Germany boasts a thriving deep tech landscape, with a strong focus on artificial intelligence, blockchain, and robotics. Berlin, the country’s capital, is a significant hub for this sector, hosting 39% of all German deep tech startups. Munich and Hamburg also play pivotal roles, housing 17% and 9% of the startups respectively.

The German deep tech sector is primarily funded by domestic investors, who account for 65% of the total investment. International investors, particularly from the US and UK, provide the remaining 35%.

Startups in the artificial intelligence field receive the most funding, followed by those in the blockchain and robotics sectors. The healthcare industry is a significant adopter of deep tech, with 28% of all deep tech startups focussed on this sector. Other industries that utilise deep tech include automotive, finance, and logistics.

Despite the robust growth, the German deep tech sector faces several challenges. These include a lack of skilled workers, difficulty in accessing capital, and regulatory hurdles. To overcome these obstacles, the German government is implementing various measures, including promoting education in relevant fields, encouraging international collaborations, and streamlining regulatory processes.

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