German Innovation Surge: Dash0 Reaches Billion-Euro Valuation and Fraunhofer ITWM Launches VTT Spin-off

Two significant developments highlight Germany’s vibrant landscape in innovative business start-ups and spin-offs in 2026. Mirko Novakovic’s software company, Dash0, founded in the summer of 2023 in the USA but with strong roots in Solingen, Germany, has impressively achieved a valuation of one billion euros, earning 'unicorn' status within a remarkably short timeframe. Novakovic emphasizes that despite its American beginnings, Dash0 is very much a homegrown enterprise. He also outlined ambitious goals for the company, signaling a robust future ahead.

Meanwhile, Fraunhofer ITWM has taken a strategic step to advance the industrial application of its research by establishing a new company, VTT – Virtual Tire Technologies GmbH, in February 2026. The spin-off focuses on supplying and further developing CDTire, a tire modeling software that has become an industry standard among leading vehicle and tire manufacturers. CDTire enables realistic simulations of tire behavior, including thermal effects and dynamic air interactions, thus significantly minimizing costly physical prototype testing and speeding up vehicle development processes. Dr. Manfred Bäcker, who has contributed extensively to CDTire and now leads VTT, explained that the international demand and need for customization warranted the independent company’s establishment. Fraunhofer ITWM will maintain close collaboration with VTT and sustain foundational research efforts.

Dr. Klaus Dreßler noted that CDTire facilitates the bridging of tire and automotive industries, allowing real-time virtual prototype testing that enhances comfort, dynamics, and durability assessments before manufacture. Located at the Business + Innovation Center in Kaiserslautern near Fraunhofer ITWM, VTT exemplifies Germany's commitment to fostering innovation and economic competitiveness through transferring cutting-edge research into viable commercial ventures.