AI Drives Startup Growth: Hessen Scores with Research and Knowledge Transfer in Record Year 2025

Germany is experiencing a new wave of entrepreneurial momentum: according to the latest Next Generation Report by the German Startup Association, 3,568 startups were founded in 2025 – an increase of 29 percent compared to the previous year and a new all-time high. Particularly strong growth can be seen in the field of Artificial Intelligence (AI), which now accounts for 27 percent of all new startups.

The outlook in Hessen is equally positive: with 247 new startups (+29 percent), the state ranks fifth nationwide. The main startup hubs remain Frankfurt and Darmstadt. Darmstadt currently holds seventh place among all German cities – a reflection of the close connection between research and entrepreneurship fostered around Technische Universität Darmstadt and the Hessian Center for Artificial Intelligence (hessian.AI).

In Hessen, hessian.AI – The Hessian Center for Artificial Intelligence – plays a key role in shaping this trend. Through the AI Startup Rising (AISR) program, supported by the Federal Ministry for Economic Affairs and Climate Action (BMWE), research-based AI teams are guided on their path from idea to company. The AI Startup Landscape Hesse, curated by AISR | hessian.AI, already identified 237 AI startups across the state in 2025, with particularly strong activity in the software and medical domains.

With outstanding research as its foundation, targeted support programs, and a vibrant network of partners, Hessen’s AI ecosystem is moving decisively toward the future – turning ideas into innovation.

Read the full report by the German Startup Association here: Next Generation 2025