European Blockchain Startups Surge Amidst Regulatory Tailwinds and Deal Activity Boom

Highlighting 17 promising blockchain startups across Europe, this article presents insights from leading venture capital firms specializing in crypto. As regulatory frameworks in both the US and EU enhance confidence in cryptocurrencies, European startups are experiencing resurgence in funding. These selected startups span various industries and offer innovative solutions in decentralized finance, data visualization, AI, and enterprise-grade staking, positioning them for significant growth and impact in the evolving crypto landscape.

European Blockchain Startups Gain Momentum Amidst Regulatory Tailwinds

Surge in Deal Activity Signals Resurgence in European Blockchain Innovation

In the wake of substantial regulatory developments in both the United States and the European Union, European investors in blockchain technology are re-entering the market with renewed vigor. After a period of funding challenges, blockchain startups in Europe are exhibiting signs of resurgence, with a notable increase in deal activity over the past two quarters.

The first quarter of 2023 witnessed a surge in investment, with a total of $386 million invested in 68 European blockchain startups. This uptick follows the implementation of landmark legislation in both the US and Europe, which is expected to bolster confidence in cryptocurrencies as an asset class.

Landmark Legislation Paves the Way for Blockchain Adoption

Earlier this year, the US Securities and Exchange Commission (SEC) approved 11 bitcoin exchange-traded funds (ETFs), granting retail and institutional investors regulated exposure to the world's first blockchain-based cryptocurrency.

In Europe, the passage of the EU's Markets in Crypto-Assets (MiCA) law in May 2022 established clear regulations for crypto companies operating across the European bloc. This regulatory framework is expected to enhance investor confidence, driving further adoption of blockchain technology.

Exploring Emerging Blockchain Startups

To gain insights into the most promising emerging startups in the European blockchain space, CoinFactiva reached out to leading venture investors specializing in crypto. The following startups, which are non-portfolio companies of these investors, represent a diverse range of innovative solutions poised for significant growth and impact:

France

• Morpho Labs: Aims to revolutionize financial services with a secure and decentralized lending protocol on the Ethereum blockchain.
• Swaap: Provides sophisticated market-making strategies to address challenges faced by liquidity providers in DeFi.
• Bubblemaps: Specializes in high-performance data visualization and analysis for blockchain data, aiding in financial tracing and marketing strategy development.
• Hylé: Develops a blockchain focused on verifying zero-knowledge proofs, enabling a modular settlement layer for ZK proofs using any execution engine or proof system.
• Kiln: Simplifies access to staking for crypto companies and products, holding over $7 billion in staked assets.
• Usual Money: Issues stablecoins backed by real-world assets, signaling significant potential for growth in the European stablecoin market.

Portugal

• Mira: Offers an open-source AI platform for model and data orchestration, compensating AI contributors with crypto tokens.
• MatrixOne: Enables the creation of AI avatars for various online contexts, preparing to launch a decentralized AI character protocol on the Solana blockchain network.
• Ethena: Develops a synthetic dollar protocol on Ethereum, offering an "internet bond" with impressive yields.

United Kingdom

• Euler Finance: Facilitates lending and borrowing of various crypto assets with a liquidation mechanism that retains value within the protocol.
• Compass Labs: Provides simulation tools for building and testing trading strategies for DeFi protocols, enhancing user decision-making.

Switzerland

• Validation Cloud: Delivers high-performance blockchain node infrastructure, surpassing competitors in execution across most geographies.
• Centrifuge: Tokenizes real-world assets on blockchains, bridging traditional financial products into DeFi and streamlining portfolio management.

Serbia

• Tenderly: Offers a full-stack web3 infrastructure solution for smart contract execution, debugging, and optimization.

Germany

• Finoa: Provides institutional-grade custody services for over 180 assets, supporting multiple networks and facilitating storage, staking, and trading activities.

Romania

• BWare Labs: Delivers infrastructure and development solutions for web3 builders, offering RPC endpoints, programming SDKs, and blockchain indexing services.

Netherlands

• Union: Develops interoperability solutions that allow startups to choose blockchains for development, maximizing speed, decentralization, and permissionless use.

These startups represent a diverse range of innovative solutions in the blockchain space, each poised for significant growth and impact in the evolving crypto landscape.

Endorsements from Noted Venture Capital Firms

The highlighted startups in this article come with recommendations from notable venture capital firms: LocalGlobe (London), XAnge (France and Germany), 1kx (global crypto ecosystem), RockawayX (web3 investments), Eurazeo (France), and Greenfield Capital (Berlin).

Disclaimer:

This article provides informational content only and should not be construed as financial advice. Readers are advised to conduct thorough research and seek guidance from qualified financial advisors before making any investment decisions.