The report details crypto VC funding trends in Europe
RockawayX (a venture capital firm backing leading Web3 projects) and Dealroom published its State of European Crypto Funding report.
“The crypto market has been defined by 4-year cycles. During the 2018 crypto winter, the total digital asset market cap fell by 80%, but startup funding activity held steady. Many of today’s most notable crypto companies were funded and launched in that period”
Published in full here, the highlights of the report include:
- Unicorn creation across all geographies peaked in 2021.
- European crypto startups attracted record funding ($5.7BN) in 2022, while US crypto startup funding declined YoY.
- Europe has the largest number of crypto startups but lags in late-stage companies.
- European startups account for a substantial portion of early-stage crypto funding globally.
- US investors’ share of European crypto startup Seed and Series A funding was 21% and 29%.
- London remains the crypto hub of Europe.
- “Web3” is rising, with users mounting, big brand entrants, and increased venture funding. More than half of European crypto VC funding goes to companies building financial products and services.
- Funding in companies building developer tools, roll-ups, and “Layer 1s” accelerated the most in 2022.
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“The crypto market has been defined by 4-year cycles. During the 2018 crypto winter, the total digital asset market cap fell by 80%, but startup funding activity held steady. Many of today’s most notable crypto companies were funded and launched in that period,” said Viktor Fischer, Chief Executive Officer, RockawayX. He added, “With an increasingly hostile US regulatory environment, crypto industry onlookers are taking funding to other regions. Europe already has a plurality of crypto startups and a top early-stage ecosystem. It could attract the late-stage funding that catapulted US leaders in the last cycle.”
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“As investors, we see the slowdown change the way deals play out; where fundraisers were once fast-oversubscribed and frantically closed, sometimes in days after process kick-off, raises can stretch months now,” said Samantha Bohbot, Chief Growth Officer & Investor, RockawayX.
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