Germany's blockchain funding increases 3% amid market downturn: Report
Germany’s blockchain sector saw a total of $355 million in venture capital funding across 34 deals, a 3% year-on-year increase.
Germany has reached an all-time high in global venture capital funding share in 2023 despite a decline in the overall performance of the blockchain market across the globe, according to a report published by Crypto Valley Venture Capital (CVVC).
According to a recent CVVC report titled “The German Blockchain Report 2023,” the country’s blockchain sector recorded a total of $355 million invested across 34 deals. This represents a 3% year-over-year (YoY) increase in funding for the Western European country, according to the CVVC.
The report also highlights that Germany experienced its record share in global funding as well. The country reportedly attracted 2.4% of global blockchain funding and 2.5% of global deals. Compared with 2022’s figures of 0.9% in global funding and 1.9% in global deals, the country saw an increase in both statistics in 2023.
When it comes to Europe, Germany has taken a fair share of funding within the region’s blockchain ecosystem. The report notes that the country secured 9.4% of Europe-based blockchain funding and 10.3% of all European blockchain deals.
The report highlights that Germany’s progress in funding comes as all continents are experiencing YoY venture capital funding downturns, with a 62% decline in funding and a 44% decrease in deals compared with the previous four-quarter period globally.
Related: Crypto VCs made $2.6B worth of deals in the first quarter of 2023
Meanwhile, Foresight Ventures’ Tony Cheng believes the funding downturn is due to the lack of innovation in the space. In a recent Cointelegraph interview, he said that most of the narratives in the space — like zero-knowledge proofs, layer-2 solutions and nonfungible tokens (NFTs) — have already “played out.” Cheng believes this may be the reason venture capital firms are being driven away from the space.
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