Capital risk – Europe could attract blockchain and crypto startups who want it raise funds during this crypto winter. The old continent even manages to overtake Asia in this area.
Blockchain business financing: the end of the green saga
Crypto winter is fattening the bears, but the cold cuts the meals for startups in the sector. The decline is in double digits: globally recorded venture capital funding awarded to blockchain companies in the second quarter of this year. down 22%in the amount of 9.8 billion dollars, compared to 12.5 billion in the previous period.
Crypto markets in the red managed to end seven consecutive quarters of growth in global financing of blockchain companies, through venture capital funds. The last drop was in 2020.
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A more attractive Europe during a bear market
In this context, start-ups that want to quench their thirst for funding could head to Europe. The old continent manages to withdraw from the game, in the middle of a bear market.
In the second quarter, the amounts collected by blockchain venture startups in Europe, you know an increase of 25%. compared to the previous period, according to data from The Block Research.
It is not surprising that the companies that invest most actively in European projects are big names in the sector, such asAnimoca Brandsof Coinbase Venturesof GSRof Polygon Studiosor of Jump Capital.
Unbeatable Uncle Sam, Africa as an exception
Europe is in the green, but Africa is doing better. Funds raised by blockchain venture startups on the record of the African continent 189% increase, from the first to the second trimester. Africa is the only continent that shows such a rate, which exceeds 100%.
Asia and the United States followed the global trend, with declines of 43.4% and 23.8% respectively over the period. A fall on one side and a rise on the other. LEurope is slightly ahead of Asia in terms of share of global venture capital funding dedicated to blockchain companies, in the second quarter.
The United States, on the other hand, keep your place despite this 23.8% decline, collecting $5.4 billion during the period, compared to $1.8 billion in Europe.
This is why the old continent increases its attractiveness bear market. Context did not prevent this large cryptocurrency exchange confirmed his love for Europe.
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