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Germany achieved an all-time high in its share of global venture capital funding in 2023, despite a decline in the overall performance of the blockchain market worldwide, according to a report published by Crypto Valley Venture Capital (CVVC).
In the report titled “The German Blockchain Report 2023,” the country’s blockchain sector recorded a total of $355 million invested across 34 deals. This represents a 3% year-over-year (YoY) increase in funding for the Western European nation, according to CVVC.
State of German venture capital funding in 2023. Source: CVVC
Additionally, the report highlighted that Germany also recorded its highest share in global funding. The country attracted 2.4% of global blockchain funding and 2.5% of global deals. This marks an increase in percentage for both metrics compared to 2022, when the figures were 0.9% in global funding and 1.9% in global deals.
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Within Europe, Germany also secured a significant portion of funding within the region’s blockchain ecosystem. The report noted that the country captured 9.4% of Europe-based blockchain funding and 10.3% of all European blockchain deals.
The report emphasized that Germany’s progress in funding occurred while all continents experienced a downturn in venture capital. According to the data, every continent saw YoY declines in funding. Globally, there was a 62% decline in funding and a 44% decrease in deals compared to the previous four-quarter period.
Related: Crypto VCs Executed $2.6B Worth of Deals in the First Quarter of 2023
Meanwhile, a venture capital executive suggested that the funding downturn in crypto is due to a lack of innovation in the sector. In a recent interview with Cointelegraph, Foresight Ventures’ Tony Cheng stated that most narratives in the space, such as zero-knowledge proofs, layer-2 solutions, and non-fungible tokens (NFTs), have already “played out.” Cheng believes this may be driving venture capital firms away from the space.
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