According to Cointelegraph, Germany has achieved a record share in global venture capital funding for its blockchain sector in 2023, despite a decline in the overall performance of the blockchain market worldwide. A report by Crypto Valley Venture Capital (CVVC) revealed that the country's blockchain sector received a total of $355 million across 34 deals, representing a 3% year-over-year increase in funding.
Germany also experienced its highest share in global funding, attracting 2.4% of global blockchain funding and 2.5% of global deals. These figures show an increase compared to 2022's 0.9% in global funding and 1.9% in global deals. In Europe, Germany secured 9.4% of blockchain funding and 10.3% of all European blockchain deals.
The report noted that Germany's progress in funding occurred as all continents experienced a downturn in venture capital funding. All continents saw year-over-year declines in funding, with a 62% decrease in funding and a 44% drop in deals compared to the previous four-quarter period globally. A venture capital executive, Foresight Ventures' Tony Cheng, suggested that the funding downturn in crypto might be due to a lack of innovation in the space, as most narratives like zero-knowledge proofs, layer-2 solutions, and nonfungible tokens have already 'played out.'