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).
Within CVVC's 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.
Apart from this, the report highlighted that Germany also experienced its record share in global funding. The country reportedly attracted 2.4% of global blockchain funding and 2.5% of global deals. Compared to 2022's figures of 0.9% in global funding and 1.9% in global deals, the country saw an increase in percentage in both statistic in 2023.
When it comes to Europe, Germany has also taken a fair share of funding within the region's blockchain ecosystem. The report noted that the country secured 9.4% of Europe-based blockchain funding and 10.3% of all European blockchain deals.
The report highlighted that Germany's progress in funding comes as all continents are experiencing a venture capital funding downturn. According to the report, all continents experienced YoY declines in funding. The report highlighted that there's a 62% decline in funding and a 44% decrease in deals compared to the previous four-quarter period globally.
Related: Crypto VCs made $2.6B worth of deals in the first quarter of 2023
Meanwhile, a venture capital executive believes that the funding downturn in crypto is due to the lack of innovation in the space. In a recent Cointelegraph interview, Foresight Ventures' Tony Cheng 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 belives that this may be the reason why venture capital firms are being driven away from the space.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in
