German Blockchain Funding Shows 3% Growth Despite Market Downturn: Report

In a surprising turn of events, Germany has achieved a historic milestone in the realm of global venture capital funding share in 2023, even in the face of an overall downturn in the blockchain market worldwide. The revelation comes courtesy of a report published by Crypto Valley Venture Capital (CVVC).

Titled “The German Blockchain Report 2023,” this comprehensive study sheds light on Germany’s blockchain sector, which witnessed a remarkable $355 million in investments spread across 34 deals. Astonishingly, this figure represents a 3% year-over-year (YoY) increase in funding for the Western European nation, as reported by CVVC.

What’s particularly noteworthy is that Germany also claimed its record share of global funding. The country managed to attract 2.4% of the world’s blockchain funding and 2.5% of global blockchain deals. This marks a significant surge from the figures recorded in 2022, which stood at 0.9% in global funding and 1.9% in global deals.

On the European front, Germany has made a considerable impact on the continent’s blockchain ecosystem. The report highlighted that the nation secured 9.4% of blockchain funding based in Europe and accounted for 10.3% of all European blockchain deals.

Interestingly, Germany’s remarkable funding achievements stand out as a beacon of hope in a landscape where venture capital funding is on the decline across all continents. According to the CVVC report, every continent experienced year-over-year declines in funding. Globally, there has been a substantial 62% reduction in funding and a 44% decrease in deals compared to the previous four-quarter period.

Meanwhile, a prominent venture capital executive has shared insights into the reasons behind this funding downturn in the crypto space. In a recent interview, Tony Cheng of Foresight Ventures pointed to a perceived lack of innovation as a contributing factor. Cheng suggested that many of the prevailing narratives in the crypto sphere, such as zero-knowledge proofs, layer-2 solutions, and nonfungible tokens (NFTs), have already played out to a certain extent. This may be one of the driving forces behind venture capital firms’ reduced enthusiasm for the space.

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