According to a report released by Crypto Valley Venture Capital (CVVC), despite a decline in the overall performance of the global blockchain market, Germany’s share of global venture capital financing in 2023 still hit a record high.
In the CVVC report, titled “Germany Blockchain Report 2023” The country’s blockchain industry recorded The 34 transactions totaled $355 million invested. According to CVVC, this represents a 3% year-on-year increase in funding in Western European countries.
In addition to this, the report also highlights that Germany’s share of global financing has also reached a record high. The country reportedly attracted 2.4% of global blockchain funding and 2.5% of global transactions. Compared to 2022 figures of 0.9% of global funding and 1.9% of global deals, the country’s percentage in both statistics increased in 2023.
On the European side, Germany has also received its fair share of funding in the region’s blockchain ecosystem. The report states that the country received 9.4% of European blockchain funding and 10.3% of total European blockchain transaction volume.
The report highlights that Germany’s progress in financing comes at a time when all continents are experiencing a downturn in venture capital funding. The report said that all continents experienced year-on-year declines in financing volume. The report highlights that global funding volumes fell by 62% and deal volume by 44% compared to the previous four quarters.
related: Cryptocurrency VCs closed $2.6B worth of deals in Q1 2023
Meanwhile, one venture capital executive believes the slump in funding in the cryptocurrency space is due to a lack of innovation in the space. In a recent interview with Cointelegraph, Foresight Ventures’ Tony Cheng said that most of the narratives in the space such as zero-knowledge proofs, layer 2 solutions, and non-fungible tokens (NFTs) are already “played out.” Cheng believes this may be why venture capital firms are being driven out of the field.
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