The current reports and statistics indeed show an alarming wave of insolvencies in Germany in the second quarter of 2025. In March 2025, a total of 10,794 insolvency proceedings were registered, marking a significant increase compared to previous periods. By December 2024, the number of insolvency proceedings was already at 9,546, indicating a rising trend.
Corporate Insolvencies: A Look at the Numbers
This development mainly affects companies: In 2024, approximately 44.8 percent of corporate insolvencies were attributable to limited liability companies (GmbH), making them the largest share of insolvencies. The increase in insolvencies has far-reaching implications for the German economy:
- Economic Stability: The rising corporate insolvencies signal a deterioration in the economic environment and can lead to a loss of confidence among investors and business partners.
- Labor Market: A decline in employment has already been observed in the first quarter of 2025, which may correlate with the waves of insolvencies.
- Private Investors: Many private investors are indirectly affected, as they rely on stable corporate developments—whether through stock investments or other holdings.
The Silver Lining: Start-up Financing
Interestingly, despite these negative signals, there is a certain optimism in the area of start-up financing: The German venture capital market significantly gained momentum in the second quarter of 2025, recording a deal volume of around 2.4 billion euros—an increase of +45% compared to the first quarter. This may suggest that investors are increasingly investing in innovative young companies in response to uncertainties at established firms.
In summary, it can be said: The wave of insolvencies is indeed rolling through Germany with a noticeable increase in corporate insolvencies, particularly among GmbHs, in the second quarter of 2025. This considerably burdens the overall economy as well as private investors while standing in contrast to a dynamic development in the venture capital market.