VC Funding in German Blockchain Startups Fell 58%

Global and European Blockchain Funding Grew 33% and 17%

Berlin, Germany / Zug, Switzerland, November 19, 2025 – CV VC, a blockchain venture capital firm, in collaboration with the Frankfurt School Blockchain Center (FSBC), has released the German Blockchain Report 2025, the third edition in a data-driven series that charts Germany’s blockchain evolution through the lens of venture capital. This year’s analysis reveals a decisive recalibration.

·       Germany’s blockchain ecosystem resets amid regulatory and capital realignment.

·       Germany’s VC blockchain funding dropped 58% year-on-year to $44.7 million across 13 deals.

 The decline marks blockchain’s smallest share of Germany’s total venture capital landscape in four years, just 0.5%, as investors recalibrate toward smaller, regulation-aligned deals.

 The report analyzes blockchain venture data from Q3 ’24 to Q2 ‘25. Globally, blockchain companies raised $13.2 billion across 998 deals, representing a 33.1% increase in funding but a 20.3% decline in deal count — a sign of market consolidation. Europe attracted $2.41 billion across 216 deals, up 16.7% in funding from the previous year but down 29.6% in deal volume.

 Germany’s share of that capital has tightened sharply. The median deal size dropped to $2.0 million, less than half the European average, reflecting a shift toward milestone-based funding. Berlin accounted for over 70% of national blockchain funding, underscoring both the city’s dominance and the ecosystem’s regional concentration risk.

 The report attributes the reset to a dual regulatory push: the Markets in Crypto-Assets Regulation (MiCAR) and Germany’s Crypto Markets Supervisory Law (KMAG). Together, they have imposed stricter compliance and authorization standards, redirecting capital toward ventures in data integrity, verification, regulated tokenization, and analytics.

 “The German blockchain landscape is transitioning from experimentation to disciplined execution,” said Olaf Hannemann, Co-Founder of CV VC. “The foundations for leadership are here. Growth now depends on aligning policy and investment to unlock the next scale-up phase.”

 The Frankfurt School Blockchain Center sees the new phase as an evolution toward sustainability rather than long-term contraction.

 “Capital is discriminating toward compliance-ready, audit-proof building blocks. Identity, data integrity, and regulated rails are the new growth engines,” said Prof. Co-Pierre Georg, Head of the Frankfurt School Blockchain Center.

 In light of reduced capital inflows, the report concludes that Germany’s blockchain ecosystem is entering a phase of quality over quantity. While early-stage innovation remains active, the country’s global competitiveness will hinge on its ability to bridge the growth-stage funding gap and ensure regulation serves as an enabler of innovation rather than a constraint.

Contributors to the report include Ledger Enterprise, Sopra Financial Technology, Crypto Finance, Blockpit, Bitvavo, Animoca, YPOG and the Digital Euro Association, each examining how Europe’s regulatory frameworks are shaping blockchain adoption and all reflecting the depth and grit of those building on the frontier technology to achieve efficiencies and economic good. Berlin Partner provides analysis on Berlin’s enduring leadership as a European blockchain hub.

 "While funding recalibrates, capital is increasingly directed toward regulated entities,” said Sebastien Badault, Executive Vice President of Enterprise at Ledger. “The challenge is bridging the growth-stage gap with secure, scalable infrastructure. Ledger Enterprise provides the hardware security and governance backbone enabling German projects to scale globally, securely, and compliantly.”

 The CV VC German Blockchain Report 2025 is available for download here, graphs are available here.