Germany Sets New Record for Venture Capital Funding in 2023 Despite Decline in Global Blockchain Market
Germany has achieved its highest global venture capital funding share in 2023, even as the overall performance of the blockchain market around the world has declined. A recent report published by Crypto Valley Venture Capital (CVVC) titled “The German Blockchain Report 2023” reveals that the country’s blockchain sector saw a total investment of $355 million across 34 deals, representing a 3% year-over-year increase.
The CVVC report also highlights that Germany has reached a new record share in global funding. The country attracted 2.4% of global blockchain funding and 2.5% of global deals in 2023, compared to 0.9% and 1.9% respectively in the previous year.
In terms of Europe, Germany has secured a significant portion of funding within the region’s blockchain ecosystem. The report states that the country received 9.4% of Europe-based blockchain funding and 10.3% of all European blockchain deals.
This success in funding comes as other 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.
Tony Cheng, from Foresight Ventures, believes that the funding downturn is a result of the lack of innovation in the blockchain space. He points out that many of the narratives in the industry, such as zero-knowledge proofs, layer-2 solutions, and nonfungible tokens (NFTs), have already become saturated. This lack of new and exciting developments may be driving venture capital firms away from the blockchain sector.
Despite these challenges, Germany’s blockchain sector continues to thrive and attract significant funding, positioning the country as a leader in the global blockchain landscape.
Source: [CVVC report](https://docsend.com/view/3hxfqrzw25anatcw)
Image Source: [CVVC](https://s3.cointelegraph.com/uploads/2023-09/00343524-679d-4467-bc3f-1625f3cbc826.jpg)
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