Blockchain funding in Germany rises 3% amid market slowdown

Germany’s blockchain sector recorded a total of $355 million in venture capital funding across 34 deals, representing a 3% increase compared to the previous year.

Germany hit an all-time high in global venture capital funding participation in 2023, despite a decline in overall blockchain market performance worldwide, according to a report published by Crypto Valley Venture Capital (CVVC).

In the CVVC report titled “German Blockchain Report 2023,” the country’s blockchain sector recorded a total of $355 million invested in 34 companies. This represents a 3% year-on-year (y-o-y) increase in funding for the Western European country, according to CVVC.

Furthermore, the report highlighted that Germany also recorded its record share in global financing. The country reportedly attracted 2.4% of global blockchain funding and 2.5% of global deals. Compared to 2022 figures of 0.9% in global finance and 1.9% in global deals, the country saw a percentage increase in both statistics in 2023.

As far as Europe is concerned, Germany has also received a good portion of the region’s blockchain ecosystem funding. The report noted that the country secured 9.4% of European-based blockchain funding and 10.3% of all European blockchain deals.

The report highlights that Germany’s progress in funding comes at a time when all continents are experiencing a downturn in venture capital funding. According to the report, all continents recorded annual declines in funding. The report highlighted that there is a 62% decrease in financing and a 44% decrease in deals compared to the previous four-quarter period globally.

Meanwhile, one venture capital executive believes the decline in crypto funding is due to a lack of innovation in the sector. In a recent interview with Cointelegraph, Tony Cheng of Foresight Ventures said that most narratives in the space, such as zero-knowledge proofs, layer 2 solutions, and non-fungible tokens (NFTs), have already been “developed” . Cheng believes this could be the reason why venture capital firms are being pushed out of the space.