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Over 25 Million-Euro Startup Bankruptcies: A 2025 Overview

Wed, Jan 21, 26
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2025 witnessed numerous high-profile German startup failures across multiple sectors. Lilium, the flying taxi developer, experienced a dramatic collapse. Additionally, Element, an InsurTech company, and several GreenTech ventures encountered significant difficulties.

2025 marked a challenging year for German startups, with over 25 million-euro companies filing for bankruptcy across diverse sectors. Lilium, a prominent flying taxi developer, failed twice in February despite previously raising approximately €1.5 billion.

Element, an InsurTech platform, collapsed in January after securing €150 million in funding, reportedly due to a major reinsurer withdrawing support. Zolar, a GreenTech company that generated €86 million in revenue during 2023, exited its consumer segment following significant historical investments of around €135 million.

CustomCells, a battery technology firm backed by Porsche Ventures with €60 million invested, collapsed in May, largely attributable to Lilium's insolvency. Additional notable failures included HPS, Evum Motors, Idagio, Kenbi, German Bionic, and RightNow.

Common factors contributing to these bankruptcies included macroeconomic difficulties, insufficient financing, challenging market conditions, elevated operational costs, and diminished investor confidence.

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Comprehension Quiz
Question 1 of 30 Correct
What was the primary reason Element collapsed in January 2025?
Insufficient market demand
A major reinsurer withdrew support
Lilium's bankruptcy
High operational costs
Select an answer above

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