17 blockchain startups worth keeping an eye on, as recommended by venture capitalists:
With significant legislation taking effect in both the US and EU, European investors in blockchain are beginning to re-enter the market. After enduring a challenging period of funding downturns, blockchain startups in Europe are now displaying signs of resurgence.
The past two quarters have witnessed increased deal activity, with $386 million invested in European blockchain startups across 68 deals in the first quarter of this year. This uptick follows the implementation of landmark legislation in both the US and Europe, expected to bolster confidence in cryptocurrencies as an asset class.
Earlier this year, the US Securities and Exchange Commission (SEC) approved 11 bitcoin exchange-traded funds (ETFs), providing retail and institutional investors with regulated exposure to the world’s first blockchain-based cryptocurrency.
In Europe, the passage of the EU’s landmark Markets in Crypto-Assets (MiCA) law in May last year establishes clear regulations for crypto companies to operate across the European bloc.
Given these regulatory developments, we reached out to some of Europe’s leading venture investors specializing in crypto for their insights into emerging startups in the sector. The caveat was that these startups had to be non-portfolio companies, and here are their selections:
France
Morpho Labs – France
Morpho Labs aims to revolutionize financial services by constructing the most secure, decentralized lending protocol on the Ethereum blockchain. Focused on democratizing lending, the platform utilizes smart contracts to match lenders with borrowers, optimizing conditions such as interest rates and loan terms. This automated and transparent approach enhances accessibility to financial services, particularly for those marginalized by traditional banking systems. With over $1 billion in deposits and accessibility through lending wallet Instadapp, Morpho has garnered trust and is witnessing increasing adoption globally.
Swaap — France
Swaap stands out within France’s burgeoning DeFi ecosystem, offering sophisticated market-making strategies to address challenges faced by liquidity providers, such as impermanent loss. By providing higher yields and reducing risks, Swaap enhances liquidity provision in the face of crypto trading volatility.
Bubblemaps — France
Bubblemaps specializes in high-performance data visualization and analysis for blockchain data, catering to various applications from financial tracing to marketing strategy development. The company shares insightful visual data investigations on crypto-related topics, facilitating informed decision-making in the crypto space.
Hylé — France
Hylé is developing a blockchain focused on verifying zero-knowledge proofs, aiming to provide a modular settlement layer for ZK proofs using any execution engine or proof system.
Kiln — France
Kiln is a prominent player in enterprise-grade staking, simplifying access to staking for crypto companies and products. With over $7 billion staked and integration with leading crypto products, Kiln retains significant value within the protocol.
Usual Money — France
Usual Money is a stablecoin issuer, backed by real-world assets like short-term treasury bonds. With a recent $7 million funding round, Usual Money competes with large US stablecoin issuers, signaling significant potential for growth.
Portugal
Mira — Remote but mostly Portugal
Mira offers an open-source AI platform for model and data orchestration, enabling AI contributors to be compensated with crypto tokens. By building trust among datasets and models on blockchains, Mira facilitates a transparent audit trail for end users.
MatrixOne — Portugal
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 — Portugal
Ethena is a synthetic dollar protocol built on Ethereum, offering a yield-bearing “internet bond” through its USDe token. With impressive yields and market capitalization, Ethena has attracted investor attention.
United Kingdom
Euler Finance — UK
Euler is a lending protocol facilitating lending and borrowing of various crypto assets, with a liquidation mechanism that retains value within the protocol.
Compass Labs — UK
Compass Labs offers simulation tools for building and testing trading strategies for decentralized finance protocols, enhancing user decision-making in dynamic market conditions.
Switzerland
Validation Cloud — Switzerland
Validation Cloud provides high-performance blockchain node infrastructure, surpassing competitors in execution across most geographies.
Centrifuge facilitates the tokenization of real-world assets on blockchains, bridging traditional financial products into DeFi and streamlining portfolio management for asset managers.
Serbia
Tenderly offers a full-stack web3 infrastructure solution, aiding smart contract execution, debugging, and optimization for web3 developers.
Germany
Finoa is an institutional-grade custody provider supporting multiple networks and facilitating storage, staking, and trading activities for over 180 assets.
Romania
BWare Labs provides infrastructure and development solutions for web3 builders, offering RPC endpoints, programming SDKs, and blockchain indexing services.
Netherlands
Union — Netherlands
Union offers interoperability solutions, allowing startups to choose blockchains for development and maximizing speed, decentralization, and permissionless use through advanced cryptography.
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.
The highlighted startups in this article come with recommendations from notable venture capital firms: LocalGlobe, headquartered in London, specializes in seed investments; XAnge operates across France and Germany, focusing on European ventures; 1kx targets early-stage investments within the crypto ecosystem; RockawayX, with offices in Prague, London, and Zurich, specializes in web3 investments; Eurazeo, based in France, is a prominent private equity and venture capital firm; and Greenfield Capital, located in Berlin, is a crypto-focused VC fund.
Disclaimer
Be forewarned that the content within our website is presented in utmost sincerity and intended for informational purposes only. Any course of action undertaken based on this information is solely at the reader’s discretion, assuming full responsibility for their decisions. This content also does not seek to persuade or advise anyone to invest, as it does not offer financial or trading guidance. We urge you to exercise caution and conduct thorough research, seeking guidance from a skilled financial advisor, before engaging in cryptocurrency or securities investments.
