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Germany's blockchain sector saw a total of $355 million in venture capital funding across 34 deals, a 3% year-on-year increase.
Germany has reached an all-time high in global venture capital funding share in 2023 despite a decline in the overall performance of the blockchain market across the globe, according to a report published by Crypto Valley Venture Capital (CVVC).
According to a recent CVVC 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 country, according to the CVVC.
State of German venture capital funding in 2023. Source: CVVC
The report also highlights that Germany experienced its record share in global funding as well. The country reportedly attracted 2.4% of global blockchain funding and 2.5% of global deals. Compared with 2022’s figures of 0.9% in global funding and 1.9% in global deals, the country saw an increase in both statistics in 2023.
When it comes to Europe, Germany has taken a fair share of funding within the region’s blockchain ecosystem. The report notes that the country secured 9.4% of Europe-based blockchain funding and 10.3% of all European blockchain deals.
The report highlights that Germany's progress in funding comes as all continents are experiencing YoY venture capital funding downturns, with a 62% decline in funding and a 44% decrease in deals compared with the previous four-quarter period globally.
Related: Crypto VCs made $2.6B worth of deals in the first quarter of 2023
Meanwhile, Foresight Ventures' Tony Cheng believes the funding downturn is due to the lack of innovation in the space. In a recent Cointelegraph interview, he said that most of the narratives in the space — like zero-knowledge proofs, layer-2 solutions and nonfungible tokens (NFTs) — have already "played out." Cheng believes this may be the reason venture capital firms are being driven away from the space.
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