Germany’s industrial heartland, the renowned Mittelstand, is experiencing a profound transformation. A significant wave of foreign capital is reshaping the economic landscape, signaling a pivotal shift in the nature of international investment. This influx is moving beyond traditional manufacturing and heavy industry, now targeting dynamic sectors like technology, software, and digital services, reflecting a broader global trend towards innovation-driven growth.
This evolving environment presents both immense opportunities and complex challenges. For foreign investors, identifying the right targets in a diverse market is difficult, while German businesses must navigate the intricacies of cross-border mergers and acquisitions. In this high-stakes climate, access to accurate, detailed, and reliable company data is no longer an advantage but a necessity. To understand these trends better, we spoke with Daan Wolff, Founder and CEO of Companydata.com, a firm at the forefront of providing the business intelligence needed to navigate this new era.
Q: Your recent article highlights a surge in foreign investment in Germany. What are the primary forces driving this increased interest in the German Mittelstand?
Daan Wolff: Foreign investment is growing because Germany is viewed as Europe’s industrial and economic anchor. Our data shows foreign-owned companies in Germany expanded from about 20,600 in 2015 to more than 145,000 in 2025, a six-fold increase. This reflects Germany’s stability, skilled workforce, and central role in Europe’s single market. Investors also see Germany as a platform to access the EU post-Brexit and as a hub for advanced manufacturing and digital infrastructure.
Q: You mention a shift in focus from traditional industry to technology. What specific sectors are attracting the most foreign capital, and how has the profile of the typical investor changed?
Daan Wolff: The largest foreign-owned sectors remain holding companies, real estate, and management services. But we also see rapid growth in engineering services, IT, and software. In parallel, U.S. tech firms like Microsoft and Amazon are investing billions into AI, cloud, and sovereign digital infrastructure. Traditional investors from Luxembourg and England still lead in company counts, but we also track growing activity from China and the U.S., with investment increasingly targeting technology and services rather than only heavy industry.
Q: What are the biggest challenges that both foreign investors and German companies face when engaging in cross-border M&A, and where do data gaps often appear?
Daan Wolff: The challenge is twofold: identifying the right acquisition targets and understanding their ownership structures. German Mittelstand companies are often privately held, with complex hierarchies and cross-border ties that are not always visible in public records. Data gaps typically appear around beneficial ownership, subsidiaries, and minority stakes. Without clarity, investors risk misjudging the scale, liabilities, or true decision-makers in a target company.
Q: How does Companydata.com specifically address these challenges? Could you provide an example of how your data helps a client make a more informed investment decision?
Daan Wolff: Our platform builds company hierarchies from official registers such as the Unternehmensregister and Handelsregister, and connects them with global sources. This makes it possible to map parent-subsidiary relationships across borders with precision.
We’ve seen cases where investors chase the wrong opportunities because ownership is unclear. For example, a U.S. customer once spent weeks developing a relationship with Navistar, without realizing it is part of Traton, which in turn is owned by Volkswagen Group. That path was never going to be straightforward. Having reliable hierarchy data up front avoids this kind of misstep. In another case, a client used our platform to identify that a mid-sized German logistics firm was ultimately owned by a Chinese parent company. That knowledge changed their approach entirely.
By providing this clarity, we help investors avoid wasted effort, reduce risk, and ensure compliance with disclosure rules and due dilligence.
Q: Looking ahead, what is your outlook on the future of foreign investment in Germany, and what role will data analytics play in shaping these upcoming trends?
Daan Wolff: We expect foreign investment to continue rising, particularly in technology, renewable energy, and digital infrastructure. Germany’s Mittelstand will remain attractive because it combines deep expertise with global market access. Data analytics will be decisive in this environment. Investors will increasingly rely on AI and machine learning to predict which companies are ready for investment and to identify opportunities earlier and with greater precision. CompanyData.com data serves as the foundation for these models, ensuring that insights are based on structured and verifiable facts rather than assumptions. This makes it possible to evaluate not only financials but also ownership chains, sectoral shifts, and regulatory risks, all in one framework. We make this accessible through our Company Database.
We expect foreign investment to continue rising, particularly in technology, renewable energy, and digital infrastructure. Germany’s Mittelstand will remain attractive because it combines deep expertise with global market access. Data analytics will be decisive in this environment. Investors need to evaluate not only financials but also ownership chains, sectoral shifts, and regulatory risks. Our role is to provide that structured, verifiable foundation so decisions are based on facts rather than assumptions, something we make accessible through our Company Database.
The conversation with Daan Wolff makes it clear that the infusion of foreign capital is acting as a catalyst for modernization within Germany’s industrial core. This is not merely a financial trend but a structural evolution, pushing traditional businesses to innovate and adapt. The success of these ventures, for both the investor and the acquired company, hinges on a deep and accurate understanding of the market, which is only achievable through robust data.
As global economic lines continue to blur, the ability to access and interpret complex company information will be the definitive factor separating successful investments from failed ones. Platforms that provide this clarity are essential tools for modern strategic decision-making. They empower businesses to mitigate risk, identify genuine opportunities, and confidently navigate the increasingly interconnected global marketplace.
To learn more, visit www.companydata.com.
