A round in 2025, boasting a staggering 497% compound annual growth rate (CAGR). Its success speaks volumes about the region’s strategic response to global imperatives such as energy efficiency and decarbonization, spotlighting the potential to scale sustainable solutions in tandem with market demand.
Underpinning these thriving sectors are seasoned investors and specialized funding strategies integral to scaling startups successfully. HV Capital, a stalwart in Germany’s venture capital scene, has championed this ecosystem for over two decades, backing notable names such as Depop, Delivery Hero, and HelloFresh—starters turned industry giants. Beyond traditional equity injections, venture debt facilities are becoming increasingly vital, with Citi’s €1 billion facility to Finn, the leaderboard’s top company for the second year running, underscoring this evolution. These financial instruments provide tailored growth capital that supports scaling without diluting founders’ equity, reflecting an increasingly sophisticated capital market ecosystem.
Geographically, the DACH and CEE regions paint an intriguing map of varied innovation hubs. Germany remains the heavier hitter, yet cities like Vienna are fast carving out reputations as nexus points between established Western markets and the burgeoning entrepreneurial landscapes of Eastern Europe. Such regional diversity fosters a unique cross-pollination of ideas, investment, and talent, enriching and accelerating the pace of innovation in ways monolithic ecosystems might not.
The tech ecosystem doesn’t stop with fintech and climate tech. Emerging sectors like healthtech and beauty tech are carving out niche yet fast-growing market segments. Companies like Haut.AI harness AI-driven diagnostics and personalized beauty solutions, expanding startup innovation well beyond the traditional software and infrastructure realms. This diversification not only widens the scope of technological impact but also demonstrates the adaptability and breadth of the DACH & CEE startup ecosystem.
A few key takeaways emerge from these patterns. First, the rare combination of rapid revenue growth coupled with a significant number of profitable startups signals an ecosystem coming of age—one where scaling is aligned with financial sustainability. Second, the predominance of fintech and climate tech reflects how regulatory climates, market appetites, and global sustainability goals help shape the regional innovation landscape. Third, investor networks with deep market experience and flexible funding options are indispensable to converting promising startups into established leaders. Fourth, the geographic and sectoral diversity within these regions fuels a collaborative, resilient, and creative ecosystem.
Overall, the 2025 Sifted 100 DACH & CEE Leaderboard captures a snapshot of a region brimming with innovation, strategic growth, and financial maturity. With a strong cohort of profitable companies, increasing fintech investment, and differentiated climate tech ventures, DACH and CEE solidify their standing as crucial nodes in Europe’s tech startup corridor. As these startups continue to leverage cutting-edge technologies and enjoy seasoned investor support, the region is well poised to make significant contributions across multiple sectors, driving forward both regional and global innovation economies with resilience and foresight.
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