Germany's Blockchain Sector Sees Increase in Funding Despite Global Downturn: Report

Germany's Global Venture Capital Funding Share Reaches All-Time High

Despite a decline in the overall performance of the blockchain market worldwide, Germany has achieved a record high in global venture capital funding share in 2023, according to a report by Crypto Valley Venture Capital (CVVC).

Germany Sees 3% Year-over-Year Increase in Blockchain Funding

The report, titled "The German Blockchain Report 2023," reveals that Germany's blockchain sector received a total of $355 million across 34 deals, representing a 3% year-over-year increase in funding for the country.

Germany's Record Share in Global Funding

Germany also surpassed its previous records in global funding, attracting 2.4% of global blockchain funding and 2.5% of global deals. This marks an increase from 2022 figures of 0.9% in global funding and 1.9% in global deals.

Germany Secures Significant Share of European Blockchain Funding

In addition to its global performance, Germany also obtained a considerable share of funding within Europe's blockchain ecosystem. The report indicates that the country secured 9.4% of Europe-based blockchain funding and 10.3% of all European blockchain deals.

Funding Downturn Across All Continents

The report highlights that Germany's success in funding comes at a time when all continents are experiencing a downturn in venture capital funding. Globally, there has been a 62% decline in funding and a 44% decrease in deals compared to the previous four-quarter period.

Lack of Innovation: Possible Reason for Funding Downturn

According to venture capital executive Tony Cheng of Foresight Ventures, the funding downturn in the crypto space can be attributed to a lack of innovation. Cheng believes that many narratives in the space, such as zero-knowledge proofs, layer-2 solutions, and nonfungible tokens (NFTs), have already "played out," which may be driving venture capital firms away from the sector.