CoinDesk Consensus

The European crypto industry has seen record levels of funding bucking the 2022 bearish trend. Crypto startups raised over $5.7 billion in 2022, while the industry’s global and U.S. venture capital has dwindled. This is a notable increase from his $5 billion EU company that he raised in 2021.

crypto startup investment
Chart showing VC investments in European cryptocurrency startups from 2016 to 2022 (Source: RockawayX)

According to data from Rockaway X And Dealroom, Europe has the highest number of startups working on blockchain and crypto solutions, surpassing both the US and Asia. is. Further down the startup funding trajectory, the United States, with the highest number of unicorns, leads the way.

European crypto startups
Chart showing number of cryptocurrency startups by location in 2022 (Source: RockawayX)

European firms accounted for 20% of all early-stage crypto startup funding worldwide, while US firms dominated funding rounds of over $100 million.

European Crypto Startup VC
Chart showing crypto VC investments by location and round stage in 2022 (Source: RockawayX)

In 2022, crypto VC funds will collectively raise over $35 billion, pushing crypto companies to the forefront of venture capital. Despite his $35 billion, which was only about 16% of total VC funding last year, this is the highest amount ever raised in the industry.

European Crypto Startup VC Funding
Chart showing global crypto VC funding and number of funds from 2017 to 2022 (Source RockawayX)

The ongoing bear market has yet to scare investors. RockawayX CEO Viktor Fischer said every market cycle (whether bearish or bullish) increases VC activity.

“In the past, VC funding was relatively stable or moved anti-cyclically during cryptocurrency price declines. Investments made when digital asset prices fell. embodied in the traction of technology and usage, along with a “bullish market” price recovery. “

Fischer noted that some of the most prominent companies in the cryptocurrency space today, including Uniswap, OpenSea, Dapper Labs and Sorare, were funded and launched during the crypto winter of 2018. bottom.

Samantha Bohbot, Chief Growth Officer at RockawayX, said the biggest difference between investing in a bull market and a bear market is the speed of execution.

“As investors, we see the slowdown changing the way deals unfold. Funding used to be quick — applications flooded in, sometimes closing days after the process started. — Now, funding often spans months.”

Decentralized finance (DeFi) saw a 120% increase in funding, but centralized finance (CeFi) still leads when it comes to VC investment.

Chart showing VC investments in crypto financial services in 2022 (Source: RockawayX)

By Jules

Leave a Reply