Europe has a higher number of crypto startups than any other world region, and London is its “crypto hub”, a new study has found.
A study by web3 investment firm Rockway listed 3,977 cryptocurrency and web3 startups as having their headquarters in Europe.
Europe had the largest number of startups working on blockchain and crypto solutions, with the US listed as the next highest region, with 3,357 startups.
London came out on top as the crypto hub of Europe in terms of venture capital investment in 2022, with $1.6bn (£1.3bn) invested in 2022.
“London remains the crypto hub of Europe, followed by the Swiss crypto valley hotspots of Zug and Zurich. Berlin and Paris compete for 3rd place”, the study said.
However, Mike Crosbie, CBO at poundtoken.io, claims the study failed to include that the UK ranks as one of the lowest in Europe for percentage of crypto ownership amongst the population.
“For London to truly become a crypto hub beyond just venture capital backing, we must encourage greater integration through awareness and education at a policy level.
“Only then will the country and capital fully benefit from blockchain’s positive effects on the economy and daily life”, he added.
Crypto startup funding
Across the world, cryptocurrency venture capital funding hit $31.4bn in 2022, with Europe also leading the way.
European companies accounted for 20% of total global early-stage crypto startup funding. The most dominant sub-category for investment was financial services within web3.
In Europe, investment in startups expanded, reaching an all-time high of $5.7bn in 2022, which bucked the overall downward trend, as global and US venture capital funding in the cryptocurrency sector contracted in the same year.
However, “while Europe holds its weight in early-stage company funding, US companies dominated funding rounds of around $100m”, according to the study.
Europe fell behind the US in the number of startups with over a million dollars of funding and companies with a value of over $1bn, known as unicorns.
European startups that have reached unicorn status include institutional crypto custody company Copper.co, currently valued at $2bn, which raised $181m in its series C investment round.
Crypto startup Blockchain.com, now valued at $14bn, also became a unicorn company.