Germany Tops Global Blockchain Funding in 2023

Germany Tops Global Blockchain Funding in 2023

Germany Tops Global Blockchain Funding in 2023

Germany’s share of global venture capital funding attained an all-time high in 2023, despite a decline in the global performance of the blockchain market, according to a report by Crypto Valley Venture Capital (CVVC).

In the report titled “The German Blockchain Report 2023” by CVVC, a total of $355 million was invested in 34 blockchain-related transactions in Germany. According to the CVVC, this signifies a 3% YoY increase in funding for the Western European country.

In addition, the report noted that Germany’s share of global funding reached a record high. According to reports, the nation attracted 2.4% of global blockchain funding and 2.5% of global transactions.

Germany Tops Global Blockchain Funding in 2023
State of German venture capital funding in 2023. Source: CVVC

In 2023, the country’s percentage of global funding increased to 0.9% from 0.9% in 2022, and its percentage of global transactions increased to 1.9% from 1.9%. In Europe, Germany has also received a significant amount of funding for the region’s blockchain ecosystem.

The country secured 9.4% of European blockchain funding and 10.3% of all European blockchain transactions, according to the report. The report highlighted Germany’s advancements in financing at a time when all continents were experiencing a decline in venture capital funding.

According to the report, funding on all continents decreased year over year. The report revealed a 62% decline in funding and a 44% decline in transactions worldwide compared to the previous four-quarter period.

A venture capitalist believes that the paucity of innovation in the crypto space is responsible for the decline in funding.

Tony Cheng of Foresight Ventures stated in a recent interview that most narratives in the space, such as zero-knowledge proofs, layer-2 solutions, and nonfungible tokens (NFTs), have “played out.”

Cheng believes that this is the reason why venture capital firms are leaving the industry.

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