State of blockchain VC investments in Europe

June 7, 2020

Executive Summary

  1. In 2019, around $700m was invested in European blockchain companies, which is 24% of the $2.8bn invested globally. However, around 30% of 800 global blockchain deals were European — meaning Europe has smaller deal sizes ($3m average deal size in Europe vs. $3.6m globally)
  2. UK still dominates, with 20% of deals, followed by Switzerland, Germany, Spain, Netherlands, France and CEE (Central and Eastern Europe)
  3. European companies that raised over $50m are Bitfury ($170m), Ledger ($88m), Blockchain.com ($70m), Fnality ($63m). However, Europe was also home to some of the largest ICOs, such as TaTaTu ($575m), Waves ($142m), Envion ($101m), Bankera ($100m)
  4. Europe has numerous universities with research focused on Distributed Ledger Technologies
  5. To increase the amount invested into European blockchain companies and the number of European deals, Europe needs to solve 2 main barriers: A) lack of large European VCs, B) unclear and incoherent regulatory environment across EU countries

 

Globally in 2019, blockchain funding fell to $2.8bn, but the number of deals remained stable


Source: CB Insights Blockchain Report

At the same time, share of European deals increased from 27% to 30%


Source: PWC — 2nd global crypto M&A and fundraising report April 2020

In 2019, European blockchain companies received $700m investments and blockchain was the 6th largest vertical


Source: Atomico — State of European Tech 2019

UK still dominates, with 20% of deals, followed by Switzerland, Germany, Spain, Netherlands, France and CEE (Central and Eastern Europe)


Source: Crunchbase “blockchain” companies in “Europe” region in 2018 and 2019; Etienne Brunet newsletter on European crypto ecosystem HERE.

European companies that raised over $50m are Bitfury ($170m), Ledger ($88m), Blockchain.com ($70m), Fnality ($63m). However, Europe was also home to some of the largest ICOs, such as TaTaTu ($575m), Waves ($142m), Envion ($101m), Bankera ($100m)


Source: Crunchbase “blockchain” companies in “Europe” region

Europe has numerous universities with research focused on Distributed Ledger Technologies


Source: Rockaway Blockchain Fund research

Additional European universities with DLT research: Université du Luxembourg https://wwwen.uni.lu/, École Polytechnique https://www.polytechnique.edu/.

To increase the amount invested into European blockchain companies and the number of European deals, Europe needs to solve 2 main barriers: A) lack of large European VCs…


Source: https://101blockchains.com/top-blockchain-investors/

There is not one European VC present in the list of top 50 blockchain investors: https://www.blockchain-council.org/blockchain/top-50-venture-capital-investors-in-blockchain/

…and B) unclear and incoherent regulatory environment across EU countries


Source: Atomico — State of European Tech 2019

Although the European Commission has launched a consultation document on how to improve regulatory environment,the deadlines for implementation are unclear: https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/2019-crypto-assets-consultation-document_en.pdf

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Here is a short Powerpoint presentation for download:
https://www.slideshare.net/vikino/state-of-blockchain-vc-investments-in-europe

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