German Robotics Startup Coboworx Files for Insolvency Amid Investment Challenges

Coboworx, a German robotics startup founded in 2019, has filed for insolvency despite showing increasing revenues and raising over 11 million euros in capital last year. The Salmtal-based company, which specializes in automation solutions for small and medium-sized enterprises, struggled to achieve profitability, relying heavily on external funding to sustain operations. According to insolvency administrator Ingo Grünewald, the primary cause of the financial difficulties was the cautious stance of investors amidst the current economic climate, particularly the withdrawal of initial support from U.S. investors.

Christoph Stresing of the Startup Association emphasized that many German startups like Coboworx depend substantially on foreign investment due to insufficient domestic capital, which creates risks for sustaining innovation within the ecosystem. Grünewald is currently seeking new investors to rescue Coboworx and secure over 30 jobs at risk.

The German startup scene overall has shown growth, with 2,766 new startups established in 2024 — an 11% increase compared to 2023 — and plans underway to establish more than ten "startup factories" to foster development. Meanwhile, regions like Saxony-Anhalt face a declining interest in entrepreneurship, raising concerns about future business growth.

Coboworx’s insolvency highlights the fragility of startups in Germany's evolving but still vulnerable innovation ecosystem, underscoring the critical need for stable investment channels to ensure long-term viability and job preservation.