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ARTICLE · 09 JULY 2025

Navigating German FDI Rules

A&O Shearman
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Germany's foreign direct investment (FDI) regime has been expanded considerably in recent years, mirroring a global trend towards increased scrutiny of cross-border investments, and particularly...

GermanyGovernment, Public Sector
Dr Stefan Witte
Dr Stefan Witte
Johannes Schmidt
Johannes Schmidt
Udo Herbert Olgemöller
Udo Herbert Olgemöller
Stephan Bühner
Stephan Bühner
Nils Najmann
Nils Najmann
Sarah Weber
Sarah Weber
Author LinkedIn connections

Germany's foreign direct investment (FDI) regime has been expanded considerably in recent years, mirroring a global trend towards increased scrutiny of cross-border investments, and particularly targeting evolving sectors, such as Artificial Intelligence (AI), quantum computing, robotics and semiconductors. For venture capital (VC) investors that are often involved in early-stage investments in both High Tech and Deep Tech start-ups focusing on such advanced and pioneering technologies, navigating these rules is crucial to ensure smooth transactions and avoid regulatory pitfalls.

This overview outlines the key issues, practical considerations, and anticipated developments that VC investors and start-ups should bear in mind.

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