CV VC German Blockchain Report 2023

THE GERMAN BLOCKCHAIN REPORT 2023
Q3 ‘22 - Q2 ‘23
2 CV VC GERMAN BLOCKCHAIN REPORT 2023
Contents
01 INTRODUCTION
Introduction ------------------------------------------------------------------------------------------------------------------- 4
Data Management, Verification, & Analysis ---------------------------------------------------------------------- 43
DeFi ----------------------------------------------------------------------------------------------------------------------------- 46
Health--------------------------------------------------------------------------------------------------------------------------- 49
Editorial ------------------------------------------------------------------------------------------------------------------------- 5
Infrastructure & Developer Tools ------------------------------------------------------------------------------------ 50
Foreword by Editor in Chief of BTC-ECHO -------------------------------------------------------------------------- 7
Gaming, NFTs, & Metaverse -------------------------------------------------------------------------------------------- 52
02 RESEARCH METHODOLOGY
Research Methodology ---------------------------------------------------------------------------------------------------- 9 06 REGULATIONS Regulations by Dr. Nina-Luisa Siedler, Partner, Möhrle Happ Luther----------------------------------- 59
03 EXECUTIVE SUMMARY
Executive Summary ------------------------------------------------------------------------------------------------------- 11 07 REPORT CONCLUSION
Conclusion ------------------------------------------------------------------------------------------------------------------- 66
04 VENTURE FUNDING OVERVIEW

The State of Venture Funding in Germany ------------------------------------------------------------------------ 14 08 CV VC INSIGHTS
CV VC Portfolio -------------------------------------------------------------------------------------------------------------- 68
Venture Funding - A Snapshot ---------------------------------------------------------------------------------------- 14
Previous Reports ----------------------------------------------------------------------------------------------------------- 72
i. Global Venture Funding -------------------------------------------------------------------------------------------- 14
About --------------------------------------------------------------------------------------------------------------------------- 73
ii. Global Venture Median Deal Sizes ---------------------------------------------------------------------------- 16
iii. Global Venture Average Deal Sizes---------------------------------------------------------------------------- 17
iv. Global Venture Mega Deals ------------------------------------------------------------------------------------- 17
v. Global Unicorns ------------------------------------------------------------------------------------------------------ 19
Blockchain Venture Funding - A Snapshot ------------------------------------------------------------------------ 20
EXPERT ARTICLES
i. European Blockchain Venture Funding ---------------------------------------------------------------------- 22
Li.Fi - Multi-Chain & Blockchain Interoperability Status Quo---------------------------------------------------------------- 36
ii. German Blockchain Venture Funding ------------------------------------------------------------------------ 23
ScoreChain - The Future of Money and The Power of Blockchain Analytics ------------------------------------------- 38
1. Blockchain Funding by Round Type ----------------------------------------------------------------------- 29
Stabble - From Niche to Mainstream: Tackling DeFi’s Obstacles in the Race Against Centralized
2. Blockchain Funding by State --------------------------------------------------------------------------------- 31
Exchanges ------------------------------------------------------------------------------------------------------------------------------------ 54
3. Blockchain Funding by Industries -------------------------------------------------------------------------- 32
Berlin Partner - Berlin’s Blockchain & Web3 Ecosystem ---------------------------------------------------------------------- 55
iii. German Blockchain Investor Watchlist --------------------------------------------------------------------- 34
Lukso - LUKSO: The Blockchain for the New Creative Economies -------------------------------------------------------- 56
BerChain - Unveiling the Dynamic Landscape of Germany’s Blockchain Ecosystem in 2023 ------------------- 57
Hedera - Closing the knowledge gap is the key to Germany realizing its blockchain potential ----------------- 62
Blockmagazin - CV Labs and the Evolving Role of Accelerators in Blockchain----------------------------------------- 63
05 GERMAN BLOCKCHAIN INDUSTRY AND COMPANY

OVERVIEW
German Blockchain Industry and Company Overview ------------------------------------------------------- 40
Blockchain Networks ----------------------------------------------------------------------------------------------------- 41
Custody & Exchanges ---------------------------------------------------------------------------------------------------- 42
01
INTRODUCTION
4 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 01. INTRODUCTION
Report Introduction
The German Blockchain Report is an exploration of the burgeoning blockchain startup landscape Europe reached its highest-ever share of global blockchain venture funding, soaring to 26%,
in Germany. It specifically analyzes venture funding activity across a 12-month period from Q3 a significant increase from the previous 18%. Within this context, Germany’s performance is
2022 to Q2 2023 for Germany and compares such data to Global and Greater-European venture particularly noteworthy. The country secured 9.4% of the funding share and participated in
funding. The data combined and presented in this report provides a credible overview of the 10.3% of the deals between Q2’22 and Q3’23. These figures indicate a substantial improvement
German Blockchain Startup Ecosystem and its funding patterns over time. over the prior year’s 4.9% funding and 8.5% of deals, underscoring Germany’s prominence
within the European blockchain landscape.
The primary objective of this report is to furnish a synopsis of key funding metrics throughout
the blockchain technology industry in Germany, with a particular focus on funding dynamics Germany’s blockchain ecosystem is remarkable for its evolution, advancements, and unique
and industry stakeholders. This examination emphasizes how the technology is significant position as a leading hub for technological innovation in Europe. The country’s strong emphasis
across a diverse array of sectors, reflecting Germany’s core positioning as a leader in the global on research, development, and implementation of cutting-edge technologies like blockchain
blockchain landscape. sets it apart. The report highlights Germany’s commitment to fostering a supportive regulatory
environment and encouraging cross-sector collaboration, laying the foundation for a robust
The report first delves into sector-agnostic funding metrics to provide context to the later
and sustainable blockchain ecosystem that contributes to economic growth and technological
figures that relate specifically to blockchain-specific venture funding across the regions of study.
leadership.
Regions that were specifically covered are Global, European, and of course, Germany. Additional
global regions were included in the analysis, and trends were highlighted, though they were not Investors, businesses, and policymakers alike are encouraged to leverage the insights provided
specifically summarized in the same way as the aforementioned regions. in this report to foster continued collaboration and innovation within the German blockchain
ecosystem.
The German blockchain sector has demonstrated remarkable resilience, as evidenced by a 3%
year-over-year (YoY) increase in funding to $335 million across 34 deals. What makes this all the
more impressive is that this growth occurred even as all the greater global regions experienced
downturns. Even the global sector agnostic average was down by well over 50%.
In a German context, Berlin emerges as the undisputed leader in Germany’s blockchain story,
consistently topping the other cities by both its number of deals as well as by percentage of
funding in the nation. In our period of analysis, Berlin accounted for an impressive 21 deals -
61.8% of the country’s total - and a staggering 93% of the total funding, amounting to $330.3m.
This dominance is not a recent phenomenon; the previous year’s data further showcases Berlin’s
leadership, with 57.4% of the deals and 86.1% of the funding. The city’s consistent performance
underscores its pivotal role as the epicenter of blockchain innovation and investment in
Germany.
Editorial
NAVIGATING GERMANY’S THRIVING BLOCKCHAIN LANDSCAPE: INSIGHTS FROM CV LABS BERLIN
This second edition of the German Blockchain Report takes nuanced perspectives on the numbers. Germany can pave the way for deeper collaboration
its rightful place in our annual CV VC Insights series, serving between its robust financial sector and the cutting-edge
as a beacon illuminating the path of Web3, which leverages Empowered by an ecosystem nurturing innovation, world of blockchain technology, to enhance processes,
blockchain technology as its foundational rail. With a focus Germany’s blockchain industry has matured in its increase transparency, and drive innovation. The symbiotic
on key trends, investment opportunities, and regulatory applications and diversified across sectors. The Company fusion of these forces could unleash an unprecedented wave
developments, this report serves as a valuable resource for Overview chapter delves into these shifts, introducing of fortune and fortitude, driving one of the world’s leading
all stakeholders seeking to understand and navigate the pioneering entities that have dared to reimagine traditional economies to unparalleled heights.
German blockchain ecosystem within a global context. sectors and beyond. Berlin emerges as a vibrant nucleus – a
testament to an ecosystem fueled by courage, opportunity, A major highlight of this report lies in the continued surge
The global blockchain ecosystem has woven itself into a and a willingness to embrace uncharted territories. of blockchain startups and investments in Germany. Despite
transformative force, rewriting the playbook for confronting challenges posed by global and economic uncertainties,
the world’s most pressing challenges. As a key hub in the The report addresses Germany’s regulatory landscape. the German blockchain industry demonstrates resilience
global blockchain ecosystem, Germany embodies ingenuity, Markets in Crypto-Assets Regulation (MiCAR) establishes a and long-term growth potential. The report spotlights key
determination, and progress. This report undertakes a comprehensive regulatory and supervisory framework for funding rounds and emerging players, highlighting the
mission to explore Germany’s blockchain landscape, with an previously unregulated cryptoassets in the European Union robust entrepreneurial spirit within the German blockchain
acute focus on venture funding dynamics. (EU). The adoption of MiCAR marks the end of a successful sphere.
legislative process that will now add a new chapter to the EU’s
Amidst the fluctuations in global venture funding, the single rulebook, replacing a patchwork of individual member At this point, we would like to share an internal reflection
blockchain sector has not remained immune. Yet, Germany states’ national frameworks for regulating crypto assets. with you. CV Labs has seen exciting trends during the last
stands out as a pillar of resilience and growth in this domain, MiCAR emerges as a potential cornerstone for Germany’s year, especially during the application process for our 5th
defying the global downturn to reinforce its standing in the digital asset-focused companies. This regulation stands Accelerator Batch. The applying startups are already much
European and global blockchain funding arena. Against a poised to level the playing field for digital asset enterprises, more advanced in the business model and in the MVP
backdrop of declining global blockchain funding, Germany fostering clarity for investors and stakeholders. Furthermore, consideration and also the funding ratings have leveled up to
emerges as a solitary luminary, registering a YoY increase in collaborations between industry players and German a more comprehensible level. We see this as a contributing
blockchain funding by an impressive 3%. What makes this all regulatory organizations, such as the Federal Financial factor to the increase in funding capital despite the tense
the more significant is that this growth occurred even as the Supervisory Authority (BaFin), are essential for creating an overall economic market situation.
global blockchain average was down by 62%. encouraging regulatory climate. These collaborations can
The past year has seen a remarkable wave of dedicated
help establish guidelines, foster innovation, and build trust
However, these Blockchain funding figures narrate a initiatives in the German blockchain landscape, determined
in the blockchain ecosystem. As various industries explore
story beyond statistics; they articulate strengths, strategic to raise the visibility of blockchain interests. These efforts
the transformative capabilities of blockchain, regulators are
orientations, and unwavering commitments to high-impact manifest themselves in various strategies that include
keen on striking the right balance between innovation and
sectors like blockchain networks and decentralized finance. conferences, networking meetings, educational activities,
ensuring consumer protection. By advancing regulations,
The report offers insights from local observations, offering and relentless engagement with stakeholders across the
spectrum, with a notable focus on policy stakeholders. along with our hubs in Liechtenstein, Africa, Portugal,
and here in Germany, serve as a nexus of collaboration.
The stage is set with notable events like the Berlin With immense pride, CV VC and CV Labs Berlin present
Blockchain Week and the outstanding achievements of the the second edition of the German Blockchain Report, a
nonprofit blockchain associations, including, amongst many testament to the dynamism that courses through the
others - Bundesblock, BerChain, and Hanseatic Blockchain veins of the German blockchain ecosystem. We invite all
Association. Their tireless efforts form the backbone stakeholders – entrepreneurs, investors, policymakers, and
of growth and collaboration across the entire industry, enthusiasts – to join us in celebrating the achievements
nurturing a fertile ground for innovation to flourish. during the current challenging market conditions. Together,
we can seize the opportunities presented by blockchain
Education is widely considered to be a cornerstone for
technology and drive sustainable economic growth, both
the development of any industry, including blockchain. In
within Germany and on a global scale.
Germany, a diverse range of stakeholders, such as academic
institutions (Code University, TU Munich, HTW, Frankfurt Our heartfelt gratitude extends to all industry stakeholders
School of Finance), governmental organizations, and private and contributors whose expertise and passion have brought
sector companies (including the big4), often join together this German Blockchain Report to life.
to create a comprehensive educational framework and
create supportive structures for startups. The goal of this
collaborative effort is generally to foster a diverse skill set
and knowledge base, which extends beyond conventional
academic pathways to include modern, industry-specific
initiatives.
At the intersection of regional blockchain expertise stands

CV Labs Berlin, a firm supporter of blockchain startups,
nurturing their growth. Through interactions with startups,
we have gleaned invaluable insights into the challenges and Ulrike Lierow-Schad Olaf Hannemann Dr. Philipp Roesler
Managing Director, Co-Founder, CIO, Board Member,
triumphs characterizing the German market.
CV Labs Berlin CV VC CV VC
CV VC, in partnership with its international ecosystem

accelerator, CV Labs, stands as a faithful supporter of
blockchain and those tirelessly dedicated to harnessing
the true utility of this transformative technology. With
unwavering commitment, CV VC is actively committed
to shaping the future alongside blockchain pioneers
in Germany, marked by 5 strategic investments in the
country’s emerging startup landscape. Our headquarters,
situated in the heart of Crypto Valley, Zug, Switzerland,
Foreword
Keeping a cool head even in chaos: Consistency is essential in Is that why we are in a crypto crisis? Probably not. After all, there is emotionally charged, a new regulatory framework has emerged
hard times; successful investors, especially venture capitalists, no single crypto sector, just as there isn’t a singular cryptocurrency. for the European Union: the Market in Crypto Asset Regulation or
know this too well. It is this consistency that venture capitalist The blockchain sector has also become more differentiated over MICAR. Its standards are high, and the hurdles for crypto startups
CV VC and accelerator and blockchain ecosystem supporter CV the past few months. In addition, the report compellingly illustrates are equally as high. As critical as one can be of this aspect, one
Labs demonstrate. With their staying power, they are defying how individual regions across the globe have evolved in distinct must not forget the sector receives planning security in return.
the difficult macroeconomic environment and the so-called bear ways. Although less noticed by the general public, significant Investors backing projects from the EU can be confident that they
market in the crypto sector. This makes their second German advancements have been made in recent months. For example, won’t encounter the regulatory landscape commonly referred to
Blockchain Report all the more relevant, as it helps to get a rational the adoption of stablecoins and Layer2 blockchains has reached as “American conditions.”
picture of the industry - to know what is really going on in order to an entirely new level compared to just a year ago,
As Europe’s largest economy, Germany has distinguished itself as
have a fundamental basis for decision-making.
To speak of a crisis at this high pace of further development a hub for blockchain in recent months. This sets the stage for the
In doing so, their report is not about gut feeling but the numbers, seems rather presumptuous. Especially since Bitcoin and other country’s blockchain sector, which has shown incredible resilience,
data, and facts about the blockchain industry. This is particularly cryptocurrencies have rallied since the beginning of the year. as highlighted by the CV VC German Blockchain Report. Unlike
true with regard to the funding and deals of blockchain startups They have also proven their strength in the interim banking crisis other global regions that experienced downturns, Germany saw
- globally, across Europe, and in Germany. The report, with surrounding Silicon Valley Bank or Credit Suisse. And that’s what a 3% year-over-year (YoY) increase in funding, amounting to $335
its emphasis on Germany, highlights the key companies and it’s all about - proving strength in a crisis. million across 34 deals. The global average blockchain funding
protocols that are notably advancing innovation within the sector decline of 62% further emphasizes this remarkable growth. The
Decentralized systems are particularly good at this because, unlike
in the nation. diversity of sectors and applications within the German blockchain
centralized ones, they can adapt quickly. The blockchain sector is
ecosystem further underscores this resilience.
While rising key interest rates are leading to an increasingly difficult also going through this adaptation. Blockchain startups, like their
financing environment for startups, reliable partners are especially venture capitalists, have made sometimes painful cuts in recent Accordingly, it seems that CV Labs made a wise choice by opening
important now. High valuations, which were still common in 2021, months to focus more than ever on commercial product maturity. its Berlin location last November. Not only does Germany attract
have been revised downward significantly. Securing funding Seeing this and observing it on the basis of tangible progress is smart, creative, and open-minded people with its capital city,
has become increasingly challenging for most startups, with the cause for optimism. but Germany also has a strong industry with so-called hidden
notable exception of those specializing in artificial intelligence. champions spread all over the country. Thanks to CV VC and
The degree of variation within the blockchain sector, previously
CV Labs, the chances are good that the next “champions” of the
As the CV VC German Blockchain Report figures show, this is noted, becomes particularly evident in the dominant issue of
Web3 economy will also emerge in Germany. In this sense, keep
hitting the blockchain sector particularly hard. While between regulation. Recent months have underscored that the regulatory
up the good work; the crypto and broader
Q3’22 and Q2’23, global funding for startups fell by 50 percent landscape plays a pivotal role in shaping investor sentiment more
blockchain ecosystem will thank you. Cheers to
across all sectors, the blockchain sector has been hit exceptionally than ever.
a decentralized future!
hard, with a 62 percent drop. The same picture is seen for deals.
While a lack of regulatory clarity in the U.S. has led to chaotic
While the volume has declined by 32 percent across industries,
conditions and a wildly flailing U.S. securities regulator, the
the blockchain sector has seen 44 percent fewer deals than in the Sven Wagenknecht
SEC, Europe has taken a different path. Less aggressive and Editor-in-Chief, BTC-ECHO
previous year.
Powered by BTC-ECHO www.btc-echo.de/

02
RESEARCH
METHODOLOGY
9 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 02. RESEARCH METHODOLOGY
Research Methodology
1. REPORT INTENTION rounds, the undisclosed rounds have been headquartered in Germany, and
omitted from the total figure. 2. Has raised such a round between 01 Jul 2022 and 30 Jun
This is the second edition of an annual report studying the c. All stages, and 2023.
blockchain landscape in Germany, providing insights into industry d. Private funding, and ii. Unicorn valuations are based on the global unicorn data
developments, and venture funding and deal flows within the e. Equity funding and funding in the form of convertible reported by CB Insights on an ongoing basis.
region. We aim to provide a high-level comparative synopsis to notes from traditional financiers, and *We take note of Worldcoin, which raised a funding round gaining
gain macro insights over time, by comparing blockchain-specific f. Equity funding by Accelerators has been included them unicorn status within the time period. Worldcoin however, has
venture funding to relevant sector-agnostic venture funding data
ii. Exclusion been removed from the data set due to no longer being headquartered
globally and across greater Europe.
1. Company types: in Germany.
2. FUNDING DATA a. Publicly-traded businesses that trade on recognized

3. GLOBAL CONTEXT AND FIGURES
securities exchanges (including Pink Sheets), and
We have focused on a data set of 31 blockchain startups that have 2. Funding types: a. All financial figures in this report are portrayed in USD unless
raised funding from the start of Q3 2022 through Q2 2023. We
a. Debt (excepting convertible notes) otherwise specified. All amounts have been rounded to
have used various sources of data to compile this report, including,
b. Contingent funding. Where an amount of funding maintain context when compared to the other figures in a
public and paid databases, research reports, LinkedIn profiles,
is promised contingent on the fulfillment of certain specific data set.
reputable news outlets, government filings, press releases,
milestones, but the business has only received a portion
investors, and entrepreneurs. The report criteria are as follows: b. Funding data is often reported well after the fact. Therefore,
of such funds, the amount not received as yet has not
funding data reported in earlier installments is subject to
been included.
a. Venture Funding Overview revision in this report or a subsequent installment. All wording
c. Public and private grant funding. In the case where
i. Inclusion should be taken in its greater context.
funding has been totaled, and grant funding has
1. The company is headquartered in Germany: occurred in between equity funding rounds, the grant
a. The location of a company’s headquarters was funding has been subtracted or omitted from the total 4. CORE DATABASES UTILIZED
determined using a combination of private databases, figure.
d. IPO rounds a. Pitchbook
as well as publicly accessible sources such as a
e. Crypto Coin Offerings (ICOs/IEOs/ISOs/ITOs et al.) have b. Crunchbase
company’s official website, official LinkedIn profile, legal
documents, and press releases. not been included. c. Dealroom.co
f. Non-cash contributions (such as Google Cloud Credits in d. CB Insights
2. Company characteristics:
the case of Google-accelerated ventures).
a. Currently operational, and
iii. Mega deals are defined as venture deals of $100m + Disclaimer: The contents are not a representation by the covered companies and
b. Blockchain/cryptocurrency as a primary focus, or where
are based upon or derived from information generally believed to be reliable,
the technology is integral in achieving the business’
iv. Funding data is often reported well after the fact. Therefore, although no representation is made that it is accurate or complete. CV VC AG
primary focus, and
reported funding data is subject to revision. or its associates accept no liability with regard to the reader’s reliance on the
c. Successfully raised a funding round between 01 Jul 2022
Report.
and 30 Jun 2023, and v. Geographic regions have been aligned with Pitchbook’s
d. Active website region breakdown. For e.g. the region of North America
Should you require any further clarity surrounding the research methodologies
includes Bermuda, Canada, Greenland, Mexico, USA.
3. Funding: used or feel that your company has not been included where it should have been,
a. Min funding = $100k please don’t hesitate to reach out to reports@cvvc.com
b. German Unicorns
b. Disclosed, publicly verifiable funding deals:
i. Inclusion
i. In the case where funding has been totaled, and
undisclosed rounds have fallen between disclosed 1. A privately-owned tech company, valued at $1 billion +,
03
EXECUTIVE
SUMMARY
11 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 03. EXECUTIVE SUMMARY
GLOBAL VENTURE FUNDING EUROPEAN VENTURE FUNDING
Global annual venture funding totalled Q3 ‘22 - Q2’23 Europe's portion of global venture funding increased Europe’s annual median deal size was
$2m. Since 2018, it gradually increased
$370b across 26,266 deals in Q3'22 to markedly from 10% in 2018 to 17%.
relative to the global annual median,
Q2'23, marking the lowest four-quarter $370 BILLION 50% moving from a disparity of -47% to -33%.
period in three years. This reflected a 50% FROM $738B
46% 30% Europe secured $63.8b across 7,149
deals in Q3’22 - Q2’23, marking a
funding decline and 32% fewer deals than 2018 EUROPEAN MEDIAN DEAL SIZE -47%
the preceding year's $738b and 38,691 YoY decline of 46% and 30%
26,266 DEALS 32% respectively, although Europe still
deals, which had only 1% less funding than FROM 38,691 $68.3 7,149 $2M EUROPEAN MEDIAN DEAL SIZE -33%
the all-time-high year of 2021. makes up 27% of total global
BILLION DEALS
venture deals. GLOBAL MEDIAN DEAL SIZE
Average annual venture deal size in In Q2’23, European

Europe declined by 23% to $8.92m, venture funding had a
28% 22% 37% lower than the global average. 9% QoQ increase,
15
166
USA EUROPE ASIA GLOBAL GLOBAL rebounding after 4
FUNDING DEALS
consecutive declining Q3 ‘22 -
Q2 ’23
23% quarters while deals

37%
UNICORNS
continued downward for
The USA accounted for 48% of
17% 27% $8.92 the 6th successive
48% 41% Europe has a total of 166 unicorns, with
LOWER THAN GLOBAL
GLOBAL GLOBAL global funding and 41% of global MILLION AVERAGE DEAL SIZE
FUNDING DEALS quarter. 15 gaining their horns in the period
GLOBAL GLOBAL deals. Asia secured 28% of
FUNDING DEALS funding and 22% of deals, Europe
with 17% and 27% respectively.
GERMAN VENTURE FUNDING
The average deal size declined by 26% $8.8b raised across 614
The global median deal size declined by 8% YoY to $3m,
YoY to $14.1m with Q4’22’s total being venture deals over the
14%
-
8.6%
- 53% 22% German venture
with South America being the lowest by region ($1.71m) funding declined
OF
the lowest quarterly figure in the span
OF
last four quarters with
EU
and the Middle East achieving the highest ($5m). by 53% while
$8.8B 614
EURO AN VEN
ROP
of 2 years, at $13.2m. Germany accounting for deals declined by
EAN VENT
PE
14% of European venture GERMAN VENTURE
FUNDING
GERMAN VENTURE
DEALS 22% from $19.1m
funding and 8.6% of $19.1 786 and 786 deals.
UR
8%
TU
26%
E
RE
$3 MILLION
DE
European venture deals. MILLION DEALS
FU AL
NDING S
MEDIAN DEAL SIZE
The German median deal size is GLOBAL 27%

$14.1 $13.2 $3.85m, surpassing the global
$3.85M MEDIAN DEAL SIZE 1
7.
Mega deals are down by 61%, MILLION MILLION LOWEST median by 27% and the 2.6 8
QUARTER
European median by 91%. 91% %
%
YoY Q4 ‘22
totalling 623. Q1’23’s total of 118 IN 2 YEARS EUROPEAN
-
16
OF
marked the lowest quarterly number
OF EUROPEAN
GLOBAL ME
since Q4’19.
MEGA DEALS
The German venture funding average Germany has 18% of the European
OP
E 61% deal size declined by 40% YoY, unicorn herd with a total of 30
MEGA DEALS
amounting to $14.46m - still 62% and 2 which were born in 2023.
G
A
%
R
NO
D
EU
EAL
14
higher than the European average.
M
EG S
RTH
18%
AD
623 1,225
EALS
AMERICA -
40%
North American mega deals 84% 62% 30 OF EUROPEAN
%
MEGA DEALS GLOBAL UNICORNS UNICORN HERD

- 28
accounted for 53% of the UNICORNS Germany saw 16 mega deals in

53
A
2
global total, followed by Asia HIGHER THAN EUROPEAN
the period, 2.6% of global mega
%
SI
A
$14.46 AVERAGE DEAL SIZE NEW
and Europe with 28% and Unicorn births fell by 84%, making for a total UNICORNS deals and 17.8% of European mega
14% respectively. count of 1,225 globally. MILLION $8.92 MILLION in 2022 - 2023 deals.
12 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 03. EXECUTIVE SUMMARY
GLOBAL BLOCKCHAIN VENTURE FUNDING EUROPEAN BLOCKCHAIN VENTURE FUNDING
$14.6b in 1,367 deals in last 4 quarters, 62% funding USA led with 45% funding, 42%
$3.8B ACROSS 329 DEALS
deals in blockchain ventures Q4’22: 49% YoY funding increase,
drop, 44% fewer deals. the only quarter exceeding the previous
62% 44% Q3 ‘22 - Q2’23 26% GLOBAL FUNDING SHARE Deals per
year. Q2’23: 82% YoY funding drop.
42%
GL
OB
Q3 ‘21 - Q2’22 18% GLOBAL FUNDING SHARE
quarter
Q2'23 marked a 5% QoQ 45%
GL
declined for 49%
AL
funding increase after 4 Q4’22
OB
Despite a 46% funding decrease, Europe secured
DE
6 consecutive
AL F
ALS
quarters of decline, while deals
USA $3.8b across 329 deals, reaching a record 26% Q2’23 82%
UNDIN
continued to drop for the 5th $14.6 1,367
share of global blockchain funding, up from 18% in quarters
consecutive quarter. BILLION DEALS
G
the previous 4 quarters.
Median deal size for

Global median deal size rose 8% to $3.5m. Europe had 7 mega deals, European
blockchain funding stayed OF OF
Annual average deal size slid to comprising 28% of global blockchain funding
AL
AL
above the global
28%
7
33
LE
LE
$10.6m from $15.6m the prior year.
5.9% 4.6% accounted for 5.9%
%
mega deals and 33% of
UROPEAN VE
UROPEAN VE
sector-agnostic median
8% for 6 straight quarters, mega deal funding, up of all European
$3.5 MILLION
ING
MEGA DEALS
32% venture funding
OF
from 11% and 19%
ND
with a 15% difference
NT
NT
O
F
GL
UR UR
FU
and 4.6% of deals.
M
respectively.
EF ED
BA EGA DEAL
throughout the period of
O
$10.6
UNDING EALS
$15.6
LM
EGA DEALS
MEDIAN DEAL SIZE Q3’22 to Q2’23. MILLION MILLION
PREVIOUS YEAR ANNUAL DEAL SIZE

EUROPEAN MEDIAN Annual median deal
69% DEAL SIZE
size consistently
25
Q4 ‘22
in deals 4% surpassed the
$3.1 MILLION 31%
2 NEW
sector-agnostic
9 NEW
BLOCKCHAIN OF ALL GLOBAL
81% MEGA DEALS
MEGA DEALS
GLOBAL MEDIAN DEAL SIZE
European median deal
in funding size over the past 4 Q3 ‘22 BLOCKCHAIN
BLOCKCHAIN
UNICORNS
11.7% years, standing 53%
UNICORNS
OF GLOBAL
Despite a 31% YoY increase to $3.1m, the higher in the last year Two new European blockchain unicorns
25 blockchain mega deals globally, 4% of all global
9 new blockchain unicorns emerged in the last median deal size still lags behind the global compared to the emerged - one in Q3, another in Q4 of
mega deals, down 69% in deals and 81% in funding
4 quarters, 11.7% of new global unicorns. blockchain venture median. previous year. 2022
from the previous year.
GERMAN BLOCKCHAIN VENTURE FUNDING
3%
8.5% 6%
5%
$355m across 34 OF OF
10
Reached 4% of all
GL
GL
4%
deals, up 3% from Secured 9.4% of
4.9%
9.4
OB
OB
.3
%
2.4% 2.5%
AL FUNDI
AL DEAL S
FROM FROM
$346m across 47 European blockchain German venture
%
deals in the 0.9% 1.9% funding and 10.3% of all
OF EUROPEAN
BLOCKCHAIN
OF GERMAN
VENTURE funding and 5.5% of
N
G
H
SH AR
previous 4 quarters. $346M $355M FUNDING & FUNDING & deals, up from the
E
European blockchain
ARE
DEALS DEALS
All continents saw ACROSS ACROSS deals, up from 4.9% and previous year's 1.8% of
Germany achieved a record-high global blockchain
YoY annual funding 47 DEALS 34 DEALS funding and 6% of deals.
funding share at 2.4% and 2.5% of global deals, up 8.5% respectively.
declines. Q3 ‘21 - Q2’22 Q3 ‘22 - Q2’23
from 0.9% funding and 1.9% deals in the previous year.
9% A single mega deal,

BELOW Annual average deal 56% $235M Annual median deal size was 30% lower than the
2% EUROPEAN Matter Labs, 5% Q4’22 was the
42% BELOW AVERAGE size rose 42% YoY
represented 56% of
GLOBAL MEGA
dominant European median and 38% lower than the global median.
1
OF
GLOBAL DEAL DEAL FUNDING

to $10.4m, still 2%
GE
AVERAGE
DEAL German blockchain funding quarter,
RMAN BLOCK
below the global

funding during the raising $235m -
and 9% below the BLOCKCHAIN
$2.2 MILLION
period, contributing to MEGA DEAL 12 times greater
European average
$10.4M 5% of global and 14% of 14% than Q1’23.
after lagging for
CH
AI 38% LOWER THAN GLOBAL MEDIAN DEAL SIZE

European mega deal N EUROPEAN MEGA
AVERAGE DEAL DEAL FUNDING
over 5 years.
FU
SIZE
NDING 30% LOWER THAN EUROPEAN MEDIAN DEAL SIZE
funding. Q4’22 Q1’23
04
VENTURE
FUNDING
OVERVIEW
14 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 04. VENTURE FUNDING OVERVIEW
The State of Venture ANNUAL SECTOR-AGNOSTIC VENTURE DEALS BY REGION
Funding in Germany
1000
This section investigates the state of blockchain and cryptocurrency venture funding in Germany. 100
To give context to the data, we will provide an overview of sector-agnostic venture funding globally,
in Europe, and Germany, before doing so in relation to blockchain venture funding specifically.
We then present an overview of the German blockchain industry in the context of businesses (by
geographic spread, industry sector, and type of deal) that have successfully raised funding over 10
the last four quarters, from Q3 2022 through Q2 2023. We conclude this funding section of the
German Blockchain Report with an investor watchlist.
0
VENTURE FUNDING - A SNAPSHOT
2018 2019 2020 2021 2022 2023 (YTD)
At CV VC, we believe that for an analysis of blockchain-specific venture funding to be useful, it

SOUTH AMERICA AFRICA OCEANIA MIDDLE EAST EUROPE
is imperative to incorporate the broader context of global venture funding and the significant
ASIA NORTH AMERICA GERMANY
developments that have transpired. In each summary analysis block, we highlight the prevalent
data for Germany against the global and European backdrops. Additionally, tracking trends in
ANNUAL SECTOR-AGNOSTIC SHARE OF VENTURE DEALS BY REGION
venture funding and monitoring the global economic climate are crucial steps we have undertaken,
100%
to attain a more profound understanding of the overarching landscape.
We now expand on such key global venture funding metrics before delving into blockchain-
80%
specific venture funding.
Global Venture Funding 60%
Global venture funding totaled $370b between Q3’22 and Q2’23, spanning 26,266 deals. This
marked a significant 50% decrease in funding and a 32% reduction in the number of deals 40%
compared to the corresponding period a year prior. These figures indicate the lowest funding
amount observed over a four-quarter period in the past three years.
20%
The number of venture deals continued its decline for the fifth consecutive quarter, while
funding also decreased for the sixth consecutive quarter.
The majority of venture capital activity is concentrated in the USA, which accounts for 48% 0%
2018 2019 2020 2021 2022 2023 (YTD)
of global funding and 41% of global deals. Asia and Europe account for the majority of the
remaining VC deals, with Asia contributing 28% of funding and 22% of deals and Europe GERMANY NORTH AMERICA ASIA EUROPE MIDDLE EAST
contributing 17% of funding and 27% of deals. OCEANIA AFRICA SOUTH AMERICA
Germany raised $8.8b in 614 venture deals over the last four quarters, accounting for 2.4% of
ANNUAL SECTOR-AGNOSTIC SHARE OF VENTURE FUNDING BY REGION
global venture funding, 2.34% of global venture deals, 14% of European venture funding, and
100% 8.6% of European venture deals.
German venture funding has experienced a 53% decrease in comparison to the previous four
80% quarter period, while the amount of venture deals has declined by 22%
ANNUAL GERMAN SECTOR-AGNOSTIC VENTURE FUNDING AS A %

60% OF GREATER REGION SECTOR-AGNOSTIC VENTURE FUNDING
20%
40%
15%
20%
10%
0%
2018 2019 2020 2021 2022 2023 (YTD)
AFRICA OCEANIIA SOUTH AMERICA MIDDLE EAST EUROPE 5%
0%
ANNUAL SECTOR-AGNOSTIC VENTURE FUNDING BY REGION 2018 2019 2020 2021 2022 2023 (YTD)
GERMANY VS EUROPE GERMANY VS GLOBAL

$1,000M
ANNUAL GERMAN SECTOR-AGNOSTIC VENTURE DEALS AS A %

OF GREATER REGION SECTOR-AGNOSTIC VENTURE DEALS
$100M 10%
$10M
5%
$1M
$0
2018 2019 2020 2021 2022 2023 (YTD)
0%
2018 2019 2020 2021 2022 2023 (YTD)
AFRICA OCEANIIA SOUTH AMERICA MIDDLE EAST EUROPE
ASIA NORTH AMERICA GERMANY GERMANY VS EUROPE GERMANY VS GLOBAL
ANNUAL SECTOR-AGNOSTIC MEDIAN DEAL SIZE BY REGION

Global Venture Median Deal Sizes
The global median deal size during the period experienced an 8% decrease $5,000,000
compared to the preceding four quarters, reaching its lowest point in Q1’23 at
$3m.
$4,000,000
The Middle East achieved the highest median deal size when comparing
continents, surpassing Asia in Q2’22 and reaching $5m for the last four quarters.
$3,000,000
Since 2018, Europe’s annual median deal size has demonstrated a gradual
increase relative to the global median, transitioning from a disparity of -47% to
$2,000,000
-33%.
Over the past four quarters, Europe’s venture funding exhibited a median deal $1,000,000
size of $2.015m, reflecting a 6% year-over-year increase. This positions Europe
with a median deal size higher only than those observed in South America and
$0
Africa when assessed among all continents. 2018 2019 2020 2021 2022 2023 (YTD)
Even though Germany’s median deal size decreased by 6% compared to the GLOBAL AFRICA ASIA MIDDLE EAST NORTH AMERICA
preceding four-quarter period to $3.85m, it still surpassed the global median by OCEANIA SOUTH AMERICA EUROPE GERMANY
27% and the European median by 91%.
ANNUAL SECTOR-AGNOSTIC MEDIAN DEAL SIZE VS GREATER REGION
SECTOR AGNOSTIC MEDIAN DEAL SIZE
200%
150%
100%
50%
0%
-50%
-100%
2018 2019 2020 2021 2022 2023 (YTD)
AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA

SOUTH AMERICA EUROPE GERMANY VS GLOBAL GERMANY VS EUROPE
ANNUAL SECTOR-AGNOSTIC AVERAGE DEAL SIZE VS GREATER REGION

Global Venture Average Deal Sizes SECTOR-AGNOSTIC AVERAGE DEAL SIZE
The global average deal size for the last four quarters has experienced a decline of 26%
in comparison to the same quarters from the previous year, reaching its lowest point in 150%
Q4’22 at $13.2m - also marking the lowest figure in a span of 2 years.
Asia boasted the highest average deal size at $18.3m, followed closely by North America
100%
at $16m.
Average venture deal size in Europe declined by 23% to reach $8.92m over the last four
quarters, which is 37% lower than the global average venture deal size. 50%
Despite the annual average deal size for venture funding in Germany declining by 40%
year-over-year to $14.46m, it remains 3% higher than the global annual average and
0%
62% higher than the European annual average.
Germany’s quarterly average deal size has consistently exceeded the European average
deal size. -50%
-100%
ANNUAL SECTOR-AGNOSTIC AVERAGE DEAL SIZE BY REGION 2018 2019 2020 2021 2022 2023 (YTD)
$30,000,000 AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA

SOUTH AMERICA EUROPE GERMANY VS GLOBAL GERMANY VS EUROPE
$20,000,000
Global Venture Mega Deals
The count of mega deals (deals with funding of $100m or more) during the last four
quarters is down by 61%, amounting to a total of 623. The lowest quarterly count of mega
$10,000,000 deals was reached in Q1 2023, totaling 118 - marking the lowest number since Q4 2019.
North American mega deals accounted for 53% globally, followed by Asia and Europe with
28% and 14%, respectively.
$0 Europe’s contribution to global mega deals was 14%, both in terms of deal count as well as
2018 2019 2020 2021 2022 2023 (YTD)
funding, totaling $21.7b across 90 deals. This reflects a 60% decline in the mega-deal count
GLOBAL AFRICA ASIA MIDDLE EAST NORTH AMERICA and a 62% decline in funding compared to the previous year.
OCEANIA SOUTH AMERICA EUROPE GERMANY Germany had 16 mega deals in the last 4 quarters, making up 2.6% of global mega deals
and 17.8% of European mega deals.
ANNUAL SECTOR-AGNOSTIC AMOUNT OF MEGA DEALS BY REGION ANNUAL SECTOR-AGNOSTIC MEGA DEALS FUNDING AMOUNT BY REGION
1000
$100,000,000,000
100
$10,000,000,000
10
$1,000,000,000
0 $100,000,000
2018 2019 2020 2021 2022 2023 (YTD) 2018 2019 2020 2021 2022 2023 (YTD)
AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA
SOUTH AMERICA EUROPE GERMANY SOUTH AMERICA EUROPE GERMANY
ANNUAL SECTOR-AGNOSTIC AMOUNT OF MEGA DEALS AS A % ANNUAL SECTOR-AGNOSTIC MEGA DEALS FUNDING AMOUNT AS A %
OF GREATER REGION AMOUNT OF MEGA DEALS OF GREATER REGION FUNDING AMOUNT
100%
50%
80%
40%
30% 60%
20% 40%
10% 20%
0% 0%
2018 2019 2020 2021 2022 2023 (YTD) 2018 2019 2020 2021 2022 2023 (YTD)
AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA NORTH AMERICA ASIA EUROPE SOUTH AMERICA
SOUTH AMERICA EUROPE MIDDLE EAST OCEANIA AFRICA
Global Unicorns ANNUAL SECTOR-AGNOSTIC AMOUNT OF UNICORN BIRTHS BY REGION
A unicorn is defined as a company valued at $1b+. CB Insights’ complete list of unicorn companies served as 500
the primary source for the reporting on and analysis of unicorns throughout this report. However, it’s important
to highlight that there are discrepancies with other sources. For instance, GP Bullhound’s Titans of Tech 2023
report states that there are a total of 38 unicorns in Germany, whereas CB Insights lists only 30.
100
The number of unicorn births experienced a significant decline of 84%, reducing to only
50
77 over the last four quarters. This takes the total count of global unicorns to 1,221, as
reported by CB Insights.
Europe has a total of 167 unicorns, with 16 being born over the past four quarters. This
10
represents 14% of the global unicorn count and 21% of the new unicorns during the
period. 5
Germany has a total of 30 unicorns, with 2 being born in 2023 namely 1Komma5 and
DeepL.
1
2018 2019 2020 2021 2022 2023 (YTD)
GLOBAL AFRICA ASIA MIDDLE EAST NORTH AMERICA

OCEANIA SOUTH AMERICA EUROPE GERMANY
ANNUAL SECTOR-AGNOSTIC TOTAL UNICORNS BY REGION
1000
100
10
2018 2019 2020 2021 2022
GLOBAL AFRICA ASIA MIDDLE EAST NORTH AMERICA

OCEANIA SOUTH AMERICA EUROPE GERMANY
BLOCKCHAIN VENTURE FUNDING - A SNAPSHOT ANNUAL BLOCKCHAIN VENTURE FUNDING BY REGION
$10,000M
In the 2022 calendar year, global blockchain venture funding amounted to $30.34b, a
figure similar to that recorded in 2021.
Over the last four quarters, blockchain businesses raised $14.6b in 1,367 deals $1,000M
globally, a 62% decline in funding and a 44% decrease in venture deals compared
to the preceding four-quarter period. Every quarter was down compared to the
corresponding quarter of the previous year, Q3’22 saw the smallest decline of 32%, $100M
and Q1’23 the biggest decline of 77%.
Similar to sector-agnostic funding trends, the majority of blockchain venture funding

$10M
is concentrated in the USA, accounting for 45% of the total funding and 42% of all
global deals.
$1M
Q2’23 marked the end of a four-quarter streak of successive declines in quarterly 2018 2019 2020 2021 2022 2023 (YTD)
funding, exhibiting a 5% increase over the funding recorded in Q1’23. Despite
SOUTH AMERICA OCEANIA AFRICA MIDDLE EAST EUROPE
this positive shift, the number of deals continued to trend downward for its fifth
consecutive quarterly decline. In Q2’23, there were only 2% fewer deals than in Q1’23.
The global median deal size has experienced an 8% increase, reaching $3.5m.
SHARE OF ANNUAL BLOCKCHAIN VENTURE FUNDING BY REGION
The average deal size has decreased to $10.6m over the last four quarters, down from
the peak of $15.6m in the preceding year period. Furthermore, the average deal size 100%
remained consistently lower compared to the previous year’s quarters.
Globally, there were only 25 blockchain mega deals, reflecting a substantial decline 80%
of 69% in the number of deals and an 81% reduction in funding compared to the
preceding year period.
60%
Only 9 new blockchain unicorns emerged during the last four quarters, accounting for
11.7% of global unicorn births. This percentage is consistent with the figures from the
40%
previous year period.
The long-term trend of blockchain venture funding as a percentage of global sector-

20%
agnostic venture funding has exhibited an upward trajectory. This percentage of
funding and deals has ascended from 2.1% and 3%, respectively, in 2018 to attain
a peak of 6.7% and 7.2% in Q2 2022. However, there was subsequently a decrease, 0%
2018 2019 2020 2021 2022 2023 (YTD)
settling at 3.9% for funding and 5.2% for deals during the period from Q3 2022 to Q2
SOUTH AMERICA OCEANIA AFRICA MIDDLE EAST EUROPE
2023.
ANNUAL BLOCKCHAIN VENTURE DEALS BY REGION

The median deal size for blockchain venture funding sustained its streak above the global
sector-agnostic venture funding median for the sixth consecutive quarter. It experienced
1000
its most significant surge during Q3 2022, achieving a remarkable all-time high increase of
30.7% over sector-agnostic funding. Overall, it maintained a 15.35% margin over the period
from Q3 2022 to Q2 2023.
Blockchain mega deals represented 4% of all global mega deals and accounted for 2.7% of
100
funding, indicating a decline from the 5.1% of deals and 5.6% of funding recorded over the
previous four-quarter period.
10
0
2018 2019 2020 2021 2022 2023 (YTD)
SOUTH AMERICA OCEANIIA AFRICA MIDDLE EAST EUROPE

SHARE OF ANNUAL BLOCKCHAIN VENTURE DEALS BY REGION
2018
2019
2020
2021
2022
2023
(YTD)
0% 20% 40% 60% 80% 100%
SOUTH AMERICA OCEANIIA AFRICA MIDDLE EAST EUROPE

EUROPEAN BLOCKCHAIN VENTURE FUNDING Since 2018, the median deal size for European blockchain venture funding has consistently stayed
below the global median. In the past year, the median deal size has risen to $3.09m, marking a 31%
Europe garnered $3.78b in blockchain venture funding through 329 deals, affirming its second- increase compared to the previous year.
place standing since surpassing Asia in 2020. In comparison, North America recorded $7.5b
across 664 deals, while Asia achieved $2.4b spanning 274 deals. Interestingly, the annual median deal size for blockchain venture funding in Europe has consistently
outpaced the sector-agnostic European venture funding median deal size over the last four years.
Europe reached its highest-ever share of the global blockchain venture funding, soaring to 26%, It stood 53% higher over the last year, exemplifying the distinct momentum within the blockchain
a notable increase from the 18% observed in the previous four-quarter period. investment landscape.
The number of deals per quarter continued to decline throughout the year, marking six
quarters of successive decreases. ANNUAL GERMANY BLOCKCHAIN VENTURE FUNDING AS A % OF GREATER
REGION BLOCKCHAIN VENTURE FUNDING
Q4 2022 stood out as the sole quarter that experienced greater funding than the
30%
corresponding quarter in the previous year, boasting an increase of 49%. In contrast, Q2 2023
witnessed a significant decline, plummeting by 82%
Seven of the blockchain mega deals occurred in Europe, constituting 28% of the total deals
20%
and 33% of the funding - a notable surge in comparison to the previous year when Europe only
accounted for 11% of mega deals and 19% of funding.
Europe saw the emergence of three new blockchain unicorns during this period - two in Q3 and
10%
another in Q4 of 2022:
» 5ire is a smart contract platform compatible with Ethereum’s layer-1 technology. With
a reputation-based system driven by a proof-of-benefit model, it actively promotes
0%
positive impact and eco-friendly practices. By embedding sustainability within its logic, 2018 2019 2020 2021 2022 2023 (YTD)
5ireChain aligns on-chain and real-world activities with the SDGs. The company was
EUROPE VS GLOBAL GERMANY VS GLOBAL GERMANY VS EUROPE
founded in 2021 and is based in London, UK.
ANNUAL GERMANY BLOCKCHAIN VENTURE DEALS AS A % OF GREATER
» 21.co, with offices in Zurich and New York, is a developer of a digital asset index REGION BLOCKCHAIN VENTURE DEALS
platform designed for investing in crypto assets. Their product suite features industry-
40%
leading research and a comprehensive offering of cryptocurrency Exchange Traded
Products (ETP). The company’s pioneering approach since 2018, including the world’s
first physically-backed crypto ETP, signifies its commitment to making cryptocurrency 30%
investing accessible and dynamic.
» Celestia is a pluggable consensus and data layer, streamlining decentralized blockchain 20%
deployment through a modular network. Founded in 2019 in Vaduz, Liechtenstein, it
separates consensus and execution layers, enabling novel decentralized applications.
10%
Its innovation lies in self-governing blockchain rollups, transforming scalability and
interoperability for decentralized applications.
0%
When contrasted with sector-agnostic venture funding in Europe, blockchain venture funding
2018 2019 2020 2021 2022 2023 (YTD)
captures 5.9% of the funding and constitutes 4.6% of the deals.
GERMAN BLOCKCHAIN VENTURE FUNDING BLOCKCHAIN VENTURE FUNDING BY REGION
Despite a decline in funding across all continents, Germany stands out as the sole region
under analysis to witness an increase in funding during the Q3 2022 to Q2 2023 period,
$10,000,000,000
compared to the preceding year. Over this time frame, it secured a total of $355m across 34
deals, reflecting a 3% increase when compared to the previous four quarters, which accounted
for $346m across 47 deals. This achievement marks a historic milestone, representing the
nation’s largest ever share of global blockchain funding - constituting 2.4% of the total global
$1,000,000,000
blockchain funding and 2.5% of global blockchain deals. This is in contrast to the previous
year’s period, during which it received only 0.9% of funding and 1.9% of deals.
Germany’s performance within the context of European blockchain venture funding is even $100,000,000
more remarkable. It secured 9.4% of the funding share and participated in 10.3% of the
deals between Q2 2022 and Q3 2023, indicating a significant improvement over the prior
year’s figures of 4.9% funding and 8.5% deals. Moreover, the share of German blockchain
venture funding, in relation to German broader sector-agnostic venture funding, reached $10,000,000
an unprecedented peak of 4% for funding and 5.5% for deal count. This marks a substantial AFRICA ASIA MIDDLE NORTH OCEANIA SOUTH EUROPE GERMANY
EAST AMERICA AMERICA
increase from the previous year’s figures of 1.8% for funding and 6% for deal count.
Q3’21 - Q2’22 Q3’22 - Q2’23
BLOCKCHAIN VENTURE DEALS BY REGION
1000 1183
664
571 552
329
274
100
62
47
47
44
33 34
31
10 21
19 20
AFRICA ASIA MIDDLE NORTH OCEANIA SOUTH EUROPE GERMANY

EAST AMERICA AMERICA
Q3’21 - Q2’22 Q3’22 - Q2’23

QUARTERLY GERMAN BLOCKCHAIN VENTURE FUNDING QUARTERLY GERMAN BLOCKCHAIN VENTURE DEALS
15
$250,000,000
14 14
12
$200,000,000
11
10
10
$150,000,000
8 8
$100,000,000 5
$50,000,000
0
$0 Q3’22 Q4’22 Q1’23 Q2’23
Q3’22 Q4’22 Q1’23 Q2’23
Q3’21 - Q2’22 Q3’22 - Q2’23 Q3’21 - Q2’22 Q3’22 - Q2’23
QUARTERLY GERMANY BLOCKCHAIN VENTURE FUNDING AS A % OF QUARTERLY GERMANY BLOCKCHAIN VENTURE DEALS AS A % OF
GREATER REGION BLOCKCHAIN VENTURE FUNDING GREATER REGION BLOCKCHAIN VENTURE DEALS
40% 30%
30%
20%
20%
10%
10%
0% 0%
Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23 Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23

ANNUAL BLOCKCHAIN VENTURE FUNDING AS A % OF QUARTERLY BLOCKCHAIN VENTURE FUNDING AS A % OF

SECTOR-AGNOSTIC VENTURE FUNDING SECTOR-AGNOSTIC VENTURE FUNDING
8% 15%
6%
10%
4%
5%
2%
0% 0%
2018 2019 2020 2021 2022 2023 (YTD) Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23
GLOBAL EUROPE GERMANY GLOBAL EUROPE GERMANY
ANNUAL BLOCKCHAIN VENTURE DEALS AS A % OF QUARTERLY BLOCKCHAIN VENTURE DEALS AS A % OF

SECTOR-AGNOSTIC VENTURE DEALS SECTOR-AGNOSTIC VENTURE DEALS
8% 8%
6% 6%
4% 4%
2% 2%
0% 0%
2018 2019 2020 2021 2022 2023 (YTD) Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23

QUARTERLY BLOCKCHAIN VENTURE FUNDING
Throughout the past year, Q4’22 emerged as the dominant funding quarter, accumulating $10,000,000,000 1300%
the majority of funding at $235.4m. Notably, a single mega-deal during that quarter
accounted for a significant 56% of the total funding for the period. This mega deal’s 1100%
significance extends to its representation of 5% of all global mega deal funding, and an
impressive 14% across the European landscape. Matter Labs, the creators of zkSync, 900%
secured funding in this round, totaling $200m. Only Q1 2023 experienced a decrease in $1,000,000,000
funding compared to the corresponding quarter in the previous year, with a substantial
700%
drop of 73%.
500%
Since 2021, the annual median deal size for blockchain venture activities in Germany
has consistently remained below both the global and European medians. From Q3’22 $100,000,000
300%
to Q2’23, the median deal size for Germany was $2.2m, representing a 38% difference
from the global median and 30% less than the European median. Notably, in Q2’23, the
100%
German quarterly median surpassed the global and European figures by 5% and 18%,
respectively, reaching a value of $3.9m. While the annual average blockchain venture
$10,000,000 -100%
deal size in Germany demonstrated a remarkable year-over-year increase of 42%,
Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23
reaching $10.4m, it still falls slightly below the global average by 2% and the European
average by 9%. The annual average venture deal size in the German blockchain sector GERMANY EUROPE GLOBAL GERMANY QoQ EUROPE QoQ GLOBAL QoQ
consistently falls short of both global and European annual blockchain venture funding
averages over the past five years.
QUARTERLY BLOCKCHAIN VENTURE DEALS
1000 716
150%
649 630
480 492
341
274 269
146 148
143 100%
115 116
100 87
67
59
50%
14 14
12
11
10
10 8 8
4
0%
1 -50%
Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23
GERMANY EUROPE GLOBAL GERMANY QoQ EUROPE QoQ GLOBAL QoQ

ANNUAL BLOCKCHAIN VENTURE CAPITAL MEDIAN DEAL SIZE VS QUARTERLY BLOCKCHAIN VENTURE CAPITAL MEDIAN DEAL SIZE VS
SECTOR-AGNOSTIC VENTURE CAPITAL MEDIAN DEAL SIZE SECTOR-AGNOSTIC VENTURE CAPITAL MEDIAN DEAL SIZE
50% 75%
50%
25%
25%
0%
0%
-25%
-25%
-50%
-50%
-75%
2018 2019 2020 2021 2022 2023 (YTD) Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23
ANNUAL BLOCKCHAIN VENTURE CAPITAL NUMBER OF MEGA DEALS AS A QUARTERLY BLOCKCHAIN VENTURE CAPITAL NUMBER OF MEGA DEALS AS A
% OF SECTOR-AGNOSTIC VENTURE CAPITAL NUMBER OF MEGA DEALS % OF SECTOR-AGNOSTIC VENTURE CAPITAL NUMBER OF MEGA DEALS
10% 40%
8%
30%
6%
20%
4%
10%
2%
0% 0%
2018 2019 2020 2021 2022 2023 (YTD) Q2 ‘23 Q1 ‘23 Q4 ‘22 Q3 ‘22 Q2 ‘22 Q1 ‘22 Q4 ‘21 Q3 ‘21

EQUITY CROWDFUNDING
Germany Blockchain
ACCELERATOR/INCUBATOR
$110,000
$780,000
Venture Funding
ANGEL (INDIVIDUAL)
$5,410,000
by Round Type
SEED ROUND
$71,440,000
1 3
4
2
GERMANY BLOCKCHAIN
GERMANY BLOCKCHAIN VENTURE FUNDING BY ROUND TYPE
VENTURE CAPITAL BY
FUNDING ROUND TYPE
Q3 2022 - Q2 2023 Q3 2021 - Q2 2022
Q3 ‘22 - Q2 ‘23
% OF % OF % OF % OF
ROUND TYPE
# OF
FUNDING FUND-
# OF
FUNDING FUND- * funding indicated in outside ring and
DEALS DEALS DEALS DEALS
ING ING deals indicated in inside ring
10
EQUITY
2.9% 1 $110,000 0.0% 0.0% 0 $0 0.0%
CROWDFUNDING
14
ACCELERATOR/
9.1% 3 $780,000 0.2% 8.5% 4 $560,000 0.2%
INCUBATOR
ANGEL (INDIVIDUAL) 6.1% 2 $5,410,000 1.5% 2.1% 1 $660,000 0.2%
EARLY
STAGE VC
SEED ROUND 42.4% 14 $71,440,000 20.1% 48.9% 23 $68,670,250 19.8%
$63,210,000
EARLY STAGE VC 30.3% 10 $63,210,000 17.8% 29.8% 14 $162,190,000 46.8%
LATER STAGE VC 12.1% 4 $214,100,000 60.3% 10.6% 5 $114,210,000 33.0%
LATER STAGE VC
$214,100,000
ANNUAL GERMANY BLOCKCHAIN VENTURE FUNDING ANNUAL GERMANY BLOCKCHAIN VENTURE DEALS
BY FUNDING ROUND TYPE BY FUNDING ROUND TYPE
$400,000,000 50
40
$300,000,000
30
$200,000,000
20
$100,000,000
10
$0 0
2018 2019 2020 2021 2022 2023 (YTD) 2018 2019 2020 2021 2022 2023 (YTD)
EQUITY CROWDFUNDING LATER STAGE VC EARLY STAGE VC SEED ROUND EQUITY CROWDFUNDING LATER STAGE VC EARLY STAGE VC SEED ROUND
PRE SEED ROUND ANGEL (INDIVIDUAL) ACCELERATOR/INCUBATOR PRE SEED ROUND ANGEL (INDIVIDUAL) ACCELERATOR/INCUBATOR
QUARTERLY GERMANY BLOCKCHAIN VENTURE FUNDING QUARTERLY GERMANY BLOCKCHAIN VENTURE DEALS
BY FUNDING ROUND TYPE BY FUNDING ROUND TYPE
$200,000,000 15
$100,000,000
$10,000,000
10
$1,000,000
$100,000
$10,000 0
Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23 Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23
EQUITY CROWDFUNDING LATER STAGE VC EARLY STAGE VC SEED ROUND EQUITY CROWDFUNDING LATER STAGE VC EARLY STAGE VC SEED ROUND
PRE SEED ROUND ANGEL (INDIVIDUAL) ACCELERATOR/INCUBATOR PRE SEED ROUND ANGEL (INDIVIDUAL) ACCELERATOR/INCUBATOR
HAMBURG BRANDENBURG
Germany Blockchain
Q3 2022 - Q2 2023
Q3 2021 - Q2 2022
# OF DEALS | % OF FUNDING
Venture Capital by
State
$1,050,000 $660,000
$7,080,000 $295,250 # 1 | 0.3% # 1 | 0.2%
# 4 | 2% # 2 | 0.1%
BERLIN
NORTH
RHINE-
WESTPHALIA
$330,310,000 $298,285,000
# 21 | 93% # 27 | 86.1%
$1,830,000 $1,000,000
# 3 | 0.5% # 1 | 0.3%
GERMANY BLOCKCHAIN VENTURE CAPITAL BY STATES
$0 $3,670,000
# 0 | 0% # 2 | 1.1%
Q3 2022 - Q2 2023 Q3 2021 - Q2 2022

$7,570,000 $16,410,000
% OF % OF # 1 | 2.1% # 4 | 4.7%
STATE
% OF # OF
FUNDING FUND-
% OF # OF
FUNDING FUND-
HESSE
DEALS DEALS DEALS DEALS
ING ING
SAXONY
BERLIN 61.8% 21 $330,310,000 93% 57.4% 27 $298,285,000 86.1%
$150,000 $470,000
HESSE 2.9% 1 $7,570,000 2.1% 8.5% 4 $16,410,000 4.7% # 1 | 0% # 1 | 0.1%
HAMBURG 11.8% 4 $7,080,000 2.0% 4.3% 2 $295,250 0.1%
BAVARIA 2.9% 1 $4,320,000 1.2% 17.0% 8 $23,230,000 6.7%
BADEN-
5.9% 2 $2,740,000 0.8% 2.1% 1 $2,270,000 0.7%
WÜRTTEMBERG
NORTH RHINE RHINELAND-

8.8% 3 $1,830,000 0.5% 2.1% 1 $1,000,000 0.3%
-WESTPHALIA PALATINATE $2,740,000 $2,270,000 $4,320,000 $23,230,000
# 2 | 0.8% # 1 | 0.7% # 1 | 1.2% # 8 | 6.7%
BAVARIA
RHINELAND-
2.9% 1 $150,000 0.0% 2.1% 1 $470,000 0.1%
PALATINATE
BRANDENBURG 2.9% 1 $1,050,000 0.3% 2.1% 1 $660,000 0.2%
SAXONY 0.0% 0 $0 0.0% 4.3% 2 $3,670,000 1.1%
BADEN-WÜRTTEMBERG
Germany Blockchain
HEALTH
$4,600,000
CUSTODY & EXCHANGES
Venture Funding by
DATA MANAGEMENT,
$4,320,000
VERIFICATION & ANALYTICS
$24,770,000
Industries DeFi
$82,140,000
2 1
3
GAMING, NFTS &
METAVERSE
$5,710,000
8
GERMANY BLOCKCHAIN 5
GERMANY BLOCKCHAIN VENTURE FUNDING BY INDUSTRY VENTURE CAPITAL

BY INDUSTRY
Q3 2022 - Q2 2023 Q3 2021 - Q2 2022
Q3 ‘22 - Q2 ‘23
* funding indicated in outside ring and
% OF % OF % OF % OF
INDUSTRY # OF
FUNDING FUND-
# OF
FUNDING FUND- deals indicated in inside ring
CATEGORY DEALS DEALS DEALS DEALS
ING ING
4
BLOCKCHAIN
9% 3 $230,500,000 65% 13% 6 $165,970,000 48%
NETWORKS
DEFI 32% 11 $82,140,000 23% 26% 12 $61,260,000 18%
11
DATA MANAGEMENT,
VERIFICATION, & 24% 8 $24,770,000 7% 26% 12 $48,175,250 14%
ANALYTICS
GAMING, NFTS, &

12% 4 $5,710,000 2% 21% 10 $42,255,000 12%
METAVERSE
HEALTH 6% 2 $4,600,000 1% 2% 1 $8,000,000 2%
INFRASTRUCTURE &
CUSTODY &
3% 1 $4,320,000 1% 6% 3 $12,760,000 4% DEVELOPER TOOLS
EXCHANGES
$3,010,000 BLOCKCHAIN
INFRASTRUCTURE & NETWORKS
15% 5 $3,010,000 1% 6% 3 $7,870,000 2%
DEVELOPER TOOLS
$230,500,000
ANNUAL GERMANY BLOCKCHAIN VENTURE FUNDING ANNUAL GERMANY BLOCKCHAIN VENTURE CAPITAL DEALS
BY INDUSTRY CATEGORY BY INDUSTRY CATEGORY
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
2018 2019 2020 2021 2022 2023 (YTD) 2018 2019 2020 2021 2022 2023 (YTD)
HEALTH DATA MANAGEMENT, VERIFICATION, & ANALYTICS DEFI HEALTH DATA MANAGEMENT, VERIFICATION, & ANALYTICS DEFI
GAMING, NFTS, & METAVERSE INFRASTRUCTURE & DEVELOPER TOOLS GAMING, NFTS, & METAVERSE INFRASTRUCTURE & DEVELOPER TOOLS
BLOCKCHAIN NETWORKS CUSTODY & EXCHANGES BLOCKCHAIN NETWORKS CUSTODY & EXCHANGES
QUARTERLY GERMANY BLOCKCHAIN VENTURE FUNDING BY INDUSTRY QUARTERLY GERMANY BLOCKCHAIN VENTURE DEALS
BY INDUSTRY CATEGORY
Q2 ‘23 Q2 ‘23
Q1 ‘23 Q1 ‘23
Q4 ‘22 Q4 ‘22
Q3 ‘22 Q3 ‘22
Q2 ‘22 Q2 ‘22
Q1 ‘22 Q1 ‘22
Q4 ‘21 Q4 ‘21
Q3 ‘21
Q3 ‘21
0 $50M $100M $150M $200M $300M 0 5 10 15
HEALTH DATA MANAGEMENT, VERIFICATION, & ANALYTICS DEFI HEALTH DATA MANAGEMENT, VERIFICATION, & ANALYTICS DEFI
GAMING, NFTS, & METAVERSE INFRASTRUCTURE & DEVELOPER TOOLS GAMING, NFTS, & METAVERSE INFRASTRUCTURE & DEVELOPER TOOLS
BLOCKCHAIN NETWORKS CUSTODY & EXCHANGES BLOCKCHAIN NETWORKS CUSTODY & EXCHANGES
Germany Blockchain Investor Watchlist

1kx APX Axel Springer Porsche Balderton Capital Block.one Blockchain Capital
Blockchain Founders Group Blockwall Capital BlueYard Capital C3 Venture Capital Cherry Ventures
Coinbase Ventures Coinix CommerzVentures CV VC Deutsche Telekom
Digital Currency Group Digital Finance Group Earlybird Venture Capital Fabric Ventures FinLab
FinTech Collective Fos Finance Galaxy Digital Holdings Greenfield Capital Hash Capital (Cayman Islands)
High-Tech Gründerfonds Huobi Ventures HV Capital Hypersphere Ventures Inflection (Delaware)
IOSG Ventures L1 Digital LBBW VC Lightspeed Venture Partners Morningstar Ventures
Oddiyana Ventures Outlier Ventures Placeholder Capital Plug and Play Tech Center Redalpine Venture Partners
RockawayX Signature Venture Tokentus w3.fund Warburg Serres Investments

MULTI-CHAIN & BLOCKCHAIN INTEROPERABILITY

STATUS QUO
This section is a snapshot of the crypto ecosystem in 2023. Mainnet and other chains will merge into a single unified network adoption of the chain with integrations like Solana Pay enabled
for OP Chains. This will require social and technological buy-in on Shopify. Polygon continues onboarding large brands, and
Crypto is Multi-Chain from teams, as explained in the recent Law of Chains governance Avalanche’s Subnets (~22) are growing quickly. Over 560 dApps
post. have deployed on BNB Chain and onboarded 380.6M unique
Ethereum’s Total Value Locked (TVL) dominance has dropped from
wallets to the network.
96% in 2021 to ~50% this year. Much of the TVL and transactions Companies are already striving on OP: Base (by Coinbase)
are now happening on L2s and alt L1s, and this trend is likely to onboarded plenty of blue-chip protocols, and surpassed 100,000 With Multi-Chain Comes Fragmentation
continue. ETH bridged within 20 days post-launch. One of the most popular
NFT platforms, Zora, launched Zora Network, the controversial Aiming to connect all of these blockchains, scaling solutions, and
L2s on Ethereum are expanding from one-off scaling solutions to rollups (there isn’t a single connective word that can be used as a
company Worldcoin allowed Optimism to surpass Arbitrum in
connected rollup ecosystems (Superchain, Orbit, Hyperchains). catch-all anymore) is a large group of infra players creating isolated
daily transactions for the first time since January 2023 on July 24,
Cosmos’ Appchains have potential, with dYdX set to launch this silos of tokens, programming languages, and developers. Third
the same day the Worldcoin (WLD) token went live. Farcaster – a
year and native USDC coming to the ecosystem via Noble. Solana party-bridges like LayerZero and Axelar are attempting to become
decentralized social media protocol with >10,000 active users
is still thriving as a monolithic, single-chain haven for developers the HTTPS of crypto. Liquidity networks (Across, Connext) and
launched their OP chain as well.
in what is increasingly becoming a modular world. Alternative L1s stablecoin bridges (CCTP, Frax Ferry) continue to connect assets
like Polygon (Polygon 2.0), BNB Chain (opBNB), and Avalanche In tandem, multiple teams launched an OP Stack Chain this year. between disparate chains. Modular systems, led by Celestia, are
(Subnets) have also launched scaling infrastructure. Rollups-as-a- These rollups are forked from the OP Stack but are not part of the trying to break up data availability and settlement between chains.
Service players like AltLayer, Conduit, and Eclipse are looking to Superchain collective. Examples are Further fragmentation is being created by the fact that almost
further add to this stack. every arbitrary messaging bridge has created a token standard
• opBNB – a Layer 2 scaling solution launched by the Binance,
(LayerZero’s OFTs, Wormhole xAssets, Axelar’s Interchain Token
With that in mind, let’s dive deeper into the status quo. designed to provide an avg. gas fee for transfers as low as
Service, and Connext’s bridge agnostic token standard xERC-20).
$0.005.
Rollups-as-a-Service are launching – providing the convenience
The Layer 2 Revolution
• Mantle – Mantle’s base chain is built on top of the OP Stack. It and customizability to launch production-ready rollups. Such
Arbitrum is EVM compatible, offering developers a familiar environment initiatives will be key in making the vision of 1000s of appchains
as the same developer tooling is available for all EVM chains. a reality. AltLayer, Conduit, and Eclipse are burgeoning solutions
Arbitrum became the first rollup to surpass Ethereum Mainnet
here.
in daily activity. Arbitrum also launched a beta version of an L3
Owing to the rapid growth of Arbitrum, Optimism, OP stack chains,
scaling solution called Arbitrum Orbit – a product offering allowing
and other L2s like Mantle, Ethereum layer 2 activity continues to In other words:
anyone to create and own a self-managed Arbitrum Rollup (will
increase throughout the bear market. No infra player has won the battle for ubiquitous liquidity. Therefore,
settle on One, Nova, or Goerli).
liquidity is fragmented.
Optimism and the Superchain The Layer 1 Competitive Landscape
In 2023, the OP Stack and the Superchain have gone from an Ecosystems like Cosmos have gained ground with their bluechip Crypto Beyond 2023
ambitious vision to a reality. appchains like dYdX nearing mainnet launch, whereas we’re
From time to time, ideas and philosophies emerge, potentially
seeing a resurgence in the Solana DeFi ecosystem and real-world
changing how things are done in crypto. Here are some concepts
Superchain is Optimism’s vision for the future, where Optimism
Powered by Li.Fi https://li.fi/

for crypto in 2023 that are being worked on: a catch-all anymore) is a large group of infra players creating
isolated silos of tokens, programming languages, and developers.
• Storage proofs – By leveraging zk technology and smart
Third party-bridges like LayerZero and Axelar are attempting to
contracts, storage proofs verify the state of one chain on
become the HTTPS of crypto. Liquidity
another without transmitting messages between them.
Checkout teams like Axiom, Lagrange, and Herodotus
• Intents – The idea is to allow users to express their intentions,

leaving the protocols to figure out how to achieve them.
At a small scale, CoW Swap, UniswapX, and LI.FI are first-
generation intent protocols for limit orders. One might want
Philipp Zentner,
to follow Suave, Essential, and Anoma closely.
CEO Li.Fi
• Shared Sequencers – Having a shared resource responsible
for ordering transactions of a set of rollups can significantly
enhance the potential for MEV (Miner Extractable Value)
optimization through the strategic ordering, reordering, and
insertion of transactions within batches. This topic is complex.
Espresso and Astria are currently the thought leaders here.
• New age liquidity networks – Emerging liquidity networks,

such as Khalani and Catalyst, represent a new age of scalability
and interoperability. These new players are native multi-chain
solutions.
Why LI.FI as an Aggregators Is Positioned Perfectly
The future is multi-chain. Liquidity and infrastructure will continue

to fragment, and developers and companies need a solution to
work with crypto without having to set up a whole research team
to keep their go-to-market short, fast prototyping, and low costs.
On top of this, the integration- and maintenance overhead and
having fail safety are things not to underestimate.
No bridge can extend to match the multi-chain demand, and emerging

technologies do not disrupt aggregators like LI.FI, they make their
positioning stronger.
As an aggregator LI.FI is evolving into a DeFi platform that offers far

more than bridge aggregation. Over 100 DeFi projects and TradFi
institutions are relying on LI.FI to stay updated with the rapid
ecosystem changes and launch new crypto-enabled businesses.
Powered by Li.Fi https://li.fi/

THE FUTURE OF MONEY AND THE POWER OF

BLOCKCHAIN ANALYTICS
The emergence of crypto assets in recent years has rapidly led regulators Blockchain analytics tools are instrumental in identifying and mitigating Automation and Integration: The ideal solution automates the risk
to define best-practice guidelines and establish an increasingly clear risks associated with digital assets. They detect suspicious activities AML screening process, including automated transaction monitoring,
regulatory framework. The EU’s vote on the “Markets in Crypto-Assets that could be tied to money laundering or terrorism financing, enabling risk scoring, and reporting. Integrating the solution into existing
Regulation” (MiCA) and its gradual implementation over the upcoming companies to take proactive measures such as freezing high-risk infrastructure and platforms such as FIAT AML, Custody solution, KYC,
months is a significant step forward for the ecosystem. In Germany, transactions. These tools protect companies and safeguard customers or Travel Rule systems should be possible to enable a holistic end-to-
BaFin has assumed the primary regulatory role for digital assets, from the potential misuse of pseudo-anonymous digital assets. end compliance solution.
whereas, in the US, the SEC is in the process of clarifying the rules of
the game for crypto players. An important aspect of crypto regulation is In addition to risk mitigation, these analytics tools simplify the The Crypto Market in Germany and Scorechain’s
the implementation of AML/CFT (anti-money laundering and counter- compliance process and adapt to the evolving regulatory landscape.
Presence
financing of terrorism) procedures, which Blockchain Analytics now They help compliance teams easily distinguish between legitimate
and suspect transactions, facilitate in-depth investigations of flagged The power of cryptocurrency is undeniable, but it also brings unique
offers with Know-Your-Transaction (KYT) solutions. These analytics also
activities, and streamline the reporting process. This is particularly challenges for regulators and crypto businesses. With this trend,
play an important role in identifying market abuse and monitoring the
important in the context of constantly changing global sanctions, Germany has become a pivotal hub for both regional and international
overall activities of Virtual Asset Service Providers (VASPs).
where real-time screening is essential. Various regulatory bodies players, encompassing cryptocurrency companies, traditional financial
like the Financial Action Task Force (FATF), the Travel Rule for Crypto institutions, and banks entering the market. Regulatory oversight led
Understanding Blockchain Analytics
Assets, and the Markets in Crypto-Assets (MiCA) continue to develop by BaFin has fostered the development of a solid digital asset market
Blockchain analytics is the process of simplifying the reading of in the country. Germany’s commitment extends to issuing licenses for
regulations that mandate Virtual Asset Service Providers (VASPs)
blockchains through the identification and deanonymization of their securing digital assets, catering to a diverse array of participants, which
to implement comprehensive AML/CFT measures, including risk
data. It enhances operational efficiency by facilitating transaction can be seen from the growing number of digital asset custody licenses.
assessment, customer due diligence, and suspicious activity reporting.
monitoring and risk assessment, ensuring compliance with regulations This increase underscores Germany’s efforts to foster a secure
across different countries. ecosystem for managing digital assets and instilling investor trust.
Choosing the Right Blockchain Analytics Solution
While cryptocurrency transactions are visible to all, grasping the Customization: A suitable Blockchain analytics solution should allow Besides our strong presence in France and Switzerland, Germany is
intricate network of interactions between digital wallets can still be the potential customization to align with specific risk assessment and becoming another key market for us, evidenced by our expanding
challenging. regulatory requirements. customer base within the country. The natural geographic proximity
Real-time Monitoring: The solution should offer real-time monitoring of our headquarters in Luxembourg, a native German-speaking team,
Blockchain Analytics uses advanced algorithms to read blockchain
capabilities to immediately detect all suspicious activities and swiftly and the fact that components of our infrastructure are being operated
data and reveal connections between addresses, assisting compliance
respond to prevent potential losses and secure businesses. in Germany makes Scorechain an ideal partner for our German clients.
teams in risk assessment.
Regulatory Compliance: The solution provider should possess a At Scorechain, we are enthusiastic about assisting crypto businesses
Importance of Blockchain Analytics comprehensive grasp of worldwide AML regulations and provide tools in navigating the dynamic landscape, ensuring
As more countries enforce AML/CFT regulations on cryptocurrencies, that facilitate adherence to these rules. The ideal solution will always compliance, and fostering the growth of a secure
Blockchain analytics tools play an active role in implementing regulatory align with the applicable AML regulations and guidelines. and responsible cryptocurrency ecosystem..
frameworks by supporting crypto businesses and financial institutions User Interface: For efficient compliance, tasks like monitoring
in meeting all requirements, covering risk management, due diligence, transactions, defining rules, and setting up risk alerts should be
reporting, and more.
Frank Harzhein
streamlined. An intuitive, easy-to-use interface is essential for
Head of Sales and Marketing, Scorechain S.A.
simplifying these activities.
Powered by Scorechain https://www.scorechain.com/

05
BLOCKCHAIN
INDUSTRY &
COMPANY
OVERVIEW
40 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 05. GERMAN BLOCKCHAIN INDUSTRY AND COMPANY OVERVIEW
Germany Blockchain E
Industry and
ERS BLOC
TAV K
NETW CHAI
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N FT KS
G,
IN
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Company Overview
G C
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A
D ES
Y
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&
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This section profiles German blockchain companies that have successfully
P
LO
secured funding during our study period, delving into their business
E VE
objectives and underscoring their national relevance in the blockchain
&D
DAT
industry.
URE
A MA
INFRASTRUCT
NAGEMENT, VERIFIC
*Businesses in this section are organized first by the alphabetical order of their GERMANY FUNDED
industry categories, and then sorted in descending order based on the funds BLOCKCHAIN
they have raised during our specified period. COMPANIES
Q3 ‘22 - Q2 ‘23
AT
LTH
ION
EA
&A
H
AL N
YT
IC
S
DEFI
01
Blockchain Networks
Blockchain networks refer to decentralized digital ledgers that use cryptographic techniques to record and secure transactions across multiple participants. These networks can be public, private, or consortium-based, and they enable
secure and transparent peer-to-peer transactions without the need for intermediaries. These networks find utility beyond transactions, bringing trust, security, and efficiency to various sectors
Matter Labs Matter Labs, headquartered in Berlin, stands as a beacon of innovation in the blockchain domain and is recognized as one of the fastest-growing companies in Germany in 2023. With a specialized focus $258,000,000
on developing and implementing zero-knowledge proofs (ZKPs), Matter Labs has positioned themselves at the forefront of the blockchain revolution. These proofs allow one party to prove to another that ALL TIME FUNDING
a statement is true without revealing any specific information about the statement. Leveraging this technology, their zkSync offers a layer-2 scaling solution for Ethereum, making transactions more cost-
effective and accessible. Matter Labs has also introduced concepts like Hyperchains, further solidifying their position as innovators in the space. Recently, Matter Labs secured a significant $200m Series
C funding to further accelerate the zkSync mission and its various growth initiatives. This funding round, co-led by Blockchain Capital and Dragonfly Capital, with participation from Lightspeed Venture $200,000,000
TOTAL FUNDING DURING PERIOD
Partners, Andreessen Horowitz, Coinbase, and others, brings their total funding for the zkSync mission to $258m. Their collaboration with AMD and other Web 3 firms in a $7m contest further underscores
Founded: their commitment to advancing zero-knowledge cryptography. With zkSync, Matter Labs aims to address the trilemma of scalability, security, and decentralization that plagues many blockchain platforms.
2018 Their partnership with Ankr to launch dedicated zkSync Era nodes and Hyperchain blockchain solutions on the Microsoft Azure Marketplace is a testament to their drive for Web3 development growth $200,000,000
and enterprise adoption. Many projects have integrated onto the zkSync network, including decentralized protocols and apps such as Chainlink, Uniswap, Aave, SushiSwap, Gnosis and Curve. In the heart LAST DEAL SIZE
Last Deal date:
of Germany’s thriving tech scene, Matter Labs has carved a niche for itself, contributing significantly to the nation’s blockchain advancements. Their recent activities, such as the launch of zkSync 2.0 and
16 November collaborations with global entities, underscore their commitment to pushing the boundaries of blockchain technology. Being an integral part of this ecosystem, Matter Labs actively engages in community
2022 education, sharing insights through blogs, research papers, and community interactions. Their strategic vision for the upcoming years is clear: to further the adoption of ZKPs, drive blockchain scalability, Later Stage VC
and foster a more decentralized, efficient, and secure digital future. LAST DEAL TYPE
Evmos $27,000,000
Evmos is a German-based blockchain company that has made significant strides in bridging the Ethereum and Cosmos ecosystems. The company’s platform is designed to ALL TIME FUNDING
expand the Ethereum Virtual Machine (EVM) functionality by enabling cross-chain applications. This allows developers to tap into multiple blockchain ecosystems’ liquidity and
user bases, offering more unified experiences through interoperability, novel token economics, and in-protocol incentives. Evmos raised $27m in seed funding led by Polychain
Capital in November 2022 to accelerate the growth of its ecosystem of interoperable decentralized applications.
$27,000,000
Founded: In Germany, a country increasingly recognized for its blockchain innovation, Evmos stands out for its focus on bridging two major blockchain ecosystems: Ethereum and
2021 Cosmos. Despite initial setbacks, including a bug-ridden launch that led to community backlash, the company has shown resilience and is working on resolving these issues $27,000,000
Last Deal date: for a functional second launch. The setbacks have not deterred investors or the community, as evidenced by the company’s recent funding round led by Polychain Capital. By LAST DEAL SIZE
2 November 2022 overcoming these challenges and securing significant investment, Evmos is not only contributing to blockchain technology but is also shaping how Germany participates in this
global, interconnected blockchain landscape. Seed Round
LAST DEAL TYPE
Natix Natix Network, an initiative by the German blockchain company Natix, is a testament to decentralized technology’s transformative power. This network is a decentralized $3,640,000
assembly of cameras aiming to create real-time maps of cities globally. By harnessing blockchain capabilities, Natix Network imbues regular consumer devices like mobile ALL TIME FUNDING
phones with AI models, collecting valuable data that users can monetize while maintaining full privacy. Natix raised a $3.5m seed round in April 2023.
$3,500,000
The Drive& app, a prominent offering from Natix Network, has seen rapid adoption, with users mapping significant stretches of roads in a short span. With over 10,000 TOTAL FUNDING DURING PERIOD
users installing its Drive& drive-to-earn app in less than three weeks since its launch and mapping over 1 million kilometers of roads, the company’s impact is evident. When
Founded:
compared to data from 11 weeks post-launch of other prominent mapping entities, Natix Network has mapped 3 times more than Google, 8.6 times more than Mapillary,
2019 and 6.6 times more than Hivemapper, showcasing the rapid adoption and significant impact of their Drive& app. Furthermore, their collaboration with peaq, a Web3 network,
$3,500,000
Last Deal date: LAST DEAL SIZE
underscores their commitment to enhancing the Economy of Things, a decentralized network economy converging the Internet of Things with Web3 and AI. In an era marked
13 April 2023 by heightened data sensitivity, Natix’s unwavering commitment to privacy positions it as a visionary in Germany’s blockchain landscape, establishing new standards in AI-driven
decentralized networks. Seed Round
LAST DEAL TYPE
02
Custody & Exchanges

Custody and exchange platforms play a pivotal role in the blockchain ecosystem, providing secure storage, management, and trading of digital assets such as cryptocurrencies and tokens. Custody services ensure the safekeeping of
assets, exchanges create marketplaces for trading, and wallets enable users to manage and transfer assets securely. These platforms empower users to buy, sell, exchange, and hold digital assets, contributing to the accessibility and
growth of the blockchain landscape.
Tradar (Brokerage)
Tradar, operated by MFC Labs, is a company focused on transforming investment dynamics through its platform. Specializing in football player tokenization, Tradar offers
$5,720,000
ALL TIME FUNDING
fans a distinctive opportunity to invest in officially licensed player tokens. These tokens are intricately linked to player performance and market valuation, introducing a novel
avenue for investors to leverage players’ achievements for potential financial gains. The concept of “player signings’’ adds an element of excitement to the investment process,
as time-bound trading windows release batches of player tokens, creating dynamic trading opportunities that capitalize on players’ successes and market trends. The company $4,320,000
recently raised €4m of angel funding.
Founded:
2021 Within the German market, Tradar’s platform aligns with the nation’s growing tech landscape, contributing to technological advancements. By facilitating financial engagement $4,320,000
Last Deal date: between fans and football, Tradar combines sports enthusiasm with investment innovation. This intersection not only reflects the dynamic spirit of the German market but also LAST DEAL SIZE
22 June 2023 underscores Tradar’s role as a solution emerging from within the country. As fans explore the opportunity to invest in officially licensed player tokens, Tradar’s contribution to
the evolving landscape of sports investment finds resonance within the German market. Angel (Individual)
LAST DEAL TYPE
03
Data Management, Verification, & Analytics

This sector utilizes blockchain technology to ensure secure, tamper-proof data storage, verification, and analysis. By leveraging blockchain’s immutability, data integrity and authenticity are enhanced, while smart contracts enable
automated validation processes. These solutions provide reliable insights, serving industries beyond businesses, and empowering data-driven decision-making by offering innovative and trustworthy means to manage, verify, and derive
value from data.
Violet $18,500,000
ALL TIME FUNDING
Violet is at the forefront of reshaping digital identity verification in the blockchain space. With their headquarters in Germany, they’ve developed a robust platform that
emphasizes privacy-preserving, reusable on-chain compliance. Their technology allows users to prove their authenticity without revealing sensitive identity data, ensuring
secure and private interactions within the decentralized web. Violet’s offerings span from reusable know-your-customer and business procedures, continuous sanctions checks
$15,000,000
against major global lists, to comprehensive blockchain analytics screening, all while preserving on-chain anonymity. Their commitment to enhancing user privacy and security
Founded: in the digital age is evident in their innovative solutions.
2021 $15,000,000
Last Deal date: Their recent $15m funding round highlights the industry’s confidence in their vision and potential to be a significant player in Germany’s blockchain-driven digital identity LAST DEAL SIZE
9 March 2023 landscape.

Early Stage VC
LAST DEAL TYPE
Blocktorch
Blocktorch, having recently raised $4.63m during a seed round in May 2023, is a provider of end-to-end observability solutions. Blocktorch empowers engineering teams to
$4,630,000
ALL TIME FUNDING
drive productivity, data-driven decision-making, and scalability for decentralized applications (dApps). By leveraging advanced tools, including a query engine, log explorer,
dashboards, monitors, and service level objectives, Blocktorch facilitates the exploration, analysis, and visualization of decentralized application data. This innovative
platform equips users with valuable insights, enabling them to understand their dApps’ performance and behavior comprehensively. By ensuring data accuracy, security, and $4,630,000
transparency through blockchain technology, Blocktorch enhances the efficiency and reliability of modern software systems.
Founded:
2022 Blocktorch offers crucial observability capabilities to support decentralized applications’ growth. The company’s mission aligns with the broader trend of harnessing $4,630,000
Last Deal date: blockchain’s potential to ensure secure data management and analysis. Moreover, the company’s compatibility with various blockchains, including Ethereum, Polygon, and LAST DEAL SIZE
9 May 2023 BNB Chain, highlights its commitment to cross-chain observability. As the German blockchain landscape continues to evolve, Blocktorch’s innovative solutions contribute to
advancing the integrity, transparency, and efficiency of decentralized applications across different blockchain networks. Seed Round
LAST DEAL TYPE
Blockbrain $2,610,000
ALL TIME FUNDING
Blockbrain, based in Stuttgart, specializes in blockchain security solutions. The company raised a $2.61m seed round in December 2022 to provide an anti-threat system for
cryptocurrency wallets, which monitors blockchain transactions. Additionally, their off-chain security measures involve identifying potential risks by comprehensively analyzing
social sentiment, news articles, and community feedback. To keep users informed, Blockbrain offers real-time personalized alerts about potential threats or changes related to $2,610,000
their assets. TOTAL FUNDING DURING PERIOD
Founded:
2022 Their security solutions address the growing concerns of digital asset protection, making blockchain interactions safer and more reliable. By bridging the gap between on-chain $2,610,000
Last Deal date: activities and off-chain influences, Blockbrain provides a holistic security approach, catering to individual users and businesses navigating the complexities of the blockchain LAST DEAL SIZE
16 December world.
2022 Seed Round

LAST DEAL TYPE
Certif-ID $1,600,000
Certif-ID recently raised a $1.6m seed round in April 2023 in their mission to reshape the landscape of digital certification and talent sourcing. At its core, Certif-ID offers ALL TIME FUNDING
a decentralized platform that empowers educational institutions to issue tamper-proof digital certificates, ensuring the authenticity and verifiability of a candidate’s
qualifications and skills. Their product, CredSure, stands as a testament to this, providing institutions with the tools to issue digital certificates that are both transparent
and secure. Additionally, with TalentSure, Certif-ID bridges the gap between international talent and job opportunities in Germany, supporting candidates throughout the
$1,600,000
application and placement process. This dual approach not only enhances the credibility of educational qualifications but also streamlines the talent acquisition process,
Founded: especially for the German market.
2020 $1,600,000
Last Deal date: In the broader context of the blockchain industry in Germany, Certif-ID’s contributions are significant. Their collaboration with UNESCO and involvement in the Global LAST DEAL SIZE
6 April 2023 Education Coalition highlight their commitment to elevating education and employment standards on a global scale. Furthermore, their partnership with Apollo Hospitals
Group to train and source nurses for the German healthcare sector underscores their dedication to addressing skill shortages through innovative, blockchain-driven solutions. Seed Round
LAST DEAL TYPE
ChainPatrol $500,000
ALL TIME FUNDING
Located in Berlin, Germany, ChainPatrol is a leading entity in the Web3 security landscape, dedicated to safeguarding communities and brands from scam attacks in the
decentralized digital realm. Their platform provides a protective shield for crypto wallets, ensuring users are alerted about potential malicious entities and transactions. $500,000
Notably, in their recent funding round, ChainPatrol secured $500k to bolster their security solutions further. TOTAL FUNDING DURING PERIOD
Founded:
ChainPatrol’s commitment to user-focused security stands out. Their approach centers on preemptively identifying blocking scams and ensuring users are insulated from
2022 harmful actions. Their initiative in curating a blocklist further underscores their dedication, warning users of potential scam URLs or risky asset transfers. As ChainPatrol
$500,000
continues its innovative journey, its pivotal role in enhancing security within Germany’s blockchain ecosystem is undeniable.
15 February 2023
Accelerator/Incubator
LAST DEAL TYPE
Comoon $170,000
Comoon is a Berlin-based blockchain startup established in 2022. The company offers no-code analytics solutions tailored for Web3 communities, aiming to simplify the ALL TIME FUNDING
complexities of managing these communities. Their platform captures and structures data from both blockchain and social platforms, making it easily accessible for non-
technical users such as community managers. The platform empowers community builders to grow and engage their communities more effectively while eliminating repetitive $170,000
tasks. TOTAL FUNDING DURING PERIOD
Founded:
Comoon has secured $100k in seed funding led by Antler. This financial backing will be used to develop their no-code analytics platform further. In Germany, where there is a
2022 growing focus on digital transformation and decentralized technologies, Comoon’s platform is particularly relevant. It addresses the needs of community-led Web3 businesses, $170,000
which are becoming increasingly important in Germany’s efforts to become a leader in blockchain technology and decentralized governance. The company’s platform offers a
8 August 2022 localized solution to help German Web3 communities optimize their operations and engagement, thereby contributing to the country’s broader blockchain initiatives.
Seed Round
LAST DEAL TYPE
Coinscale
$130,000
ALL TIME FUNDING
Coinscale, having raised a $130k funding round, introduces an AI-powered crypto trading platform, leveraging real-time analysis and advanced machine learning for intelligent
$130,000
trading decisions in the dynamic cryptocurrency market. The platform’s AI models utilize comprehensive technical analysis and robust risk management tools to formulate
Founded:
effective trading strategies. Coinscale’s approach involves processing vast data points and selecting top-performing AI models for real trades. With blockchain integration, the
platform ensures transparent and secure trading data, enhancing credibility. Coinscale presents a synergy of AI and blockchain, empowering users with precise insights for
N/A $130,000
confident crypto trading.
20 June 2023
Early Stage VC
LAST DEAL TYPE
Xylene $130,000
Founded in 2019 in Reutlingen, Germany, Xylene specializes in supply chain transparency solutions. The company raised $130k from an accelerator round and offers ALL TIME FUNDING
a comprehensive solution tailored for producers and importers of regulated raw materials. By leveraging satellite navigation and Earth monitoring, combined with the
immutability of blockchain, Xylene offers an approach that encompasses supply chain mapping, risk assessment, and product flow traceability. This combination ensures $130,000
accurate real-time tracking, with the blockchain providing a tamper-proof and transparent record. While their solutions have been applied in the timber and fashion sectors, TOTAL FUNDING DURING PERIOD
the technology’s adaptability suggests potential use across various industries requiring robust supply chain transparency.
Founded:
2019 Their focus on enhancing supply chain transparency aligns with European legal frameworks, such as the European Union Timber Regulation. By validating wood origins and
$130,000
LAST DEAL SIZE
Last Deal date: ensuring adherence to legislations and certifications, Xylene supports sustainable forestry practices. Additionally, Xylene’s participation in diverse industry events, challenges,
20 December and accelerator programs highlights its commitment to innovation and collaboration.
2022 Accelerator/Incubator
LAST DEAL TYPE
04
Defi
Decentralized Finance (DeFi) is a transformative movement within the financial sector that leverages public, permissionless blockchains to provide a range of financial products and services. By eliminating the need for traditional
intermediaries, DeFi offers an open, accessible, and efficient ecosystem for activities such as lending, borrowing, trading, and tokenization. These sub-sectors empower individuals to engage in financial transactions directly with
one another, fostering greater financial inclusion and control. The underlying blockchain technology ensures transparency, security, and automation of processes, while smart contracts play a central role in executing and enforcing
agreements. Through DeFi, traditional financial services are being reimagined and democratized, enabling a more decentralized and user-centric approach to managing and growing wealth.
M^ZERO Labs $22,500,000

ALL TIME FUNDING
M^ZERO Labs is developing advanced infrastructure for digital asset value transfer. With a notable seed funding of $22.5m, they aim to bridge the traditional financial system
with decentralized applications, ensuring a seamless flow of payments. Positioned as an infrastructural overlay on Ethereum, M^ZERO Labs seeks to facilitate the exchange $22,500,000
of value for major asset and liquidity providers globally. Their emphasis on permissionless currency minting and commitment to virtuous governance underscores their TOTAL FUNDING DURING PERIOD
dedication to creating a decentralized financial ecosystem.
Founded:
2023 $22,500,000
Situated in Berlin, a recognized tech hub, M^ZERO Labs is making strides within Germany’s vibrant blockchain industry. Their collaboration with esteemed investors like
LAST DEAL SIZE
Last Deal date:
Pantera Capital and their anticipated launch by year-end further accentuate their growing stature in the German and global DeFi sectors.
5 April 2023
Seed Round
LAST DEAL TYPE
Li.Fi
Li.Fi is actively involved in developing cross-chain interoperability solutions. Its platform facilitates a seamless cross-chain bridge and decentralized exchange aggregation
$23,000,000
ALL TIME FUNDING
mechanism geared towards bolstering the capabilities of emerging DeFi projects. The incorporation of its advanced widget and software development kit enables cross-chain
activities such as bridging, swapping, and messaging, all within the framework of a comprehensive multi-chain strategy.
$23,000,000
Li.Fi’s strategic vision effectively addresses the pressing requirement for improved user experiences and accessibility within the DeFi sector. By streamlining interactions across
Founded: diverse blockchain networks, developers can focus on honing their unique value propositions without the hindrance of interoperability complexities. Li.Fi’s contributions
2021 are instrumental in shaping the evolving landscape of DeFi by providing a foundational bridge for projects to transcend the constraints imposed by different blockchains. $17,500,000
Last Deal date: Noteworthy collaborations with entities like Vybe, Alpha Vault, Planet IX, SpiritSwap, and Perpetual Protocol underscore Li.Fi’s standing and significance within the blockchain LAST DEAL SIZE
13 April 2023 domain. With a $17.5m Series A venture funding round enhancing its capabilities, Li.Fi’s dedication to robust and secure cross-chain solutions solidifies its position as a driving
force in advancing DeFi innovation within Germany’s vibrant blockchain ecosystem. Early Stage VC
LAST DEAL TYPE
Ultimate (Unstoppable $17,900,000

Finance) Unstoppable Finance is a Germany-based fintech firm specializing in decentralized finance (DeFi). The company secured €12.5m in a Series A financing round led by Lightspeed
ALL TIME FUNDING
Venture Partners. Ultimate Wallet is a key product developed by Unstoppable Finance to simplify access to various DeFi protocols. This self-custody mobile app supports
trading through the Orca exchange, liquid staking via Lido Finance, and higher yields with Friktion Finance. As of May 2023, the app is live on iOS and Android, supporting
Solana, Ethereum, and Bitcoin networks. It offers zero fees for token swaps and features a cloud backup option for enhanced security. $12,700,000
Founded: Unstoppable Finance and its Ultimate Wallet are strategically positioned in Germany, a country with a growing focus on blockchain technology and decentralized finance. They
2021 announced the launch of Europe’s first MICA-compliant DeFi bank & stablecoin, showcasing their commitment to compliance. The app aims to make DeFi more accessible to $12,700,000
Last Deal date: mainstream users in Germany, aligning with the nation’s broader fintech and blockchain initiatives. The pre-registration of around 300,000 users for the app, combined with LAST DEAL SIZE
10 August 2022 Germany’s evolving focus on DeFi, suggests that Ultimate Wallet has the potential to contribute meaningfully to the country’s DeFi landscape and the global DeFi landscape at
large.
Early Stage VC
LAST DEAL TYPE
Cashlink $13,440,000
Cashlink is a German fintech company based in Frankfurt, specializing in blockchain-driven asset tokenization solutions. Their platform facilitates the digitization and ALL TIME FUNDING
tokenization of various assets, encompassing real estate, collectibles, sustainability-oriented projects, and alternative financing products. Utilizing blockchain’s capabilities,
Cashlink’s integrated solution prioritizes secure and compliant asset tokenization with the goal of expanding access to investment opportunities. Key components of their $7,570,000
services include the Investment Platform API and Registry-as-a-Service API, which empower businesses to streamline asset tokenization processes. TOTAL FUNDING DURING PERIOD
Founded:
With a commitment to aligning electronic securities with regulatory standards, Cashlink operates in accordance with Germany’s Electronic Securities Act (eWpG), underlining
2016 a dedication to innovation within legal parameters. The company’s collaborative strategy is evident in partnerships like Tangany. An expansion of a €7m Series A funding
$7,570,000
round, led by TX Ventures, highlights Cashlink’s relevance in the fintech landscape. Positioned at the forefront of blockchain-based asset tokenization, Cashlink significantly
27 June 2023 contributes to Germany’s evolving blockchain sector, envisioning a future marked by more inclusive and efficient financial markets.
Later Stage VC
LAST DEAL TYPE
RealPort $5,040,000
ALL TIME FUNDING
RealPort is a blockchain company specializing in the tokenization of tangible assets, particularly in the renewable energy sector. The company raised €5m and aims to
democratize investment in renewable energy projects by offering a blockchain-based platform that enables fractional ownership in the projects. This approach makes it easier
for individual investors to participate and accelerates the funding process for renewable energy projects. RealPort’s platform is designed to be both transparent and secure, $5,040,000
leveraging blockchain technology to ensure the integrity of transactions and asset ownership. TOTAL FUNDING DURING PERIOD
Founded:
2018 In the context of Germany’s focus on sustainable energy and digital transformation, RealPort’s offering is particularly relevant. The company has been involved in discussions $5,040,000
Last Deal date: about the impact of inflation on the renewables sector, indicating a deep understanding of market dynamics. Their platform serves as a conduit for individual and institutional LAST DEAL SIZE
5 September investors to engage in renewable energy projects, thereby contributing to Germany’s broader sustainability goals.
2022 Early Stage VC

LAST DEAL TYPE
Centrifuge
Centrifuge operates at the intersection of DeFi and traditional finance, offering a platform that facilitates tokenizing and financing real-world assets such as invoices, $15,810,000
mortgages, and streaming royalties. Asset Originators can tokenize these assets into Non-Fungible Tokens (NFTs) and utilize them as collateral in Centrifuge pools, which are ALL TIME FUNDING
open, smart-contract-based financing platforms. Tinlake, a core product of Centrifuge, serves as its decentralized asset financing protocol, allowing these tokenized assets to
be used to access liquidity. These pools ensure a continuous liquidity source for Asset Originators while offering flexibility for investors. Centrifuge’s role in structured credit $4,000,000
mirrors the traditional finance securitization process, pooling similar assets and offering tranching options for users. The company recently secured a $4m funding round, with TOTAL FUNDING DURING PERIOD
Founded: participation from entities such as Coinbase Ventures.
2017 $4,000,000
Last Deal date:
Based in Berlin, Centrifuge emerged as a beacon of innovation, leveraging the nation’s technological prowess and forward-thinking approach to blockchain adoption. Their
LAST DEAL SIZE
recent endeavors, including the introduction of Centrifuge pools and collaborations with major DeFi platforms like Maker and Aave, underscore their commitment to driving
2 November 2022
blockchain’s real-world applications. In December 2022, Centrifuge launched a significant initiative, a $220m fund with BlockTower Credit and MakerDAO, aimed at bringing
institutional credit on-chain. As the company continues to evolve, its focus on integrating real-world assets with decentralized finance, especially through the tokenization of Later Stage VC
assets, signals a promising trajectory for the future. LAST DEAL TYPE
Pile Capital $2,810,000

ALL TIME FUNDING
Berlin-based Pile Capital is a Neo Treasury Management Platform designed to help businesses manage and diversify their capital by offering a robust API platform designed to
simplify the integration of cryptocurrency services into existing fintech solutions. For example, if a neobank wants to launch crypto wallets, Pile’s API handles the complex legal
aspects associated with smart contracts. The company recently raised €2.8m in a pre-seed funding round led by Female Innovators Lab by Barclays and Anthemis, aiming to $2,810,000
develop its technology further and expand its offerings. TOTAL FUNDING DURING PERIOD
Founded:
2022
Pile is in the process of obtaining the necessary licenses to operate as a Financial Institution in Germany and other European nations to enable faster international payment $2,810,000
gateways and even the option to pay salaries in crypto. The company is working on going live with pilot customers in different countries, including Germany, where its API LAST DEAL SIZE
Last Deal date:
solutions can significantly contribute to the evolving fintech landscape. The launch is anticipated to happen soon, adding a new dimension to Germany’s already diverse fintech
9 September ecosystem.
2022 Seed Round
LAST DEAL TYPE
Finexity Finexity is reshaping investment paradigms via tokenization. Bridging finance and technology, the platform champions fractional ownership and accessibility to varied $7,530,000
alternative investments. Spanning real estate, art, fine wine, classic cars, diamonds, renewables, watches, string instruments, and private equity, Finexity empowers investors ALL TIME FUNDING
through tokenized assets, realizing its mission of democratizing investment in previously untapped sectors. Finexity’s innovative platform revolutionizes investments via
blockchain-backed fractional ownership. The company is making significant strides after concluding two funding rounds within the past year - an early-stage round of $1.1m,
$3,470,000
followed by a later-stage Series C round of $2.5m. Furthermore, reports indicate that the company is actively raising €25m in Series A venture funding from Projekte Partner
and other undisclosed investors, with the funding process initiated on June 27, 2023, and the round set to conclude by December 31, 2023.
Founded:
2018 Finexity emerges as a notable contributor within Germany’s vibrant blockchain ecosystem, bolstered by collaborations with German financial giants like Steubing and $2,530,000
Last Deal date: Sparkasse, which underscore its role in fintech and blockchain. Launching a tokenized investment marketplace further cements its position as a frontrunner in financial LAST DEAL SIZE
30 May 2023 technology. By offering an extensive range of investment avenues, from real estate to collectibles, Finexity shapes Germany’s blockchain landscape. Its commitment to
transparency, due diligence, and innovation sets a benchmark for ethical tech-driven financial services in the country. Finexity’s collaborations and innovative approach Later Stage VC
highlight its significance within Germany’s blockchain and fintech domain. LAST DEAL TYPE
Greentrade $1,760,000
Founded in 2022, GreenTrade is a Berlin-based company committed to mitigating climate change by attempting to facilitate the offsetting of one billion tonnes of CO2 by 2030. ALL TIME FUNDING
The company operates a blockchain-based marketplace specializing in the “forward financing” of carbon credits and impact claims. This model allows project developers to
receive upfront financing for future carbon credits. By recording the creation and transactions of carbon credits on a blockchain, GreenTrade ensures enhanced transparency $1,050,000
and data integrity, enabling corporate buyers to fulfill their Net Zero commitments confidently. TOTAL FUNDING DURING PERIOD
Founded:
In Germany, GreenTrade is making a significant impact by aligning with the country’s ambitious sustainability goals and Net Zero commitments. The company’s blockchain-
2021 based marketplace for carbon credits is particularly relevant for Germany’s manufacturing and energy sectors, which face increasing pressure to reduce their carbon footprint.
$1,050,000
GreenTrade recently secured a pre-seed funding round led by Cerulean Ventures, totaling $1.05m. This capital will be channeled into accelerating the company’s efforts in
1 August 2022 these key sectors, contributing to Germany’s climate change mitigation strategy.
Seed Round
LAST DEAL TYPE
05
Health
The “Health” sector encompasses businesses that leverage blockchain and cryptocurrency technology to address critical issues within both public and private healthcare domains. By harnessing the power of blockchain’s secure,
decentralized ledger, these endeavors aim to enhance data privacy, improve interoperability, ensure the integrity of medical records, and facilitate secure patient identity management. Examples include streamlining electronic health
record systems, ensuring compliant data sharing among medical institutions, and enabling patients to have greater control over their health data while maintaining privacy and security. Through these innovative solutions, the health
sector is advancing toward a more transparent, efficient, and patient-centric healthcare ecosystem.
VitaDAO $4,600,000
ALL TIME FUNDING
VitaDAO stands at the intersection of decentralized finance (DeFi) and groundbreaking health research. As a decentralized autonomous organization, VitaDAO leverages
blockchain technology to collectively manage and fund scientific research in the field of longevity and aging. Their innovative approach empowers a global community of $4,600,000
stakeholders to have a say in the direction and management of critical research projects. By tokenizing intellectual property rights, they’re pioneering a new collaborative TOTAL FUNDING DURING PERIOD
research funding and governance model, ensuring that discoveries in the health domain are both transparent and accessible.
Founded:
2021 Based in Germany, they’re not only contributing to the country’s reputation as a hub for blockchain innovation but also reinforcing its status as a leader in medical and
$4,100,000
scientific research. Their unique blend of DeFi mechanisms and health-focused objectives showcases the transformative potential of blockchain across diverse sectors.
30 January 2023
Early Stage VC
LAST DEAL TYPE
06
Infrastructure & Developer Tools

Infrastructure and Developer Tools encompass the essential software, protocols, frameworks, and resources required for building and deploying blockchain applications. These components provide the technical foundation for creating
and operating blockchain networks and decentralized applications, facilitating smoother development processes, enhanced security measures, and seamless integration.
Februar $1,470,000
ALL TIME FUNDING
Februar, based in Berlin, specializes in developing payment infrastructure that facilitates transactions between traditional fiat currencies and crypto tokens. Co-founded in
2022 by Felix Harms and Marcel Katenhusen, the company secured €1.5m in a pre-seed funding round led by embedded/capital. Februar’s primary focus is on providing Web3 $1,470,000
projects, such as digital wallets and NFT platforms, with a streamlined payment infrastructure that complies with EU regulations. TOTAL FUNDING DURING PERIOD
Founded:
Februar aims to simplify the often complex Web3 transaction processes within Germany’s blockchain sector. The company’s understanding of Germany’s specific regulatory
2022 landscape allows it to offer EU-compliant financial solutions. This focus on compliance positions Februar as a key enabler in the German Web3 ecosystem, offering developers
$1,470,000
and end-users a transaction experience that aligns with regulatory requirements.
31 October 2022
Seed Round
LAST DEAL TYPE
SPYCE.5 $1,090,000
ALL TIME FUNDING
Spyce.5 raised €1m of angel funding with a focus on advancing blockchain technology within the IOTA and Shimmer networks, Spyce.5 introduces a Web3 platform designed
to streamline processes and enable frictionless data flow for developers and corporate entities. By tailoring enterprise networks to specific business needs and offering a
cloud-based Web3 platform complete with an array of tools ranging from data management to digital identity verification, Spyce.5 empowers clients to leverage the potential $1,090,000
of blockchain and Web3 technologies.
Founded:
2023 The company’s secure data spaces and digital identity project hold broad applications across sectors, including healthcare, finance, government, and supply chain $1,090,000
Last Deal date: management. Spyce.5 addresses the growing need for secure storage and sharing of sensitive information, integrating encryption, access controls, and blockchain-based user LAST DEAL SIZE
31 May 2023 authentication for heightened data security.

Angel (Individual)
LAST DEAL TYPE
Enefty $200,000
ALL TIME FUNDING
Berlin-based Enefty is a no-code platform developed by Enefty Technologies that empowers brands to create Web3-based loyalty memberships. The platform is designed
to seamlessly integrate both physical and digital experiences, thereby engaging audiences without the complexities often associated with Web3 technologies. The company
secured $200k in a Pre-Seed funding round in September 2022 to further develop its innovative NFT loyalty program solution. $200,000
Founded: Enefty aligns well with Germany’s focus on digital transformation and decentralized technologies. The platform’s unique approach to loyalty programs has found applications
2021 in the country’s hospitality sector. Specifically, Enefty collaborated with Spanish artist David Zuker to create 30 exclusive NFTs based on the bar’s ten signature cocktails at $200,000
Last Deal date: Germany’s highest bar, NFT Skybar in Frankfurt. These NFTs were available for purchase by bar guests. This collaboration not only adds a digital layer to the traditional bar LAST DEAL SIZE
1 September experience but also serves as a localized solution that highlights exciting use cases in Germany’s broader blockchain initiatives.
2022 Seed Round

LAST DEAL TYPE
Me Protocol $220,000
ALL TIME FUNDING
Me Protocol is revolutionizing the loyalty rewards landscape. Their blockchain infrastructure powers “Frictionless Open Rewards,” allowing instant redemption across any
brand or app connected to their platform. By seamlessly integrating with existing customer relationship management and loyalty software, Me Protocol ensures brands can $150,000
issue and manage rewards effortlessly while consumers enjoy a streamlined experience, free from the complexities of tokens or blockchains. Their innovative approach TOTAL FUNDING DURING PERIOD
Founded: to standardizing and enhancing the value of loyalty rewards is further validated by their recent seed funding from notable investors like Outlier Ventures and Blockchain
2022 Founders Group.
$150,000
Their commitment to providing a transparent, efficient, and user-centric rewards ecosystem is indicative of their potential to reshape loyalty programs in the digital age.
1 April 2023
Accelerator/Incubator
LAST DEAL TYPE
Whal3s $100,000
ALL TIME FUNDING
$100,000
Whal3s is a Web3 development company. However, due to a lack of information available, it is not possible to write a credible description for the company.
Founded:
2022 $100,000
21 September
2022 Seed Round
LAST DEAL TYPE
07
Gaming, NFTs, & Metaverse

Non-fungible tokens (NFTs), gaming, and metaverse constitute a paradigm shift in digital ownership and interaction, enabled by blockchain technology. NFTs are distinct digital assets that represent ownership of unique items, ranging
from digital art to in-game items, ensuring scarcity and provenance. Within the gaming realm, blockchain enhances player ownership and enables cross-game asset utilization. Meanwhile, metaverse encompasses interconnected virtual
spaces, fostering immersive social experiences, digital commerce, and new forms of work. By tapping into blockchain’s capabilities, these sectors innovate how we perceive and engage with digital content, unlocking novel economic and
creative possibilities
Otterspace $3,700,000
Otterspace is a Berlin-based blockchain company focused on enhancing Decentralized Autonomous Organization (DAO) governance. The Otterspace Protocol is a platform that ALL TIME FUNDING
allows for building out of use cases through the advent of non-transferable NFTs by awarding NFT “badges” to incentivize positive behavior within DAOs. These NFT badges are
built on the EIP-4973 interface and are earned for achieving specific goals or exhibiting desired behaviors. They cannot be traded or sold; they must be earned. The technology
operates on the Layer 2 solution, Optimism, and is preparing for Ethereum mainnet deployment. The business recently secured $3.7 million in pre-seed funding led by Cherry
$3,700,000
Crypto and Inflection.
Founded:
2022 In Germany, Otterspace’s governance model holds particular promise for the country’s growing number of DAOs or businesses that would benefit from a DAO structure, $3,700,000
Last Deal date: especially in sectors like renewable energy. While Energy Web, for example, is not a DAO, if it adopts such a structure, it could leverage Otterspace’s NFT badges to reward LAST DEAL SIZE
30 September members for positive behavior that contributes to sustainability goals. This would align individual actions with a collective sustainability mission, a significant feature in a
2022 nation aiming to lead in sustainable technologies and blockchain innovation. Seed Round
LAST DEAL TYPE
FANZONE.io $1,800,000
Fanzone.io is a Berlin-based company that specializes in offering Ethereum-based digital collectibles and NFTs (Non-Fungible Tokens) for sports fans. The company was ALL TIME FUNDING
Founded in 2020, with the platform launching in June 2021, gaining significant attention for its innovative approach to fan engagement. Fanzone.io allows users to collect, play
with, and trade digital collectibles of their favorite teams and athletes. The company has also made headlines for its charity initiatives, such as its collaboration with Viva con $1,800,000
Agua, a charity focused on providing access to clean drinking water and sanitation. TOTAL FUNDING DURING PERIOD
Founded:
The company has secured funding from notable investors, including Porsche Ventures, to accelerate its growth and product development. Leveraging innovative NFTs that
2020 $1,800,000
grant lifetime access to sports events and exclusive online forums, along with strategic collaborations with high-profile individuals and teams, Fanzone.io is poised to transform LAST DEAL SIZE
Last Deal date:
the landscape of sports fan engagement in Germany. The platform is particularly relevant in Germany, given the country’s strong sports culture and the growing interest in
19 September blockchain technology.
2022 Early Stage VC
LAST DEAL TYPE
B-Side Games
Founded in Germany, B-Side Games was a blockchain-based game development company that aimed to revolutionize the gaming industry by integrating blockchain
$200,000
ALL TIME FUNDING
technology into its products. Their flagship game, Chainmonsters, was a multiplayer online game that leveraged the Flow blockchain to offer a decentralized gaming
experience. Players could own, trade, and sell in-game assets as NFTs (Non-Fungible Tokens), providing a new level of ownership and engagement. The game captured
attention through its groundbreaking implementation of blockchain technology and strategically transitioned its funding model to Kickstarter to connect with a more diverse $110,000
audience. (Medium, Flow).
Founded:
2014 In Germany, a country with a strong gaming community and growing interest in blockchain technology, B-Side Games had the potential to be a game-changer. The integration $110,000
Last Deal date: of blockchain into gaming could have offered German gamers a new level of interaction and ownership, aligning with the country’s focus on technological innovation. However, LAST DEAL SIZE
1 October 2022 it’s worth noting that as of a recent update, B-Side Games has paused the development of Chainmonsters and appears to be no longer active, despite having raised an equity
crowd-funding round in Q4 2022. Equity Crowdfunding
LAST DEAL TYPE
Krowdz $100,000
Krowdz is a German-based blockchain company that has garnered attention for its innovative approach to disrupting traditional music distribution models. The company ALL TIME FUNDING
aims to create a more equitable ecosystem for artists and fans by tokenizing music-related assets. Krowdz’s platform offers a unique blend of features, including frictionless
onboarding of users, token-gated artist community pages, and a fan-to-earn rewards system. This multi-faceted approach has attracted investment, with the company raising $100,000
$100k in seed funding from Protocol Labs and Outlier Ventures after graduating from an Accelerator Program in late 2022. TOTAL FUNDING DURING PERIOD
Founded:
In the German blockchain landscape, Krowdz stands out for its focus on the digital music sector, a significant cultural and economic domain in the country. The company’s
2022 platform allows artists to create their own digital economy and ensures compliance with online community standards. Krowdz has further solidified its position by securing
$100,000
LAST DEAL SIZE
Last Deal date: an additional venture round from German-based X Ventures for an undisclosed amount. By offering a comprehensive suite of tools for both artists and fans and backed by
19 October 2022 strategic investments, Krowdz is positioning itself as a key player in Germany’s blockchain-enabled digital music transformation.
Seed Round
LAST DEAL TYPE
FROM NICHE TO MAINSTREAM: TACKLING DEFI’S OBSTACLES

IN THE RACE AGAINST CENTRALIZED EXCHANGES
Decentralized Finance (DeFi) is an ambitious disruption to It follows that the cross-exchange prices at CEXs are almost identically discrepancies between DEXs or between DEX and CEX, opens doors for
traditional finance that offers peer-to-peer financial systems without pegged. (Please note we neglect all negative effects of negative trading arbitrageurs. These market participants capitalize on cross-exchange
intermediaries. Meanwhile, the continuous regulation process of fees, such as market manipulations, concentration of power, and price differences, often at the expense of regular users and liquidity
Centralized Exchanges (CEXs) leads to increased interest and adoption more. We focus only on the benefits that DeFi needs to compete with). providers. A study on Solana’s DEXs revealed that arbitrage actions
of DeFi, and the increased usage of DeFi unveils specific structural resulted in a loss of 27.8% of the Total Value Locked (TVL) annually.
inefficiencies that give CEXs a significant edge. The order book system offers accurate real-time pricing that eliminates This exorbitant drain discourages liquidity providers since they suffer
the need for external data sources. DeFi platforms have attempted to divergence losses that reduce investment returns. In contrast, CEXs
AMMs: Price Impacts and Capital Efficiency leverage oracles for importing real-time external price data. However, that allow higher trading flexibility can promptly rectify potential
these oracles are susceptible to manipulation, centralization, and may arbitrage opportunities. Their integrated systems, real-time data, and
Automated Market Makers (AMMs) represent the core of many DeFi not consistently offer real-time data, potentially exacerbating existing centralized liquidity provisions allow them to act quickly, minimizing
platforms. It substitutes the traditional order book systems and sets issues. DeFi relies heavily on user-provided liquidity. The AMM system is the window for arbitrage actions and even utilizing mispricing at DEXs
prices based on the corresponding reserve ratios in a liquidity pool. revolutionary in terms of fairness distribution and participation towards that leads to even higher profits for market makers at CEXs by the cost
While this ensures guaranteed liquidity, it has the following trade-off: small market participants. However, it also has its pitfalls, notably of liquidity providers at the DEX (or trader).
low reserves lead to price slippage, whereas high reserves lead to due to its static nature. Challenges like comparably high slippage and
capital inefficiency. For DEX traders, slippage increases with increased inaccurate market prices need to be resolved. In most DeFi protocols, Conclusion
trade size. Therefore, AMMs are unsuitable for high-volume traders. funds are static and are largely unresponsive to market demand. This
contrasts sharply with CEXs, where funds are dynamically adjusted DeFi’s promise of decentralization and democratization of finance is
In contrast, most CEXs use traditional order book systems to match undoubtedly compelling. However, juxtaposed against the efficiencies
and relocated based on market conditions. To rival its centralized
buyers and sellers. To attract market makers, CEXs use their flexibility of CEXs, the current DeFi cracks become evident. As pioneers like
counterparts, DeFi protocols must innovate beyond its static liquidity
advantage over DEXs. Specifically, that is the case for their fee stabble, we know the structural advantage of CEXs and have solutions
to embrace dynamic liquidity management. Furthermore, the static
structure. The higher the monthly/weekly trading volume, the lower to compete with CEXs. The broader DeFi space must take this note
nature of liquidity in DeFi has direct consequences for yield and capital
the trading fees (measured in basis points, i.e., 100 basis points = 1 and react together to address these hurdles. It is not just desirable
efficiency. When liquidity is fixed and doesn’t adapt dynamically to
percent). For CEXs, this is a suitable approach to incentivize market but imminent. DEXs must work together and strengthen smart
changing market, pool, and protocol conditions, it often remains
markers. However, its economics of scale factors lead to unfair trading contract interoperability to ensure a more robust capital system.
trapped in less productive pools. This results in low returns for liquidity
conditions. In terms of basis points, small-volume traders end up For cross-chain interoperability and capital flows, it is necessary to
providers, reducing the annual percentage yield (APY) they receive
paying up to twentyfold more in fees than market makers and high- create bridges and reduce the associated cost of capital flow. Only
on their staked assets. Centralized competitors, with their adaptive
volume traders. by resolving these inherent challenges can DeFi move beyond being
mechanisms, ensure that capital is more likely to be employed more
efficiently. The discrepancy in capital utilization between DeFi protocols a mere fascinating experiment. To outperform Centralized Exchanges
DeFi is Built to Treat Traders Equal (CEXs) in the future financial landscape, DeFi must evolve and capitalize
and CEXs means that DeFi participants might be sacrificing potential
The dynamic fee approach at CEXs allows low or even negative trading gains for the sake of decentralization. Addressing the static liquidity on its unique strengths. The stabble team is actively engaging with
fees (meaning that market takers pay market makers) and offers challenge will be key for DeFi protocols to ensure optimal user returns. the DeFi community to collaboratively build a
lucrative trading conditions for market makers. Therefore, these more equitable capital system rather than merely
lucrative conditions attract a lot of capital, resulting in low slippages Arbitrage: The Silent Drain in DeFi replicating traditional financial models.
for traders in the order book system. Another effect of negative trading
A particularly troubling inefficiency in DeFi is the rampant arbitrage
fees is an efficient market pricing of assets at CEXs. For market makers,
that siphons value out of decentralized protocols. The decentralized Defi_guy
negative trading fees lower the threshold to execute arbitrage trades.
nature of these platforms, coupled with the occasional price Founder & CEO, Stabble
Powered by Stabble https://stabble.org/

BERLIN’S BLOCKCHAIN & WEB3 ECOSYSTEM

Berlin is where blockchain and Web3 communities This sets, for example, the stage for debates on recent regulations. and competitions offer many opportunities to network and grow.
flourish Next to very established players such as the Ethereum Foundation, A brand-new upcoming event for the fintech community is FIBE:
the IOTA Foundation, or Ocean Protocol, more recent communities Fintech Berlin - the first fintech festival in Europe that takes place
A wide range of tech-savvy, diverse communities, cutting-edge
are thriving, such as the w3.fund. Especially communities of female on April 24-25, 2024. The city’s important hub for fintech activities is
start-ups as well as a variety of SMEs and large companies, an
founders and developers such as Crypto Girls Club, WIBT Women the Berlin Finance Initiative (BFI), a part of the Digital Hub Initiative
elaborated landscape of research institutions, an increasing
in Blockchain Talks, Female Cofounders, or the FinTech Ladies from the Federal Ministry of Economics. Berlin fintech startups,
number of investments and international talents, and the high
are quite active. Also, communities focusing on sustainability and established companies, banks, insurance, and many other
quality of living make Berlin the German blockchain and web3
trying to develop Web3 technologies as an enabler for sustainable stakeholders come together at BFI to exchange about different
capital – still after more than one decade. After the COVID
transformation are growing in number and activity. Important topics, trends, and possibilities and learn from each other.
pandemic, the blockchain and web3 ecosystem is again constantly
research and education institutions are the Technical University
growing. Within a range of start-ups, global enterprises, scientific Berlin Partner is your Partner for Innovation
of Berlin, the University of Applied Sciences (HTW), the Institute
institutions, investors, accelerators, and networks, you can find
for Applied Blockchain (IABC) of the Digital Business University for
more than 160 players in Berlin. Dynamic, innovative, and technology-driven: Berlin unites emerging
Applied Science, Fraunhofer FOKUS, and a diverse pool of coding
and promising companies in one place and thus creates the basis
schools and course programs such as Chaineducation Labs or the
Shaping the future of blockchain and web3 for future blockchain and Web3 solutions. The ICT, media, and
IoT One Academy. Last but not least, associations and initiatives
creative industries cluster and Berlin Partner are promoting and
Groundbreaking innovations and collaborations with excellence such as BerChain, IDunion, or the Blockchain Bundesverband
supporting blockchain and web3 developers and applicants with
shape the mindset of blockchain and web3 developers in Berlin. e.V. strengthen the collaboration between industry and scientific
dedicated services. Together, we are driving exciting innovation
Despite the latest media scandals, the potentials of blockchain institutions.
projects forward in Berlin!
and web3 can be seen in a growing variety of use cases and areas
for possible applications – ranging from digital transactions, Fintech as an innovation driver in the capital city &
asset management systems, self-sovereign identities (SSI), supply new in town: FIBE
chain management, electric mobility, DAOs, or digital arts. These
Berlin has a vibrant and bright fintech ecosystem that corresponds
topics can be seen and discussed at many meetups, events, and
to blockchain and web3 development in the city and contributes
conferences that provide an excellent platform for entrepreneurs
to the innovative vibe of Berlin. With over 350 startups, 1.8 billion
to network and showcase their projects to potential partners and
investments in 2022, and 6 unicorns in fintech, Berlin is one of the
investors. Among others, the events within the Berlin Blockchain
favorite places for talents and investors from all over the world.
Week, the Best of Blockchain, the WeAreDevelopers World
Finance and tech companies have a huge potential to transform
Congress, the Rise of AI conference, and the Berlin Creative Tech
the economy, force innovation, and build attractive investment Katarzyna Grajner Jakob Zwiers
Summit 2023 can be mentioned here. Dynamic players like Solana
surroundings. Fintech is an important area of application for Coordinator de:hub Project Manager Innovation |
Superteam Germany, the Lisk Center Berlin, w3.hub, and CV Labs
further innovative technologies like AI, blockchain, and quantum Berlin IoT & Fintech, Information and Communication
Berlin explore new event formats.
computing. Berlin provides perfect conditions for fast development Berlin Partner Technology |Blockchain & IT-Security,
in finance & technology and is an important international player in Berlin Partner
Synchronicity of the Established and the New
fostering innovation in fintech.
The strong ecosystem in the German capital creates important
synergies between decision-makers, regulators, investors, There is a full event schedule on fintech events and community
mentors, research and education institutions, start-ups, and SMEs. activities throughout the year: meetups, conferences, workshops,
Powered by Berlin Partner https://www.berlin-partner.de/en

LUKSO: THE BLOCKCHAIN FOR THE NEW CREATIVE

ECONOMIES
Germany - A Web3 Hub tool to connect humans in the most fluid and free and decentralized online persona. Additionally, users no longer need to worry about
way.” - Fabian Vogelsteller, Co-founder of LUKSO. their seed phrases being the only mechanism to recover their
Germany has played an important role in the Blockchain Industry.
accounts and digital assets. Universal Profiles allows users to
Historically, many foundational blockchain technologies and For its Reversible ICO (rICO), the team engaged with the regulators recover their accounts through other devices and or third-party
network infrastructures were developed in Germany. This includes and Dr. Thorsten Voß to make sure that LYXe and LYX (the native recovery services, making the user experience similar to what we
projects like Ethereum, Polkadot, and even early Bitcoin wallets. token of the LUKSO blockchain) and the rICO process are in are used to today with conventional web accounts.
While this fact might remain somewhat understated, it’s undeniable alignment with German regulation. Additionally, the Reversible ICO
that Germany has, and continues to have, an enormous impact on was created with a mechanism that allows buyers to reserve ETH Furthermore, users on LUKSO will have a gasless experience from
the Web3 ecosystem. allocations for buying tokens over 8 months. During this period, day one! This means users will not need to hold LYX (or any
buyers could withdraw ETH from the smart contract if they no token for that matter) to make transactions, addressing one of
In 2018, the LUKSO blockchain was born in Berlin as the first
longer wished to participate, adding an additional layer of safety the biggest barriers with blockchain adoption today and simplifying
blockchain tailored to support the new creative economy. Co-
for buyers. This mechanism was a first and showcased the ability the experience. LUKSO offers a relay service that subsidizes users’
founder Fabian Vogelsteller left his position at the Ethereum
of Blockchain to build mechanisms that are safe by design, even gas to interact with the blockchain, an initial step towards an
Foundation as its Lead Dapp Developer to join forces with Co-
when conducting a sales process. industry of Transaction Relay Services (TRS).
founder Marjorie Hernandez to bring blockchain technology
beyond DeFi and into the lifestyle world. LUKSO emerged soon after LUKSO is also a member of the German Blockchain Association Mainnet was launched fully decentralized by its community in May
as a novel layer-1 EVM blockchain that supports revolutionary new (Bundesblock), a non-profit association focusing on establishing this year with 10,336 Genesis Validators and has been running
standards and solutions to facilitate real mainstream adoption. blockchain technology in politics, society, and institutions. smoothly. The network now has nearly 50,000 validators and is
approaching the Testnet release of its Universal Profile Browser
Involvement in the German Blockchain Space The LUKSO team is a strong believer in education about blockchain Extension!
technology. The team supports various educational blockchain
From the get-go, LUKSO has worked to move the blockchain space
technology initiatives and collaborates with German-based Follow LUKSO for more exciting news and explore the New Creative
further in terms of technology and pushing for effective regulation.
conferences and events such as Blockchance, Dappcon, and Berlin Economies built on LUKSO!
For example, Co-founder Fabian Vogelsteller and other blockchain
Fashion Week.
leaders were invited to the European Parliament to discuss Web3
industry recommendations for future policy.
Shaping the Industry
“...the biggest challenges we face are from overregulating an industry LUKSO aims to realize Web3’s multitude of novel use cases, such as
that is in its infancy. Things like NFTs or Tokens are not a single asset decentralized social media, decentralized journalism, fashion, art, Bianca Buzea
class that can be put in a box, regulated, and ‘made safe’ this way. It gaming, and music, while tackling the user onboarding problem Head of Developer Relations,
is a fundamental technology that can represent all kinds of things. LUKSO
that blockchain technology still struggles with today. By using
From a ticket, your reputation, a song, to a membership, and a million smart contract-based accounts called Universal Profiles, the
more things that we can not even imagine right now. Regulating accounts on LUKSO mirror the user experience users have come
Edited by Sarah Smyth, Head of Communications, LUKSO
this as financial assets is simply short-sighted and uneducated. The to expect from similar Web2 platforms.
opportunities lie in the possibility of re-invent the internet as we know
it, removing its problematic structures, like centralized servers and For the first time, users can truly build their profiles on-chain,
massive companies that control data, to what it was meant to be: A adding images, tags, and links to their accounts to shape their
Powered by LUKSO https://lukso.network/

UNVEILING THE DYNAMIC LANDSCAPE OF

GERMANY’S BLOCKCHAIN ECOSYSTEM IN 2023
Germany continues to shine as a flourishing hub for the Capital play a pivotal role in nurturing early-stage startups. Beyond creative growth. Enthusiasts passionate about blockchain’s societal
blockchain community, underscoring its vibrancy and innovation. VCs, entities like Berlin Partner für Wirtschaft und Technologie impact congregate at gatherings hosted by positiveblockhain.
The combination of diverse stakeholders, stringent regulatory extend valuable support, assisting startups in securing both public io to discuss regenerative finance, sustainability, and beyond.
frameworks, robust governmental support, and the presence
and private funding. This multifaceted support framework makes Notable hubs such as Factory and entities like Full Node and
of major blockchain protocols positions Germany as a global
Berlin an irresistible destination for blockchain enterprises. Lisk Center house Berlin’s brightest creators, developers, and
epicenter for blockchain innovation. At its core, Berlin, renowned
as Germany’s Blockchain Capital and a premier European city for founders. Organizations like BerChain enhance the community
Innovating Together
blockchain, stands as a testament to this dynamic ecosystem. fabric through workshops, impactful events like Blockchain in Use,
E.ON’s story stands out as a beacon of successful synergy and and unbiased research that encourages offline interoperability,
Embracing Diversity
corporate blockchain adoption. This energy behemoth has engagement within protocol communities, and the cultivation of
The growing Berlin blockchain ecosystem thrives not only due to seamlessly integrated blockchain technology into its operations a resilient and thriving environment - all contributing to solidifying
its 120-plus startups but also due to the remarkable synergies through a collaboration with UBRICH. Their pioneering work Berlin’s status as a global blockchain epicenter.
they foster across various industries. These synergies facilitate on a certified energy certificate highlights the dynamic fusion of
Conclusion
novel use cases that address contemporary challenges faced blockchain prowess with the energy sector. This transformative
by conventional businesses transitioning into the digital realm. innovation promises to redefine energy efficiency assessments, As the curtains rise on Germany’s blockchain ecosystem in
Collaborations like the one between Polimec and Deloitte showcasing the immense potential when industry expertise and 2023, the intricate tapestry of innovation, collaboration, and
Switzerland, which leverages the KILT Protocol for a cutting-edge blockchain capabilities converge. transformative potential comes into view. Berlin’s role as the
Know Your Customer (KYC) solution, along with the strategic fusion nucleus of this dynamic landscape is unmistakable, driven by its
of financial savvy and blockchain proficiency showcased by various Fostering Thriving Communities
diverse actors, pioneering use cases, and vibrant communities.
venture capital firms and protocols, serve as compelling examples
Beyond its function as a fertile ground for scaling sustainable The journey ahead holds the promise of further exploration,
of the transformative power inherent in these partnerships. These
blockchain ventures, Berlin’s blockchain community is renowned breakthroughs, and partnerships, positioning Germany at the
collaborations yield groundbreaking solutions and encapsulate
for its diversity and strength. These communities act as incubators forefront of blockchain evolution and asserting its influence on the
the essence of Germany’s blockchain realm - a harmonious
for collaboration, knowledge dissemination, and resource pooling. global stage. The blockchain future, enriched by German ingenuity,
community with diverse strengths propelling technological
They serve as crucibles where ideas germinate, alliances form, continues to unfold with unparalleled excitement and promise.
advancement. A plethora of use cases spanning finance, supply
and innovation prospers. From Berlin to Munich and Hamburg to
chain, and government sectors underscores Berlin’s innovative BerChain Collaboration
Frankfurt, these hubs exemplify the passion and dedication driving
prowess.
Germany’s blockchain landscape.
These use cases constitute the bedrock for establishing a scalable

The community continually converges in diverse venues to
and engaging ecosystem, attracting larger enterprises into the
deliberate, synergize, and address the most pertinent challenges
fold. Venture capital firms like CV VC/CV Labs, w3.fund, and HV
in the blockchain realm, fostering an environment conducive to
Powered by BerChain https://berchain.com/

06
REGULATIONS
59 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 06. REGULATIONS
MiCAR and its DeFi exemption

The Markets in Crypto-Assets Regulation (MiCAR) is a rule book requires a whitepaper (the crypto-equivalent of a securities financial regulation (e.g., security tokens).
created by the European Union (EU) to bring clarity and regulation prospectus) unless certain exemptions apply. Exemptions include
However, irrespective of these conceptual differences, the
to the crypto world. Its main goals are to promote innovation thresholds for the maximum number of persons addressed, the
German crypto-asset service provider market shall be well
while protecting investors and ensuring market integrity. maximum amount of consideration received, or limitation of an
prepared to cope with MiCAR. A service provider offering crypto-
MiCAR is intended to encourage innovation by making it easier offer to qualified investors only. These exemptions mirror the
asset services in accordance with applicable law (like the German
for companies to offer new and innovative crypto services by securities prospectus rules. In addition, MiCAR contains further
license requirement) by the end of 2024 will get an additional 18
providing a regulated framework. At the same time, MiCAR aims crypto-specific exemptions for airdrops, mining rewards, and
months to obtain the newly required MiCAR authorization. New
to ensure that people getting involved with cryptocurrencies and certain utility tokens. As far as these crypto-specific exemptions
market entrants that do not qualify for that grandfathering rule
crypto-assets are treated fairly and can become aware of the risks apply, token issuers are not even bound by the otherwise still
may not offer their services following 2024 until their authorization
involved. Therefore, MiCAR sets a number of rather strict rules for applicable and fairly strict rules of good conduct.
has been granted. Hence, these might be forced to discontinue
companies that offer crypto assets and/or crypto-related services.
services in 2025.
MiCAR is supposed to create a level playing field for all participants Service Providers
so that the market operates fairly and transparently and fraud and
Alongside persons offering crypto-assets, MiCAR also regulates DeFi exemption
market manipulation can be prevented in the crypto space.
service providers in the crypto space. Companies offering crypto-
Excluded from the scope of MiCAR are i.a. fully decentralized
related services, such as exchanges and wallet providers, must
Crypto-assets services and non-fungible tokens in a narrower sense. These two
obtain authorization from regulatory authorities in their home
have been much debated, and their precise scope is still unclear.
Firstly, MiCAR provides a clear definition of crypto-assets and countries. They need to meet certain criteria and demonstrate that
categorizes them into three primary categories: e-money tokens, they have the necessary safeguards to protect their customers’ The term DeFi is used for many different services, equally for
asset-referenced tokens, and other tokens. The framework places crypto assets, which is very much in line with the existing financial centralized service offerings in (more or less) decentralized
particular emphasis on the first two types of tokens. E-money services regulation. environments (e.g., controlled smart contracts running on fully
tokens refer to one single fiat currency as a reference, while asset- decentralized protocols) as well as for functions lacking any
The licensing requirements for crypto-asset service providers
referenced tokens refer to a basket or another asset or right but identifiable administrator on any given layer. The former are clearly
in Germany are not a recent development; they were actually
a single fiat currency. As both types of crypto-assets purport to within MiCAR’s scope as it reads in its recitals: “This Regulation
introduced as early as 2020. Germany got there by making
create a stable means of exchange, the public will rely on this fact, should apply to […] crypto-asset services and activities performed,
crypto-assets financial instruments so that financial services
so these two token types may only be issued by an authorized and provided or controlled, […] including when part of such activities
license requirements applied to crypto-asset service providers
regulated entity. or services is performed in a decentralized manner. Where crypto-
as well. This approach contrasts with the European strategy,
asset services are provided in a fully decentralized manner without
Other crypto-assets but e-money and asset-referenced tokens which aims to largely avoid altering the existing EU financial
any intermediary, they should not fall within the scope of this
enjoy a somewhat lighter regime as they may be offered without regulatory framework. The new European regulation aims only to
Regulation.“ Hence, the debate about what may or may not be
needing prior authorization. However, any crypto-asset offering fill loopholes for crypto-assets not already covered by the existing
fully decentralized is finally on the table. Once criteria have been
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developed, this will also support pushing back the common “DeFi- the notion of “intended access” (bestimmungsgemäßer Zugriff). is holding the majority, voting may nevertheless not establish a
washing” of clearly centralized services. It could be argued that retaining a maintenance capability for an truly decentralized decision-making. There is the common voter
otherwise fully decentralized service, designated exclusively for fatigue to be considered. This problem is well known from the low
But what is actually required to qualify as “fully” decentralized?
emergencies or community-approved changes (e.g., in the case of participation rates of shareholders in general assemblies of publicly
There are two main aspects to consider: (i) factual access to
a DAO), does not provide any “intended access” to these services. listed stock companies. The fact is shareholders in such stock
any given technical layer involved in the service offering and (ii)
Consequently, individual(s) solely fulfilling the technical function of corporations with even a one-digit percentage of shareholdings
governance mechanisms (e.g., DAOs).
implementing updates do not act as operators or direct providers are considered to have a major influence. Therefore, the decisive
of the services offered by the relevant smart contract or protocol. border line for a detrimental shareholding is not even close to 50%
Access to tech In such scenarios, these individuals might be regarded as technical but rather below a 20% or even 10% share concentration.
Many commentators hold the view that a service may qualify service providers if their “intended access” does not imply ongoing
A separate question is whether an influencer without any factual
as “fully decentralized” only when no individual (singly or in a control or governance over the entire system. The key distinction
collaboration with a decisive group of token holders (holding in
collaborating group) exerts any form of control over technical lies in the intention behind this access, which is not for managing
total a sufficient percentage of tokens to dominate the outcome of
components or layers integral to its operation. This perspective the operations but for addressing exceptional situations. Whether
a vote) may qualify as central point of influence. Some argue that
does not take into consideration that software code is a product the underlying crypto service can ultimately still be acknowledged
a service may not be fully decentralized simply due to the fact that
of humans and, thereby, inherently prone to imperfection, as fully decentralized, in this case, hinges on the governance
an influencer’s public opinion may cause a sufficient number of
necessitating continuous refinement and updating. In software, it structure determining and ensuring that the individual(s) deploy
(independent) token holders to vote as such influencer suggests.
is virtually impossible to eliminate the potential for vulnerabilities their administrative key in accordance with its intended purpose.
In my opinion, the simple publication of a personal opinion
leading to emergency situations entirely. Consequently, there is
cannot be sufficient to hinder any given service being qualified as
a certain reluctance to permanently relinquish access to and, by DAOs
fully decentralized. This rather requires further governance and
extension, control over software systems.
The governance structure known as a Decentralized Autonomous incentive structures to keep everyone aligned with such influencer’s
One approach to addressing this conflict between the requirement Organization (DAO) is widely popular. DAOs claim to be opinion. An example might be a dedicated unit governing a smart
of full decentralization and the imperative of ongoing (emergency) decentralized by title. However, as with the common DeFi washing, contract or protocol and deciding about updates. If such central
updates is reminiscent of the reasoning employed by the German much DAO washing can also be observed. Governance structures entity’s governance is combined with financial incentives for
legislator to distinguish between crypto custody and mere technical need to be analyzed in detail to determine whether a DAO is indeed remaining aligned with its proposals, this could create a prejudicial
service. When introducing crypto assets and crypto custody to decentralized. The main questions are, in this context, whether a effect on such system with regard to its decentralization.
the German banking law in 2020, the legislator discussed how single person or collaborating group can control the outcome of
There are many more factors to be taken into account (how and
to delineate licensable custody business from the provision of the DAO’s (voting) decisions or if the people involved in the DAO
from whom proposals for votings may be made, voting procedures,
e.g., data storage (cloud services) or (non-custodial) wallets. The (accidentally) created a legal entity of some sort.
sequence and timing, blocking mechanisms, etc.). As long as there
reasoning for the new rules stipulates: “Also not covered [by the
have been no established criteria being developed, governance
license requirement] is the mere provision of hardware or software Control over decisions
structures will need to be analyzed on a case-by-case basis.
for securing the crypto assets […], which is operated by the users
In a DAO, decisions are made through a voting process. A vote
on their responsibility, insofar as the providers have no intended
does not result in a decentralized decision if a single person or a
access to the data stored with them.” The emphasis here lies on
cooperating group holds a majority of all votes. But even if nobody

Accidental creation of a “default entity” token holder or any team member, council, advisory, or other issuance of crypto-assets as non-fungible tokens in a large series
supporting voice), such jurisdiction’s rules may claim to apply. In or collection should be considered an indicator of their fungibility.
nother example of what may prevent a qualification as “fully
the context of international teams, this typically leads to multiple The mere attribution of a unique identifier to a crypto-asset is not,
decentralized” is when a DAO accidentally creates a legal (called
jurisdictions claiming to be the relevant ones for the case at hand. in and of itself, sufficient to classify it as unique and non-fungible.
unincorporated in some jurisdictions) entity or partnership, as the
The assets or rights represented should also be unique and non-
case may be. When the collaboration among the involved parties Some jurisdictions provide for explicit legal wrappers for DAOs
fungible in order for the crypto-asset to be considered unique and
reaches a level that local law identifies as constituting a new in order to ensure a liability limitation for DAO participants. In
non-fungible.”
legal entity or partnership, the DAO in question ceases to be fully the context of MiCAR, such a wrapper might also be recognized
decentralized and instead operates as a unified, distinct entity.. as a central element prejudicial to the software system still being In summary, determining what services are provided in a fully
recognized as decentralized. Ultimately, the same arguments as decentralized manner and which crypto-assets may be truly
In most jurisdictions, such a default entity comes with unlimited
outlined above apply. If the access to the technology is limited unique and not fungible is still largely in legal limbo. In both cases,
liability for all actors involved. This is the most alarming threat
to the mere technical function of implementing community MiCAR will not apply. Consequently, local national law may kick
to all participants in DAOs. From a German law perspective,
decisions, such a wrapper should not necessarily be recognized in as MiCAR does not overrule it with regard to digital services or
such a default entity is called a civil law partnership (Gesellschaft
as a crypto asset service provider itself. The wrapper must ensure digital assets outside the scope of MiCAR. While it can be beneficial
bürgerlichen Rechts or GbR). It requires two or more persons to
that it is only facilitating discussion and knowledge building but not not to be MiCAR regulated, this also has the detrimental effect
agree upon pursuing a shared goal by making agreed contributions.
steering the software development and creating system immanent of having to verify which national law regulates the digital asset
While most DAO token holders pursue such a common goal,
incentives for other participants to follow the wrapper’s decisions or service and in what way. For Germany, it will be interesting to
it is rather unusual to expect all of those token holders to have
or opinions. see how the extensive existing national crypto regulation will be
committed to a certain contribution. Some may hold the tokens to
adopted to MiCAR and to what extent excessive national rules
participate in the governance, but others may use their tokens to All of these concepts still need to be tested. The decisive criteria
remain in place. The crypto community will surely appreciate it if
pay transaction fees or for investment purposes. Therefore, from for a fully decentralized service will become clearer over time.
Germany dispenses with “gold plating” special crypto regulation in
the standpoint of German law, a typical DAO whose tokens solely The community would be well advised to engage in the discussion
addition to MiCAR to support the creation of a truly harmonized
grant access—for example, to vote on specific proposals or initiate actively.
European market.
transactions—without imposing any obligations for contributions
is unlikely to be classified as a civil law partnership.
NFT exemption
Unfortunately, each jurisdiction developed its own rules of what Another important limitation of the scope of MiCAR is the one for
type of collaboration of more than one person constitutes a non-fungible tokens (NFTs). Tokens that are truly unique and not
(separate) legal entity. Hence, any tech project aiming to work interchangeable with other tokens are not regulated as crypto
on a global scale needs to deal with nearly 200 jurisdictions in assets. It is worth highlighting that the uniqueness is determined Dr. Nina-Luisa Siedler
this regard. The beauty of law is that it has historically been rather on an economic than technical level. A digital asset with Partner, Möhrle Happ Luther
decentralized from the outset. It is formalized in the Charta of the unique technical attributes may still be interchangeable with
United Nations, dating back to 1945. The United Nations is not a set of similar assets if they all confer the same functionalities
authorized to intervene in matters that are essentially within the or rights. Accordingly, the legislator explains in the preamble of
domestic jurisdiction of any state. Once there is any connecting MiCAR: “The fractional parts of a unique and non-fungible crypto-
point to any given jurisdiction (may this be a shareholder = DAO asset should not be considered unique and non-fungible. The

CLOSING THE KNOWLEDGE GAP IS THE KEY TO

GERMANY REALIZING ITS BLOCKCHAIN POTENTIAL
Blockchain adoption has blossomed in recent years. Enterprise acceptance of Bitcoin as a means of payment, and continued such as those created by The Hashgraph Association and Hedera
adoption, the convergence of TradFi and DeFi, and the general interest from traditional financial institutions, the evidence mounts will eliminate many hindrances preventing German businesses
consensus held toward Distributed Ledger Technology (DLT) have up as to why Germany is seen as a world leader in the application from adopting blockchain/DLT.
painted a clear picture of the future; Web3 is here to stay. Several and adoption of blockchain technology.
countries worldwide are jumping at the opportunity to assume a By leveraging Germany’s progressive stance on blockchain,
first-mover role and lead a blockchain revolution; Germany fits this Despite this enablement by the German government, the adoption enterprises across the country will benefit from a new era of
bill. Thanks to regulatory clarity and a well-earned reputation for rate amongst businesses could indicate some hesitancy. A recent technological innovation, transforming their business practices
technological innovation, German enterprises are globally at the study by the IFO Institute found that only 6.9% of German and leading the globe toward a bright future. The onus is on
forefront of crypto and blockchain adoption. companies are currently using, or planning to use, blockchain entities such as The Hashgraph Association to facilitate the
technology for their business processes. In comparison, blockchain mass adoption of blockchain technology in Germany continually.
Siemens, Germany’s leading multinational technology is a subject of discussion at only 18.7% of all companies surveyed. Through funding and education, German businesses of all sizes, be
conglomerate, offers a shining example of this progress. The From these findings, it is clear that there is a disconnect between it SMEs or multinational corporations, will be continually exposed
influential tech giant recently issued the first-ever digital bond on the opportunities enabled by Germany’s stance on blockchain and to the transformative potential of blockchain and can future-proof
blockchain, putting Germany on a global pedestal for mass crypto the actions businesses take on the ground. It is through education the nation as a welcoming home for blockchain innovation.
adoption. The development makes paper-based global certificates that this gap may be bridged, and the potential of blockchain
and central clearing redundant, removing intermediary banks technology can be fully realized.
from the settlement process. This was only made possible due
to the German government’s proactive and supportive stance on A partnership between The Hashgraph Association and Fraunhofer-
blockchain technology, specifically, Germany’s Electronic Securities Gesellschaft showcased the versatility and usability of blockchain/
Act (Gesetz über elektronische Wertpapiere, eWpG), which came DLT for those enterprises willing to embrace this disruptive tech. Kamal Youssefi
into effect in June 2021. The collaboration centers on the ‘Innovation Challenge,’ which
President of the Board,
invites Fraunhofer-Gesellschaft’s research units to submit ideas The Hashgraph Association
More recently, The German Ministry of Finance has announced for solutions that DLT has not yet solved. Through initiatives such
the Future Financing Law, allowing companies to issue electronic as the ‘Innovation Challenge,’ businesses will become increasingly
securities based on blockchain technology. Designed to position exposed to blockchain technology, have better access to the
Germany as a financial center through the digitization of its capital necessary skills for implementing blockchain-backed solutions, and
market, the act will further improve the transferability of crypto will be in a position to capitalize on the opportunities presented by
securities across Germany and Europe. This de-bureaucratization Germany’s progressive DLT stance.
of traditional financial structures puts blockchain technology at
the heart of Germany’s efforts to advance its economy. The Hashgraph Association’s innovation programs are designed
to enable start-ups, enterprises, and governments alike to
This positive attitude and disposition towards crypto-based incorporate Hedera’s DLT into their business processes and
technologies underlies why Germany was ranked the most crypto- practices. Hedera’s cutting-edge technology enables a trusted,
friendly country in the world by CoinCub in 2022. Considering secure, and empowered digital future, closing the blockchain skills
the country’s previous regulation of Initial Coin Offerings (ICOs), gap that may hinder further innovation in this space. Initiatives
Powered by Hedera https://hedera.com/

CV LABS AND THE EVOLVING ROLE OF

ACCELERATORS IN BLOCKCHAIN
The interview presented below offers an enlightening conversation With this approach, we can leverage our network while reducing batch. Out of these, only five to ten are accepted to ensure that
with Janis Aguilar, Head of Acceleration at CV Labs. This program travel expenses. we can deliver hands-on experience and provide them with the
is an integral part of CV VC’s forward-thinking strategy, serving as support they need. Historically the majority of applications are
a cornerstone in developing and sustaining early-stage crypto and Blockmagazin: What defines your accelerator program, and how coming from Europe and Africa, as well as the US.
blockchain startups. Conducted by Blockmagazin, the discussion do you differentiate yourselves from other accelerators?
highlights CV Labs’ history, its distinctive approach to investment, Blockmagazin: You are a strong proponent of the collaboration
Janis Aguilar: We were actually the first accelerator program between layer-1 foundations and accelerator programs. Could
and its future endeavors.
in the DACH region that completely focused on blockchain and you elaborate on how both parties can benefit from such
A key differentiator of CV VC is its hands-on approach to the startups Web3. Thus we are a blockchain-focused accelerator with focus on collaborations?
it invests in, not just financially but also in their development and the application layer (we don’t focus solely on DeFi or NFTs etc but
go-to-market strategies. This interview showcases how the role have a generalist approach). That said, our investment focus lies Janis Aguilar: I have a very specific take on this matter. I believe
of accelerators has evolved from being just an optional support in the application layer. Compared to other accelerators, I believe that there should be a differentiation between projects and
mechanism to becoming a key pillar in the development of the that we have a stronger network and community-driven program, start-ups. In my view, projects often emerge from hackathons or
blockchain ecosystem. With the rise in popularity and increased which includes representatives from large corporations and crypto are funded by specific grants provided by layer-1 foundations.
adoption of blockchain technologies, understanding the pivotal experts with extensive knowledge of the space. However, in the current market situation, these projects are rarely
role of such accelerators is now more critical than ever. turned into profitable businesses in the long term. This is exactly
Blockmagazin: Let’s talk numbers! Can you tell us more about the why a carefully planned collaboration with an accelerator program
Blockmagazin: Janis, you manage the accelerator for CV Labs. Can track record of the accelerator? can make a lot of sense, as long as the VC’s ecosystem is fully
you give us a brief overview of its history? integrated. The result: a win-win situation. The VC gets access to
Janis Aguilar: Over the last five years of our program, we
new startups that it can accelerate through its own program, and
Janis Aguilar: We started with our accelerator back in 2019 in accelerated roughly 40 start-ups from across the globe. Despite
the layer-1 gains traction through a growing ecosystem. We are
order to support our early-stage investments and to give them the shifting market conditions in Web3, the majority of them are
already working on this vision with several foundations.
a head start in this very competitive market that is blockchain. still operating. Of course, over their lifetime, many will fail, which
The first batch of our program was fully on-site: we invited all the is normal in venture capital. Usually, more than 50 percent of our Blockmagazin: Can you give us a brief outlook on the future of
teams to join us in Switzerland for three months. After the first accelerator start-ups manage to close their subsequent funding the accelerator?
batch successfully graduated from our program, we repeated rounds successfully. One of our biggest success stories to date
it with the second batch of start-ups roughly a year later. The is the German company Asvin from batch_01, as they managed Janis Aguilar: We are currently sourcing projects for batch_06 that
first real challenge we faced was Covid. We actually paused the to raise several rounds from investors as well as acquire several starts in March 2024. Besides that, we are currently working on
accelerator program until 2021 at which point we had figured millions in grant money from the EU and other institutions, win an acceleration-as-a-service offering and have several partnership
out how to execute the entire concept fully remote. During this several cyber security awards globally, next to secure exciting announcements in our pipeline – so stay tuned for some exciting
time, we learned that you can achieve certain goals remotely, but contracts and revenue opportunities. news in the coming weeks
nothing is able to replace face-to-face networking with experts and
Blockmagazin: How many startups usually apply, and how many Blockmagazin: Thank you for the interview!
investors. This led us to our current approach with the fourth batch
are accepted?
of the accelerator program. While the majority still takes place In reflecting on Janis Aguilar’s insights, it becomes apparent that
remotely, the initial two-week bootcamp is held in Switzerland. Janis Aguilar: On average, we receive 300-500 applications per CV Labs isn’t just an accelerator program but a nuanced ecosystem
Powered by Blockmagazin https://blockmagazin.de/

builder. Their emphasis on differentiating between ‘projects’ and ‘startups’ also sheds
light on a more sophisticated investment approach that recognizes the complexities
and variables that dictate success or failure in this volatile space.
As we look forward to the Accelerator’s sixth batch and its expansion into ‘acceleration
as a service,’ the takeaways from this interview serve as a vivid roadmap for anyone
seeking to navigate the intricate dynamics of blockchain innovation. CV Labs’ journey
and philosophy exemplify that acceleration in the blockchain realm isn’t just about
funding but about building resilient, adaptive, and impactful businesses.
Lukas Fiedler Janis Aguilar

Editor in Chief, Head of Acceleration,
Blockmagazin CV Labs
Powered by Blockmagazin https://blockmagazin.de/

07
CONCLUSION
66 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 07. CONCLUSION
Report Conclusion
GLOBAL AND REGIONAL LANDSCAPE: secured 9.4% of European blockchain funding and 10.3% of all appreciate the efforts of startups, industry leaders, company
The German Blockchain Report’s annual exploration into the European blockchain deals, marking a substantial increase from builders, universtities, governmental organizations, and even
intricate landscape of blockchain and cryptocurrency venture the prior year’s figures of 4.9% and 8.5%, respectively. Germany private non-profit organizations in shaping Berlin into one of the
funding has illuminated profound metrics that are redefining the secured $355m across 34 deals in blockchain venture funding, up most attractive places in Germany for the blockchain industry.
arena of innovation and investment. Against the backdrop of a from $346m across 47 deals in the previous four quarters. This
global context characterized by notable contractions spanning progression underscores its pivotal influence within the region. IN CONCLUSION:
from Q3’22 to Q2’23, every continent encountered substantial Notably, the overwhelming majority of blockchain venture activity
In conclusion, this report provides an extensive overview of the
declines. Europe experienced a reduction of 46% in venture funding was concentrated in earlier-stage deals, with only four later-stage
current state of venture capital investment across continents,
and a decrease of 40% in deals, while Oceania faced the most venture capital deals out of the total 34.
with a specific focus on Germany. The integration of graphical
considerable decline, with funding plummeting by 86% and deals representations further enhances the comprehension of intricate
declining by 60%. Notably, this challenging period followed the all- BERLIN’S LEADERSHIP AND SECTOR ANALYSIS: data, providing a clear and concise portrayal of the venture funding
time high annual funding of $746b in 2021, further underscoring Berlin’s performance in the blockchain sector has not only landscape. The insights garnered from this report carry substantial
the dynamic shifts in the investment landscape. Global venture reaffirmed its status as Germany’s technological heart but also value, illuminating global investment dynamics, regional
funding totaled $370b between Q3’22 and Q2’23 across 26,266 positioned it as the undisputed blockchain hub of the nation. disparities, and the critical significance of comprehending these
deals, a 50% and 32% respective YoY decline, marking the lowest Accounting for a staggering 93% of blockchain venture funding in trends in the context of global economic conditions, technological
four-quarter period in the past three years. Germany, Berlin’s ecosystem has outperformed all other German advancements, and regulatory shifts.
regions, reflecting a robust and thriving investment landscape.
More than a comprehensive analysis, this report stands as a
GERMANY’S RESILIENCE AND POSITIONING: The city’s success can be attributed to a confluence of factors such testament to Germany’s pivotal role within the global blockchain
Despite the challenging economic conditions, Germany has as a rich talent pool, innovative startups, supportive regulatory ecosystem. It shapes new pathways, establishes benchmarks, and
emerged as a beacon of resilience. Although overall venture environment, and a strong network of investors and industry fortifies its prominence in the realm of blockchain funding.
funding in the country underwent a substantial decline of 53% experts. Berlin’s focus on cutting-edge sectors such as Blockchain
throughout the period, the count of venture capital deals only Investors, businesses, and policymakers are encouraged to
Networks; DeFi; and Data Management, Verification & Analytics has
dipped by 22%, a decline smaller than that of every continent. leverage the insights provided in this report to foster collaboration
fostered an environment conducive to sustainable advancements
Germany’s exceptional performance in this context is bolstered by and innovation within the German blockchain ecosystem, thereby
and long-term growth in the blockchain sector.
its robust investments in blockchain enterprises. While all greater contributing to a future that is robust, multifaceted, and aligned
regions experienced downturns, Germany achieved positive Furthermore, Berlin’s strategic collaborations with global with the transformative potential of blockchain technology.
year-over-year growth in blockchain funding with a 3% increase, blockchain entities and its commitment to research and
consequently securing its largest historical share of global development have played a pivotal role in attracting significant
blockchain funding at 2.4%. Europe’s share of global blockchain investments. The city’s ability to adapt to market dynamics and
venture funding reached an all-time-high of 26%, up from 18% in the align with the transformative potential of blockchain technology
previous four quarters. Demonstrating its ascendancy, Germany has set it apart as a leader and innovator. It’s important to
08
CV VC
INSIGHTS
68 CV VC GERMAN BLOCKCHAIN REPORT 2023 | PORTFOLIO
CV VC Portfolio
AdHash Assembl Asvin Blockfrauds

(CH/BUL) (USA) (DE) (UK)
Category: Category: Category: Category:
Adtech Sciencetech IoT Insurtech
Blocksport Coala Pay Coinrule Cybera

(CH) (USA) (USA/UK) (USA/CH)
Sportstech Fintech Fintech Cybersecurity
DSENT DoxyChain Fastagger Float Capital

(CH) (PL) (KE) (KY/ZA)
Category:
Category: Category: Category:
Business
Fintech E-commerce DeFi
Solutions
Forward GenTwo
Flovtec Fungies
Protocol Digital
(CH) (PL/USA)
(PA) (CH)
Category:
Content
Fintech Gaming Fintech
Management
GK8 Gummys HouseAfrica IVE.ONE

(IL) (CH) (NG) (DE)
Category:
Media/
Cybersecurity Real Estate Fintech
Entertainment
Ivorypay Leto MathForMoney Mazzuma

(NG) (USA) (ZA) (GH)
Fintech Data Analytics Edtech Fintech
NATIX
Nuvlio Orvium Pravica
Network
(USA/BR) (EE) (USA/EG)
(DE)
Category:
Network
Agritech Sciencetech IT Security
Economy
Proof Pyrpose Rens Revix

(USA) (CH) (FI) (UK/ZA)
Fintech ReFi Fashion Fintech
Scorechain ServBlock SodaWorld Sprinter

(LU) (IE) (ZA) (USA)
Category: Category:
Category: Category:
Pharma Software
Fintech Metaverse
Industry Development
Tezsure/ Utopia Music

The Swappery Tracifier
Plenty (CH/SE)
(JP) (DE)
(USA)
Category:
Food
DeFi DeFi Musictech
Industry
Web3 Wildcards
Vereign Villcaso
Sanctuary (CH)
(CH) (USA)
(ZA/USA)
IT Security PropTech Edtech Conservation

Xion YOM Zero-Code

(USA/ZA) (NL) (EE)
Fintech Metaverse Media

72 CV VC
CCV VCGERMAN
GERMANBLOCKCHAIN
BLOCKCHAINREPORT 2023 | PREVIOUS REPORTS
REPORT2023
Previous Reports
THE AFRICAN BLOCKCHAIN REPORT 2022 TOP 50 REPORT 2022 THE GERMAN BLOCKCHAIN REPORT 2022 THE AFRICAN BLOCKCHAIN REPORT 2021
ZUG, 16TH JANUARY 2023
The blockchain industry in Crypto Valley,

Switzerland and Liechtenstein
analyzed and visualized.
PUBLISHED BY CV VC AG IN COLLABORATION WITH STANDARD BANK PUBLISHED BY CV VC AG IN COLLABORATION WITH STANDARD BANK
VIEW ONLINE VIEW ONLINE VIEW ONLINE VIEW ONLINE
CV VC TOP 50 REPORT 2021
CV VC GLOBAL REPORT
1
TOP 50 REPORT 2021

CRYPTO VALLEY TOP 50 COMPANIES LISTED BY SECTOR
INSIGHTS INSIGHTS
CV VC Top 50 Report H2/2020 CV VC Top 50 Report H1/2020

Zug, February 28th, 2021 Zug, 7th of August 2020
The blockchain industry in Crypto Valley The blockchain industry in Crypto Valley,
- Switzerland and Liechtenstein - Switzerland and Lichtenstein,
analyzed and visualized. analyzed and visualized.
ZUG, 25TH JANUARY 2022
ZUG The blockchain industry in Crypto Valley,

Technology Partner In collaboration with
Switzerland and Liechtenstein
APRIL 2022
Technology Partner In collaboration with
analyzed and visualized.
VIEW ONLINE VIEW ONLINE VIEW ONLINE VIEW ONLINE
Download the all reports online:

https://www.cvvc.com/insights
73 CV VC GERMAN BLOCKCHAIN REPORT 2023 | ABOUT CV VC
About
CV VC
CV VC: Global Seed Investor Empowering Blockchain Tech Startups.
CV VC is a global blockchain investor, operating ecosystem acceleration hubs across

Switzerland, Liechtenstein, South Africa, Germany, and Portugal. As a private venture capital
firm, CV VC provides seed funding and an acceleration program to transformative technology
teams worldwide in exchange for equity or tokens. CV VC expertise extends to offering
blockchain industry consulting and advisory services to corporates and governments.
As pioneers in the Crypto Valley, the birthplace of Ethereum and home to numerous
blockchain unicorns, CV VC and CV Labs are at the forefront of shaping Web3 dynamics.
With a track record of 59 investments in blockchain startups, CV VC has an entrepreneurial
spirit, championed by its visionary founders and board members who embody the ethos of
“Founders for Founders.” Notable individuals include Alex Wassmer, an esteemed industrialist
serving as Chairman of CV VC, Yvonne Bettkober of the Volkswagen Group, Philipp Rösler ex
Vice-Chancellor of Germany, Mathias Ruch and Olaf Hannemann as founders, and Florian
Kohler as Chairman of CV Labs.
CV VC’s unwavering commitment to nurturing blockchain startups and driving innovation

allied with its comprehensive support network and extensive industry experience makes it
a trusted partner for entrepreneurs seeking to revolutionize industries through blockchain
technology.
74 CV VC GERMAN BLOCKCHAIN REPORT 2023 | 09. ABOUT
CV VC AG Authors:
Dammstrasse 16 Hank Coetzee
6300 Zug Albert Stoffberg
Switzerland
Cover Illustration:
+41 41 725 08 80 Ian Gavin
www.cvvc.com
hello@cvvc.com Editor:
Wesley Patrick
Contact:
Ulrike Lierow-Schad
+49 174 9433669 Download the full report online:
ulrike.lierow@cvlabs.com https://www.cvvc.com/insights

CV VC German Blockchain Report 2023

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THE GERMAN BLOCKCHAIN REPORT 2023

04 VENTURE FUNDING OVERVIEW

05 GERMAN BLOCKCHAIN INDUSTRY AND COMPANY

At the intersection of regional blockchain expertise stands

CV VC, in partnership with its international ecosystem

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2. FUNDING DATA a. Publicly-traded businesses that trade on recognized

GLOBAL VENTURE FUNDING EUROPEAN VENTURE FUNDING

Average annual venture deal size in In Q2’23, European

23% quarters while deals

MEDIAN DEAL SIZE

The German median deal size is GLOBAL 27%

amounting to $14.46m - still 62% and 2 which were born in 2023.

higher than the European average.

MEGA DEALS GLOBAL UNICORNS UNICORN HERD

accounted for 53% of the UNICORNS Germany saw 16 mega deals in

GLOBAL BLOCKCHAIN VENTURE FUNDING EUROPEAN BLOCKCHAIN VENTURE FUNDING

Median deal size for

PREVIOUS YEAR ANNUAL DEAL SIZE

GERMAN BLOCKCHAIN VENTURE FUNDING

9% A single mega deal,

GLOBAL DEAL DEAL FUNDING

below the global

AI 38% LOWER THAN GLOBAL MEDIAN DEAL SIZE

The State of Venture ANNUAL SECTOR-AGNOSTIC VENTURE DEALS BY REGION

At CV VC, we believe that for an analysis of blockchain-specific venture funding to be useful, it

Global Venture Funding 60%

ANNUAL GERMAN SECTOR-AGNOSTIC VENTURE FUNDING AS A %

AFRICA OCEANIIA SOUTH AMERICA MIDDLE EAST EUROPE 5%

ASIA NORTH AMERICA GERMANY

GERMANY VS EUROPE GERMANY VS GLOBAL

ANNUAL GERMAN SECTOR-AGNOSTIC VENTURE DEALS AS A %

ANNUAL SECTOR-AGNOSTIC MEDIAN DEAL SIZE BY REGION

AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA

ANNUAL SECTOR-AGNOSTIC AVERAGE DEAL SIZE VS GREATER REGION

$30,000,000 AFRICA ASIA MIDDLE EAST NORTH AMERICA OCEANIA

Global Unicorns ANNUAL SECTOR-AGNOSTIC AMOUNT OF UNICORN BIRTHS BY REGION

GLOBAL AFRICA ASIA MIDDLE EAST NORTH AMERICA

ANNUAL SECTOR-AGNOSTIC TOTAL UNICORNS BY REGION

2018 2019 2020 2021 2022

GLOBAL AFRICA ASIA MIDDLE EAST NORTH AMERICA

BLOCKCHAIN VENTURE FUNDING - A SNAPSHOT ANNUAL BLOCKCHAIN VENTURE FUNDING BY REGION

and Q1’23 the biggest decline of 77%.

 Similar to sector-agnostic funding trends, the majority of blockchain venture funding

 The long-term trend of blockchain venture funding as a percentage of global sector-

ANNUAL BLOCKCHAIN VENTURE DEALS BY REGION

SOUTH AMERICA OCEANIIA AFRICA MIDDLE EAST EUROPE

SHARE OF ANNUAL BLOCKCHAIN VENTURE DEALS BY REGION

0% 20% 40% 60% 80% 100%

SOUTH AMERICA OCEANIIA AFRICA MIDDLE EAST EUROPE

investing accessible and dynamic.

GERMAN BLOCKCHAIN VENTURE FUNDING BLOCKCHAIN VENTURE FUNDING BY REGION

BLOCKCHAIN VENTURE DEALS BY REGION

AFRICA ASIA MIDDLE NORTH OCEANIA SOUTH EUROPE GERMANY

Q3’21 - Q2’22 Q3’22 - Q2’23

Q3’21 - Q2’22 Q3’22 - Q2’23 Q3’21 - Q2’22 Q3’22 - Q2’23

EUROPE VS GLOBAL GERMANY VS GLOBAL GERMANY VS EUROPE

ANNUAL BLOCKCHAIN VENTURE FUNDING AS A % OF QUARTERLY BLOCKCHAIN VENTURE FUNDING AS A % OF

GLOBAL EUROPE GERMANY GLOBAL EUROPE GERMANY

ANNUAL BLOCKCHAIN VENTURE DEALS AS A % OF QUARTERLY BLOCKCHAIN VENTURE DEALS AS A % OF

GLOBAL EUROPE GERMANY GLOBAL EUROPE GERMANY

QUARTERLY BLOCKCHAIN VENTURE FUNDING

GERMANY EUROPE GLOBAL GERMANY QoQ EUROPE QoQ GLOBAL QoQ

GLOBAL EUROPE GERMANY GLOBAL EUROPE GERMANY

Similar to sector-agnostic funding trends, the majority of blockchain venture funding

The long-term trend of blockchain venture funding as a percentage of global sector-