The German Blockchain Index

A study by BlockState in collaboration with BTC ECHO including research of 195 companies and a survey among over 100 companies about the situation of the German blockchain ecosystem and the companies that shape it.

  • By far the most blockchain start-ups have their headquarters in Berlin. 89 companies in total.
  • German blockchain companies are active in 34 different sectors.

Berlin, November 29 2018 — The fast growing start-up scene in Berlin attracts founders from all over the world. With around 500 tech start-ups per year, Berlin is home to most of such ventures in Germany. The study presented below shows that Berlin start-ups also play a leading role in the use of innovative blockchain technology. 89 blockchain companies are located here, making Berlin the definitive blockchain capital of Germany.

Prof. Dr.-Ing. Katarina Adam, Professor for Blockchain Technology and Applications at the university HTW Berlin:

“We are in a very comfortable situation here in Berlin. However, we should not take this for granted, but appreciate it. Therefore, we must continue our efforts to create a solid environment for the blockchain community. As a start-up or for entering the industry, Berlin is ideal, but for the further steps of corporate development, companies will leave the city.”

Experts all over the world agree that Blockchain has the potential to fundamentally change almost every area of the economy. BlockState, the provider of blockchain-based banking infrastructure, and BTC-ECHO, the largest German blockchain publication, have published a study that provides a meaningful insight into how the blockchain ecosystem has developed in Germany based on extensive research and a survey among more than 100 blockchain start-ups on business areas, revenues, types of financing and much more.

Paul Claudius, CEO of BlockState says:

“Despite the less progressive regulatory environment in international comparison, the German blockchain industry is growing substantially. Germany offers enormous advantages, such as a strong middle class as a beneficiary of the efficiency-enhancing Blockchain, the availability of qualified personnel and a lively start-up scene. In the long run, however, this can only be maintained with a clear regulatory roadmap.”

Sven Wagenknecht, editor-in-chief of BTC-ECHO:

“As the largest German-language blockchain medium, we know that the German blockchain ecosystem has no reason to hide. What was missing so far, however, was a meaningful study providing an overview of the numerous blockchain start-ups,”

The complete results of the study can be viewed here: www.blockstate.com/german-blockchain-index

The methodology used is explained at the end of this press release.

Selected findings

Location: By German standards, most of the blockchain companies are located in the state of Berlin by a large margin — a total of 89 companies. In second place comes the Free State of Bavaria with 28 companies. In the federal states of Brandenburg, Mecklenburg-Western Pomerania, Saarland, Saxony-Anhalt and Thuringia not a single relevant blockchain startup is located.

Industries: The German blockchain companies surveyed operate in 34 different sectors. The majority of start-ups are active in the financial sector with a clear lead — 37 in total. With 13 companies, the entertainment industry follows in second place.

Revenues: 72 of the surveyed blockchain startups indicated that they already had revenues. With regard to the turnover totals, 11 startups reported that they had less than 50,000 euros in sales. 3 companies generate more than 1 million euros in sales annually.

Sector: The current data situation shows that employment in the B2B sector is currently the most profitable. 14 companies are active in this sector. The majority of startups operating in this sector, which already generate revenues, state that they generate between 100,000 euros and 500,000 euros in sales per year. Two companies reported a turnover of up to 5 million euros per year.

Half of the startups employed in the B2B2C segment (5) currently generate less than 50,000 euros a year. All companies that generate revenue in the B2C (2) segment generate less than 50,000 euros a year. None of the companies surveyed that are active in the C2C sector are currently generating sales.

HR: With a share of 53 percent, more than half of all block-chain start-ups surveyed employ fewer than ten people. Only one company stated that it had between 90 and 100 employees.

Funding: The majority of start-ups finance themselves through initial coin offering (ICO) (86) or private financing (63). State subsidies (3) only make up a small proportion of the total. Self-financing (31) and investments through strategic participations of other companies (23) are in the middle range.

86 start-ups stated that they had received financing through ICOs. Most companies received between 10–20 million euros. Only one company received between 50–100 million euros. However, ICOs are a downward trend. While most of the companies founded in 2016 (73%) were financed by ICOs, in 2018 the figure was only 34%.


For questions about this study, please contact the email address below.

All data and graphics may be used by third parties with a reference to the source: BlockState.com


About BlockState: The Tech-Startup, located in Berlin and Zug, Switzerland, was founded in 2017. BlockState develops blockchain technology based, transparent, adaptable and efficient infrastructure products for financial institutions to facilitate their access to the crypto-asset market and streamline their existing processes.

About BTC-ECHO: BTC-ECHO is the leading German-language media platform in the areas of blockchain and crypto currencies. They report daily on all important developments in the blockchain scene and the digital currency markets and provide their readers with a critical and independent classification of the news situation.

Methodology:

The study included a thorough research of 180 different companies as well as a survey in which representatives of more than 100 blockchain startups in Germany were interviewed on various topics.

In order to obtain a cross-section of the German blockchain ecosystem that is as meaningful as possible, various categories that are decisive for an assessment of the ecosystem were first defined. These include general information about the company and its business model, the composition and size of the team as well as the type and scope of financing.

The latter was found to be particularly crucial, as there seems to be little difference in public perception between blockchain and crypto currencies. Therefore, it is often assumed that each company in the blockchain sector also finances itself through an Initial Coin Offering (ICO).