Green Startup Report 2025

Green Startup Report 2025 Foreword “It‘s the economy, stupid!” More than thirty years ago, Bill Clinton coined this slogan during the U.S. presidential campaign. Much has happened since then — economically and politically, scientifically and ecologically. Today we know: it‘s the ecology, stupid! We must not forget that a healthy environment is the foundation for successful economic activity. Especially in economically and politically challenging times, it is crucial that we stay on course and continue to invest in sustainable innovations. The World Economic Forum’s Global Risk Report 2025* underscores the importance of protecting the climate and biodiversity. According to the report, extreme weather events, biodiversity loss, and ecosystem collapse are among the greatest risks of the next ten years. These environmental threats are not just long-term challenges — they also pose immediate risks to our society and economy. The findings make it clear: action is needed to minimize these risks and secure a sustainable future. Green start-ups play a central role in this effort. They are the pioneers who, with their innovative ideas and technologies, are paving the way for a sustainable economy. These companies demonstrate that economic success and ecological responsibility can go hand in hand. They prove that it is possible to develop and implement sustainable business models even in difficult times. The Green Startup Report 2025 provides a comprehensive, detailed, and encouraging overview of the current state and development of green start-ups in Germany. It lays the foundation for how sustainable economic growth can succeed.. Sincerely, Alexander Bonde Secretary General of the German Federal Environmental Foundation (DBU) 2 Alexander Bonde Secretary General of the German Federal Environmental Foundation * Elsner et al. (2025) 2019 2020 2021 2022 2023 2024 2025 2026 Green Economy Gründungsmonitor Green Startup Monitor Green Startup Report 2013 2014 2015 2016 2017 2018 Since 2013, the Borderstep Institute has published annual data on green start-ups and new ventures in Germany. We have continuously improved the coverage, analysis methodology, and informative value of our data. With the Green Startup Report 2025, we are taking monitoring to the next level. The report is based on a comprehensive record of all start-ups in Germany that are registered as corporations (e.g., UG, GmbH, AG, etc.). The findings are drawn from around 18,000 commercial register entries for start-ups and over 50,000 records of investments in these companies. In addition, we no longer rely on the self-assessment of start-ups to determine whether they are „green“ or not. Instead, we evaluate the environmental performance of their products and services using a rigorous scientific methodology, drawing on the classification of environmental goods and services as defined by the European statistical office EUROSTAT *. We are also breaking new ground in other areas. With the GSR 2025, we present—for the first time worldwide—data on the climate mitigation potential of young, innovative companies, based on the Borderstep Institute’s Impact Database. In our new “Spotlights” section, we invite colleagues from the research community to share their latest findings and insights on green startups and their specific challenges and opportunities. In doing so, we are expanding the data and knowledge base on what drives success and how ecosystems must be shaped to support it. In the past, the data, findings, and recommendations from our publications have been widely received by policymakers, funding institutions, and the start-up ecosystem—something we are proud of. With the strong and growing network of partners behind the Green Startup Report 2025, our findings are now reaching an even broader audience. In this way, we are living up to our mission of delivering “science with impact” and contributing, through scientific means, to the major transformation challenges of our time. Prof. Dr. Klaus Fichter Director Borderstep Institute for Innovation and Sustainability Preface 3 * European Commission: Eurostat (2016) Table of contents Objectives of the Green Startup Report and Definition of green Start-ups 5 The NEW Green Startup Report 6 Seven key facts from the GSR 2025 7 Green Start-ups: Distribution, Characteristics and Financing 8 Climate Mitigation Potential of green Start-ups 16 Spotlights on Current Topics and Research 21 Conclusions for Policy and the Start-up Ecosystem 31 Research Design and Methodology 34 Authorship and Publishers 38 Partner Network of the GSR 2025 40 Imprint and Sources 41 Goals of the Green Startup Report and definition of green Start-ups Highlighting the significance of green start-ups in the German start-up landscape and as drivers of innovation for a Green Economy Identifying specific challenges and potentials of green start-ups Deriving conclusions to improve the founding and market environment for green start-ups Goals Start-ups are less than 10 years old, are (highly) innovative and / or have (planned) employee or revenue growth, and contribute through their products and services to the environmental goals of a Green Economy. Characteristics of green start-ups The NEW Green Startup Report 2025 Commercial register data 17,954 commercial register entries on innovative and growth-orientated start-ups (identified by startupdetector) 53,034 commercial register entries for investments made in start-ups Environmental assessment by scientific team by means of a multi-stage evaluation and validation process based on the EUROSTAT * sector classification for environmental goods and services Evaluation of the start-ups‘ websites and other documents Borderstep database on climate mitigation potential Database on the climate mitigation potential of green start-ups‘ products/services based on innovative impact forecasting methodology The comprehensive recording of all start-ups in the legal form of a corporation based on commercial register data allows a generalisation of the findings as well as the analysis of absolute figures with a high degree of timeliness. The non-anonymised data allows a methodologically sound and reliable categorisation into green and nongreen start-ups. The objective data basis (as opposed to a self-assessment) allows for more robust results and a more nuanced view and analysis of green start-ups. Distortions due to socially desirable answers can be excluded. The new database enables a look at new areas of the start-up ecosystem, such as the support and financing landscape, as well as a link to previously untapped data sources on start-up actors, investments and i nnovations. For the first time, we are inviting other researchers and practice partners to prepare important findings and insights on green start-ups and the sustainability of the start-up ecosystem in a short form for the GSR. Spotlights from the work of other important players from research and practice strengthen the GSR as an information base for the green start-up ecosystem. Findings from different data bases and analyses enable new and different perspectives and inspire the research and implementation agenda. New data basis Advantages of the new data basis Spotlights: more voices and insights from the ecosystem * European Commission: Eurostat (2016) Detailed description of the methodology on pages 35-37 Green start-ups on the road to success More and more young companies are focussing on sustainability! One in five start-ups is now developing innovative products and services that demonstrably protect the environment and climate. Green business ideas are particularly well represented among growth-orientated start-ups with investment (29%). Enormous climate mitigation potential For the first time, the GSR provides figures worldwide on the climate mitigation potential of young innovative companies. On average, the potential of a single transformation-oriented green startup is 30,000 tonnes of CO2e per year. This corresponds to a value of around € 2.4 million in the EU emissions trading system. Women more often in the management At 22 %, the proportion of women in the management of green start-ups is significantly higher than in non-green start-ups (17 %). This indicates that sustainable business models are more attractive to female founders and/ or that green start-ups are more willing to actively embrace and promote diversity in management roles. NRW: pioneer of green start-up support The support landscape of a single federal state was analysed for the first time. 86 % of green start-ups in NRW rate the start-up ecosystem that has been developed over the last ten years as good or very good. Satisfaction with green start-up support is therefore well above the national average of 56 %. EXIST & HTGF greener than average Although green start-ups do not receive any specific environmental incentives from EXIST and High-Tech Gründerfonds, they are represented above average. Among EXIST grantees, the proportion was 33 % in 2024. This shows their technological and economic attractiveness. important facts from the GSR 2025 Use of AI and critical reflection 88 % of the green start-ups surveyed already use generative AI, particularly for marketing and sales. At the same time, 34 % see the use of generative AI as a significant risk to their sustainable mission and integrity, partly due to the high energy consumption. Funds increasingly focus on on climate mitigation 73 % of fund managers take climate aspects into account when making investment decisions - driven by regulatory requirements, optimisation of portfolio performance and ethical responsibility, among other things. “The figures show: The motivation to found green start-ups based on science is increasing. Venture capital investors regard start-ups in this field as attractive investment objects. The EXIST and HighTech Gründerfonds funding programmes also make an important contribution here with an above-average proportion of green start-ups. In this way, we are putting green start-ups on the road to success through targeted support - for real added value for the climate and society.” ( Editors translation * ) Dr. Armgard Wippler Head of the “SME and Start-up Financing, KfW” sub-department at BMWK * Original quote: „Die Zahlen zeigen: Die Motivation, grüne Startups aus der Wissenschaft heraus zu gründen, steigt. Risikokapitalinvestoren betrachten Start-ups in diesem Bereich als attraktive Anlageobjekte. Auch die Förderprogramme EXIST und High-Tech Gründerfonds leisten hier einen wichtigen Beitrag mit einem überdurchschnittlichen Anteil grüner Start-ups. So bringen wir durch gezielte Unterstützung grüne Start-ups auf die Erfolgsspur – für echten Mehrwert für Klima und Gesellschaft.“ Dr. Armgard Wippler – Leiterin der Unterabteilung „Mittelstandsund Start-up-Finanzierung, KfW“ im BMWK GREEN START-UPS: DISTRIBUTION, CHARACTERISTICS AND FINANCING Heterogeneous distribution of green start-ups in Germany Distribution of green start-ups by administrative districts (NUTS-2, average value for the years 2019 - 2024) 9Based on the analysis of 2,113 green and 10,148 non-green start-ups founded between 2019 and 2024. Share of green start-ups in the respective federal state (NUTS-1, average value for the years 2019 - 2024) By far the largest number of green startups identified (21 %) came from the Berlin region, followed by Upper Bavaria (13 %), Cologne (8%), Hamburg (6 %) and Darmstadt (6 %). There is a north-south divide in the proportion of green start-ups among all start-ups in a federal state. Mecklenburg-Western Pomerania is the clear leader here with 27 %, followed by Bremen (25 %), Brandenburg (21 %) and Schleswig-Holstein (20 %). MecklenburgWestern Pomerania SchleswigHolstein Bremen Hamburg Saxony-Anhalt Lower Saxony North Rhine Westphalia Rhineland-Palatinate Saarland Saxony Thuringia Baden-Württemberg Bavaria Hesse Berlin Brandenburg Berlin Upper Bavaria Cologne Düsseldorf Karlsruhe Brandenburg Schleswig-Holstein Fribourg Dresden Schwaben Tübingen Weser-Ems Rheinhessen Brunswick Leipzig Middle Franconia Lower Franconia Upper Franconia Saxony-Anhalt Chemnitz Trier Bremen Mecklenburg Detmold Thuringia Gießen Kassel Lüneburg Upper Palatinate Lower Bavaria Saarland Koblenz Münster Hannover Arnsberg Hamburg Darmstadt Stuttgart 4 % 3 % 3 % 2 % 2 % 2 % 2 % 2 % 1 % 1 % 1 % 1 % 1 % 1 % <1 % <1 % <1 % <1 % 1 % 1 % 1 % 1 % 1 % 1 % 1 % 1 % 1 % 1 % 1 % 2 % 2 % 2 % 5 % 21 % 13 % 8 % 6 % 6 % 27 % 20 % 24 % 16 % 10 % 19 % 17 % 16 % 13 % 19 % 20 % 17 % 17 % 19 % 18 % 21 % Green start-ups demonstrably contribute to compliance with the Paris Climate Agreement and thus to a reduction in the economic damage caused by the climate emergency. They also show ways in which new technologies, such as AI, can be used to meet the Paris climate target. The faster green start-ups grow, the faster the positive benefits for society as a whole grow. Ruth von Heusinger , Founder and Managing Director of ForTomorrow CLIMATE MITIGATION POTENTIAL OF GREEN START-UPS 17 Climate mitigation potential of green start-ups examined for the first time Green start-ups generate a double dividend: In addition to economic added value (jobs, profits, etc.), they also create ecological added value with their innovative products and services - for example through climate and nature conservation or improved resource efficiency. While there are established indicators and assessment methods for economic performance, it was previously unclear how big the ecological impact and potential of green start-ups is. With the GHG & Impact Estimator - a new, innovative methodology - the Borderstep Institute has now quantified the concrete climate mitigation potential of green start-ups for the first time and created an impact database. The results presented here relate to the subgroup of transformation-oriented green start-ups that strongly prioritize ecological and/or social sustainability goals as well as rapid growth and a high market share. * The climate mitigation potential depends, among other things, on the development phase, the age and the planned realistic sales growth of the start-up. A direct comparison of the results of individual start-ups only makes sense if the assumptions are examined in detail. The methodology in brief: Self-assessment of green start-ups with scientific support Calculation of the future CO2e reduction potential through the start-up‘s products and services (no CO2 footprinting) Fair comparison between start-up solution and reference product Focus on significant differences in emissions, no complete comparative life cycle assessment (LCA) Forecast using sales projection for the next five years Result: Planned climate mitigation potential of the start-up with successful market entry Detailed description of the methodology on page 37 *see Olteanu & Fichter (2022) For transformation-oriented green start-ups, an average climate mitigation potential of 30,000 tons of CO2e per year can be assumed. The climate mitigation potential of individual green start-ups varies considerably: while some start-ups achieve annual climate mitigation potentials of just a few hundred tons of CO2e, others achieve potentials of hundreds of thousands of tons per year. Translating the climate mitigation potential into an economic value by multiplying it by a CO2 price of € 80 *, it corresponds to a monetary value of € 2.4 million per year per transformation-oriented green start-up. This shows for the first time the ecological side of the double dividend as an economic value. Transformation-oriented green startups have the potential to reduce 30,000 tonnes of CO2e annually. This corresponds to the climate mitigation contribution of seven modern wind turbines, which supply 24,000 households with electricity, as well as an economic value of € 2.4 million per year for climate mitigition per start-up. 18 Green start-ups have a considerable climate mitigation potential * based on the average CO2 price for 2022/23 in the European Emissions Trading System. 3 0 . 0 0 0 t 19 Practical examples of the climate mitigation potential Better SOL GmbH (founded in 2022) inspects and sells used solar modules and thus avoids the energyand resource-intensive production of new modules. For every 1 kWp of second-life solar module output, approx. 800 kg of CO2e emissions are reduced, meaning that Better SOL achieves a climate mitigation potential of 9,600 tons of CO2e / year with the planned company growth. Trailer Dynamics GmbH (founded in 2018) develops batteryelectric drives for semi-trailers, which can reduce diesel consumption by an average of 40% and increase the range of e-trucks. Emissions are reduced by around 2,900 kg CO2e per vehicle, meaning that Trailer Dynamics will achieve a climate mitigation potential of 30,800 tons of CO2e / year with the planned expansion of production. The advantage of having a concrete figure for our contribution to climate mitigation enables us to communicate this to our customers and potential donors, but also to constantly measure ourselves and make targeted improvements. Luisa Schulze, founder We are shaping the future of sustainable logistics by creating the basis for emission-free freight transportation. Through innovation and environmentally friendly solutions, we are making an active contribution to climate mitigation and the green transformation of the transportation sector. Abdullah Jaber, CEO Climate mitigation potential of Better SOL Climate mitigation potential of Trailer Dynamics 0 5,000 10,000 15,000 20,000 2029 2028202720262025 0 20,000 40,000 60,000 80,000 2030 2029202820272026 tons CO2e / atons CO2e / a 20 Practical examples of the climate mitigation potential elementarhy GmbH (founded in 2024) develops resourceand cost-efficient membrane technology for green hydrogen production - with two strong climate mitigation effects: faster scaling of green hydrogen production, which emits approx. 75% less CO2e compared to fossil hydrogen, and an approx. 95% reduction in critical raw material requirements, e.g. iridium, compared to comparable technologies. By scaling up its ongoing pilot production, elementarhy is projected to achieve a climate mitigation potential of 935,000 tons of CO2e / year. Train4Impact * offers free webinars, workshops and individual coachings on the topic of sustainability and impact assessments for start-ups. As a start-up, you can book 1:1 coaching to calculate your climate mitigation potential directly here or register for one of the many workshops: impactnexus.io/t4i Start-up supporters can adapt and integrate the Train4Impact offerings into their program free of charge. Register at: start-green.net/train4impact/ The reduction of CO2 emissions, critical raw materials and costs through elementarhys‘ technology enables the energy transition and strengthens the security of supply. Arne Birth, CFO/CMO * Funded by the European Union and the Federal Ministry for Economic Affairs and Energy through the European Social Fund Plus (ESF Plus). 0 1 Mio. 2 Mio. 3 Mio. 4 Mio. 2029 2028202720262025 tons CO2e / a Climate mitigation potential of elementarhy Latest results from the research community With the new “Spotlights“ format, we invite colleagues from the research community to present their latest results and findings on green start-ups and their specific challenges and potential in the Green Startup Report. To this end, we make the Green Startup Report‘s impact data pool available for additional evaluations and enable interested researchers to contribute their own data sources and current research findings. In this way, we are expanding the data and knowledge base on the conditions for the success of green start-ups, relevant trends and the necessary design of start-up and innovation ecosystems. In this way, we are pooling the latest knowledge on the need for action for sustainable entrepreneurship and the success of the major transformation tasks ahead of us. SPOTLIGHTS 22 Junior Professor Dr. Jeanine Kirchner-Krath heads the “Digitalization and Sustainable Business“ research group at the University of Koblenz. In the Spotlight, she presents the results of an in-depth sample survey based on the GSR dataset. She explores the question of how green start-ups use generative AI and the challenges they face. For me personally, a new era has begun: use your creativity and ideas and create added value for society with the help of various AI tools. Anonymous response from one of the green start-ups surveyed SPOTLIGHT AI Generative AI in green start-ups 23 Use of generative AI in various business model areas in % of all green start-ups surveyed Based on an anonymized survey of 128 green start-ups conducted in winter 2024/25. 87.5 % already use generative artificial intelligence (AI) in one or more areas of their company. Generative AI is most frequently used in the areas of marketing and sales (66 %), followed by support for operational activities (49 %). 47 % of green start-ups also use generative AI specifically for the (further) development of their value proposition. They consider AI as a creative sparring partner that helps them to optimize their impact in a targeted manner. Generative AI therefore has the potential to further strengthen the ”double dividend” – economic success and sustainable impact - of green start-ups. SPOTLIGHT AI Generative AI finds its way into business models of green start-ups 0 20 40 60 Marketing, sales and communication 66 Conception and expansion of the value proposition 47 Market positioning and analysis 23 Operational processes 49 24 Challenges for the use of generative AI in green start-ups in % of all green start-ups surveyed Based on an anonymized survey of 128 green start-ups conducted in winter 2024/25. Green start-ups currently still see major challenges that stand in the way of unlocking the potential of generative AI. In particular, technological challenges are listed, e.g. with regard to the quality and reliability of AI-generated content. The start-ups see economic challenges in the security and utilization of their data and in complying with the legal framework, among other things. It is worth noting that green start-ups also see social and environmental challenges. In particular, the high energy consumption of generative AI is seen as a risk to its sustainable mission and integrity. SPOTLIGHT AI Generative AI poses challenges As a company that is committed to sustainability, we are critical of the high energy intensity of many AI systems. Anonymous response from a green start-up 0 20 40 60 technological challenges social & ecological challenges economic challenges 34 52 42 SPOTLIGHT NORTH RHINE WESTPHALIA (NRW) Green start-ups in NRW 25 As a senior researcher at the Borderstep Institute, Dr. Thomas Neumann is responsible for investigating national and international ecosystems for green start-ups. In the Spotlight, he presents how the Green Start-up Monitor NRW * is the first detailed analysis of the green start-up scene in a single federal state. Link to the Green Start-up Monitor NRW Oliver Krischer, Minister for the Environment, Nature and Transport in NRW With customized support programs for green start-ups, we have pursued the right strategy and carried out valuable pioneering work. *Neumann et al. (2024) Making green start-ups and their impact visible and measurable in funding programs The GSR shows that the proportion of green start-ups in important funding and financing programs such as EXIST and the High-Tech Gründerfonds is above average and growing continuously. As the founding teams do not receive a bonus for the environmental performance of their products and services in these programs, this is evidence of the technological and economic attractiveness of green start-ups. In order to be able to evaluate their growing importance and the impact of federal and state programs in a more targeted manner, green start-ups should be systematically recorded as a separate category in statistics and evaluations in the future - based on EUROSTAT‘s EGSS classification for environmental products and services. In addition, the actual contribution of the funded start-ups to the ecological transformation should also be recorded. The GHG & Impact Estimator presented on p. 37 provides a sound methodology for evaluating the climate mitigation potential of individual start-ups or entire programs on the basis of data. This creates transparency and comparability and provides important insights into the contribution of these programs as well as a basis for their development. 88 % of the green start-ups surveyed already use generative AI, particularly for marketing and sales. At the same time, 34 % see the use of generative AI as a significant risk to their sustainable mission and integrity, partly due to the high energy consumption. Training and advisory services on the use of AI to increase impact and the use of more resource-efficient AI models should therefore be included in start-up funding offers, e.g. with the help of „AI innovation vouchers“ and through integrative training and coaching offers, e.g. in accelerator programs. “AI literacy”: targeted funding of the sustainable use of AI in start-ups 32 33 Climate mitigation potential as a possible source of financing for green start-ups With the GSR 2025, Borderstep provides the world‘s first figures on the climate mitigation potential of young innovative companies. On average, the potential of a single transformation-oriented green start-up is 30,000 tons of CO2e per year. This corresponds to a value of around € 2.4 million per company in the EU emissions trading system. Green start-ups thus generate positive external effects for which they have not yet been rewarded in the market context. In view of the financing challenges faced by green deep tech start-ups with long development and testing periods in particular, it should be examined whether climate mitigation services can be intelligently pre-financed. Climate forward financing approaches promote or finance in advance the emission reductions or carbon removals that can be achieved in the future through clearly defined climate mitigation measures. These approaches have not yet been developed for start-ups. Estimates by the Borderstep Institute assume an additional financing volume for green start-ups in Germany of over € 6 billion per year. This report shows that green business ideas are particularly well represented among growth-oriented start-ups with investment (29 %). This high proportion underlines the scaling potential of green tech start-ups and their economic attractiveness. This makes them attractive both for investment funds that integrate climate and ESG criteria due to regulatory requirements, such as the Sustainable Finance Disclosure Regulation (SFDR), and in particular for funds that want to strategically differentiate themselves on the market through sustainability. For start-ups with green products and business models, it is therefore advisable to analyze the specific characteristics of these funds and their investment strategies in advance and adapting the pitch deck accordingly. As the study by Block et al. presented in the „Spotlights“ section shows, the probability of successful financing or at least an invitation to a personal pitch increases significantly. Communicating the economic attractiveness of green start-ups for investments more effectively This GSR contains a number of data and method-related improvements compared to previous publications. In particular, commercial register data (filtered in advance by startupdetector) is now available in non-anonymized form, which offers many more options for analysis and data supplementation than anonymized data. The differentiation of startups according to the criteria “innovative” and “growth-oriented” could be made even more precise by startupdetector. The distinction between green and non-green start-ups is appropriate and transparent. It would be beneficial if international comparisons were possible, such as in the Global Entrepreneurship Monitor (GEM). The need for an annual cross-sectional study, which could gradually take on a longitudinal character, exists in science as well as in start-up policy and is growing. Prof. Dr. Rolf Sternberg Head of the Germany country team of the Global Entrepreneurship Monitor (GEM) Photo: Fabian Niebauer | Faculty of Natural Sciences LUH RESEARCH DESIGN AND METHODOLOGY 35 Data basis A comprehensive analysis of commercial register data was carried out for the first time for the Green Startup Report 2025. It is based on a complete survey of all start-ups in Germany in the legal form of a corporation (UG, GmbH, AG, etc.). This enables an objective and methodologically sound view of the green start-up scene. The start-ups were identified by startupdetector GmbH, which systematically analyzes commercial register entries. A multi-stage process was used that combines algorithmic filtering with manual checks. Only companies that are registered as a corporation and develop their own, usually innovative product and/or have the potential for strong growth were classified as start-ups *. As part of the Green Startup Report 2025, 17,954 commercial register entries of startups founded between January 2019 and December 2024 were examined on this basis. In addition, 53,034 commercial register entries on investments made in start-ups were analyzed. This includes capital increases with external investors and the participation of various sources of financing such as venture capital and business angels. This means that, for the first time, reliable statements can be made about how green start-ups differ from other start-ups in terms of their financing structure. * A detailed description of how startupdetector identifies startups can be found here: https://www.startupdetector.de/datenbank/ 1. Analysis of all startups recorded in the commercial register 2. Automatic verification of whether the companies meet the criteria for a start-up 3. Renewed manual review of all potential start-ups 4. Final selection of innovative and growth-oriented start-ups approx. 3 % of all newly founded companies are start-ups approx. 80 % not innovative or not growth-oriented 100,000 newly founded companies per year approx. 17 % not innovative or not growth-oriented 36 Differentiation between green and non-green start-ups Green start-ups are innovative and growthoriented young companies that contribute to the ecological goals of a green economy with their products or services. The distinction between green and non-green start-ups is based on the European Commission‘s Environmental Goods and Services Sector (EGSS) classification system *, whose keyword list was expanded to over 400 specific terms for the study. This contains keywords that describe products and services of the green economy and serve as a central reference for the classification. A three-stage semi-automated process was developed to ensure a valid classification. 1 Comparison of company data with the EGSS keyword list to identify potential green start-ups. 2 Analysis of company websites using Large Language Models (LLMs) to identify evidence of primary activity in the Green Economy. Companies without sufficient online information are excluded. 3 Manual review of the potential green start-ups identified in step 1 or 2 by experienced reviewers. The result is a clear distinction between 2,113 green and 10,148 non-green start-ups that were founded between 2019 and 2024. The methodology was validated through sample checks and comparisons with external data sources, including a complete manual review of 571 EXIST-funded start-ups. The results show a high degree of accuracy and reliability: less than 1 % of EXIST start-ups were incorrectly not recognized as green (false negatives) and also less than 1 % were incorrectly classified as green (false positives). 17,954 start-ups founded between 2019 and 2024 12,261 start-ups for which sufficient data is available 2,113 green startups that can be clearly assigned to the green economy * European Commission: Eurostat (2016) 37 Sound estimation of climate mitigation potential with the GHG & Impact Estimator The data presented in this GSR 2025 on the climate protection potential of start-ups was collected using the “GHG & Impact Estimator“ online tool developed by Borderstep and ImpactNexus and is based on the Borderstep Institute‘s impact database. Start-ups use the “GHG & Impact Estimator“ to carry out a scientifically supported self-assessment and estimate the planned climate mitigation contribution of their products and services for the next 5 years. A fair and transparent comparison is made between the start-up solution and a conventional reference product. The GHG & Impact Estimator provides a standardized calculation method with extensive support. The focus is exclusively on the material emission-related differences. No full comparative life cycle analysis (LCA) is carried out, but fundamental LCA approaches and rules are followed. The quantified difference in emissions is then extrapolated with a realistic sales forecast for the start-up to determine an average annual climate mitigation potential over the next five years. This climate mitigation potential reflects the future achievable impact of the start-up if it successfully enters the market. The methodology of the GHG & Impact Estimator is based on international best practices of forward-looking impact assessment, including the Impact Management Project and Project Frame. The expert-based calculation of an average annual climate mitigation potential of 30,000 tons of CO²e for particularly growthand impact-oriented start-ups published here is based on over 15 peer-reviewed assessments. specific CO2e reduction per product / service unit compared to the reference product × = More information on the methodology of the GHG & Impact Estimator can be found in the background paper: Sustainability assessment of start-ups with the ESG Starter and the GHG & Impact Estimator climate mitigation potential planned sales development over the next 5 years Authorship Prof. Dr. Klaus Fichter is Director of the Borderstep Institute for Innovation and Sustainability. He teaches at the Carl von Ossietzky University of Oldenburg, where he holds the professorship for Innovation Management and Sustainability (PIN). He is a member of the executive committee of the FGF Research Network Entrepreneurship, Innovation and SMEs and initiated the „Sustainable Entrepreneurship“ working group. Dr. Thomas Neumann supports the Sustainable Entrepreneurship research area of the Borderstep Institute as a senior researcher. The start-up coach, scientist and lecturer works at the interface of entrepreneurship theory and business practice and has already supervised over 300 start-up projects. His research focuses on the microand macroeconomic impact measurement of start-ups. Prof. Dr. Yasmin Olteanu is Professor of Business Administration / Entrepreneurship at the Berliner Hochschule für Technik (BHT) and Borderstep Research Fellow. From September 2018 to February 2021, she worked as a research associate in the field of Sustainable Entrepreneurship at the Borderstep Institute. Among other things, she was responsible for the development of the Green Startup Report. Tim Grothey is a research associate at the Borderstep Institute. As an industrial engineer, he manages and supports projects in the research field of sustainable entrepreneurship and develops methods for future-oriented impact assessment. In his research work, he is particularly interested in impact-oriented approaches that tackle the challenges of climate change with sustainable innovations. 38 39 The Borderstep Institute for Innovation and Sustainability gGmbH researches the future and examines what is to come (innovation) and what will remain (sustainability). With our scientific work, we analyze problem solutions for a sustainable economy and develop future-oriented action strategies for companies, start-ups, associations, funding institutions and politics. As an independent and non-profit research institution, Borderstep is active in the field of application-oriented innovation and entrepreneurship research and is committed to the guiding principle of sustainable development. Our aim is to generate new problem-oriented knowledge that moves the world! We see ourselves as scientific pioneers of change and want to contribute to a green transformation of economic processes and lifestyles on the basis of excellent research. In doing so, we strengthen and support those pioneers and innovators in society who make sustainability a practical reality. Fabeckstraße 62 14195 Berlin www.borderstep.org Publisher 40 Partner network 41 Sources Page 2 Elsner, M., Atkinson, G., Zahidi, S. (2025). Global Risks Report 2025. Cologne/Geneva: World Economic Forum. Pages 3 & 36 European Commission: Eurostat (2016). Environmental goods and services sector accounts – Practical guide – 2016 edition. Publications Office. Page 11 Fichter, K., Olteanu, Y., Hirschfeld, A., Walk, V., Gilde, J., Grothey, T. & Neumann, T. (2024). Green Startup Monitor 2024. Berlin: Borderstep Institut, Bundesverband Deutsche Startups e. V. Page 14 Neumann, T. (2023) Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation. Journal of Innovation and Entrepreneurship 12, 60. Page 17 Olteanu, Y., & Fichter, K. (2022). Startups as sustainability transformers: A new empirically derived taxonomy and its policy implications. Business Strategy and the Environment, 3, 1–17. Pages 25 – 27 Neumann, T., Widrat, A., Grothey, T. & Fichter, K. (2024). Green Start-up Monitor NRW des Ministeriums für Umwelt, Naturschutz und Verkehr des Landes Nordrhein-Westfalen. Berlin: Borderstep Institut. Pages 28 – 30 Block, J., Benz, L., Krämer-Eis, H., Botsari, A., Lang, F., & Mandys, F. (2024). Climate issues in portfolio investment decisions: a comparison of Private equity and venture capital. Venture Capital, 1-31. Page 37 Grothey, T., Trautwein, C. & Fichter, K. (2024). Nachhaltigkeitsbewertung von Start-ups mit dem “ESG Starter” und “GHG & Impact Estimator”. Methodik & Benchmarking neuer digitaler Bewertungstools. Berlin: Borderstep Institut & ImpactNexus. Imprint Publisher Borderstep Institute for Innovation and Sustainability gGmbH Authorship Prof. Dr. Klaus Fichter, Dr. Thomas Neumann, Prof. Dr. Yasmin Olteanu, Tim Grothey Design Alexander Kruschinski | alexanderkruschinski.de Suggested citation Fichter, K., Neumann, T., Olteanu, Y. & Grothey, T. (2025). Green Startup Report 2025. Berlin: Borderstep Institute. ISBN 978-3-9827665-0-8 Picture credits p. 1 © AdobeStock/Eric Isselée p. 2 Alexander Bonde © Moritz Münch p. 3 Klaus Fichter © Jörg Frank/Borderstep p. 8 © AdobeStock/Deivison p. 16 © unsplash/rawpixel p. 22 © magnific.ai p. 25 © Daniel Fischer // Duisburg Kontor p. 28 © magnific.ai p. 31 © AdobeStock/Johannes p.34 (l) © Fabian Niebauer | Faculty of Natural Sciences LUH (r) © AdobeStock/Feng Yu p. 38 Klaus Fichter, Tim Grothey, Thomas Neumann © Jörg Frank/Borderstep; Yasmin Olteanu © Nadja Scheub