Swiss venture capital investors have opened a new office in Berlin. The German capital is one of the most thriving European startup centers.
The startup scene in Europe is quite a diversified one, particularly in the fintech sector, with the maturity and performance of the ecosystems varying widely from country to country. For an investment company from Zug-based Crypto Valley, however, its northern neighbor is a particular standout.
Top tap into that Crypto Valley Venture Capital (CV VC) opened a new office in Germany, the investment firm announced Monday. The new Berlin office is the fourth location for CV VC, adding to locations in Zug, Vaduz, and Cape Town.
Germany Ahead of Switzerland
For CV VC CEO and founder Mathias Ruch, the move to Germany is a logical step. «Berlin has been a highly successful and creative fintech and startup hub for years,» he tells finews.com.
The e-commerce capital of Europe is attracting more and more blockchain-savvy entrepreneurs, he adds. Since CV VC invests in early-stage blockchain startups, it was clear to Ruch that Berlin was the place to be when expanding to Europe.
According to the study by Coincub, Germany offered the world's most favorable environment for blockchain and crypto, according to third-quarter results. The parameters included ecosystem, outlook, taxes, and regulation. The US, which led the ranking last quarter, fell to seventh place with Switzerland second.
Quiet and Serious
Florian Kohler, CV Labs Chairman, says he is surprised at how Berlin authorities positively accompany and support the startup and innovation scene. In contrast to Dubai and Lisbon, the blockchain scene in Berlin is not as noisy, he says. The fact that work and development are going on in the background has convinced Kohler.
CV VC was founded four years ago and has a portfolio of 50 startups globally. In addition to investments, CV VC operates its own blockchain hubs with CV Labs, where the threads of the respective ecosystems come together.
Vibrant Startup Hubs
McKinsey counts not only Berlin but also Amsterdam, London, Lisbon, Madrid, and Paris among the vibrant European startup. A study from the firm revealed that fintechs are an important source of growth in Europe, creating about 134,000 jobs in recent years, whereas traditional banks reduced their workforces.
As of June 2022, the report adds that European collectively brought in nearly 430 billion euros ($428 billion) of added value, more than the combined market capitalization of the seven largest listed banks in Europe.
More Successful than Banks
The European fintech sector moved quickly from the fringes of the European financial landscape to its center. Each of the seven largest European economies - France, Germany, Italy, the Netherlands, Spain, Switzerland, and the UK - now has at least one fintech among the five largest banking service providers, according to McKinsey.
It defines a fintech as a digital, technology-driven financial services company founded after 2000, has raised funds since 2010, is not a direct bank, and is not yet a mature business.
