Tokyo (SCCIJ) – Despite the downturn of cryptocurrencies, the number of companies in Switzerland’s Crypto Valley increased slightly in 2022, according to the Top 50 Report from the investment company Crypto Valley Venture Capital (CV VC). However, the valuation of the 50 largest blockchain companies fell sharply. Overall, the assessment of the development of the region, which includes Switzerland and Liechtenstein, was positive.
The blockchain industry in the canton of Zug has resisted last year’s cryptocurrency downtrend.
Thriving industry
2022 has been a tough year for the global blockchain ecosystem. All asset classes have undergone a downturn due to macroeconomic reasons. As a risky asset class, Crypto has been especially hit, and the subsequent collapses of faulty projects (Luna, Celsius, Arrow, FTX) worsened the situation.
“Consequences were felt in the Crypto Valley. However, the data also highlights that Crypto Valley is resilient, sustainable, and growing,” said CV VC in its Top 50 Report. “Concurrently, the observation of decent funding rounds in 2022, as well as the improved valuation for companies, shows that in Crypto Valley, despite the adversarial circumstances, the blockchain industry is thriving.”
Focus on Zug
The Swiss Crypto Valley is the name for a cluster of blockchain start-ups in the area around the town of Zug near Zurich. According to the report, 1,135 blockchain companies are currently based in the Valley. In 2022, a total of 190 new companies were registered, but at the same time, 183 were dissolved. Employment fell by 4 percent across Crypto Valley.
Geographically, the canton of Zug remains the heart of Crypto Valley, with almost half of the companies located there (510). This is followed by the canton of Zurich (197), Liechtenstein (97), and the cantons of Geneva (70) and Ticino (50).
The valuation of the top 50 companies in Crypto Valley is 185 billion US dollars, which is made up of 175.6 billion dollars for blockchain platforms by market capitalization and 9.7 billion dollars for commercial companies by stock valuation. This makes the 50 largest companies worth around 70 percent less than they were a year ago when the valuation was at 611.7 billion US dollars.
Resilient financing
However, the evaluation of financing rounds indicates resilience. Committed capital for the top 50 companies increased by 85.2 million US dollars (+2.7 percent) to 3.2 billion US dollars. The Zug-based Seba Bank raised the largest sum, with 110 million dollars.
There are currently still nine unicorn companies operating in Crypto Valley, compared with 14 a year ago. However, two commercial blockchain companies – 21Shares and Gnosis Safe – have achieved unicorn status, indicating the maturity of Crypto Valley, according to CV VC. The other seven unicorn companies are blockchain platforms.
In the analysis of CV VC, Crypto Valley is developing in line with the global market turmoil. The company sees the positive regulatory environment in Switzerland and Liechtenstein as a success for the region. Its Top 50 Report, now in its 8th edition, focuses on market fundamentals and valuation developments in Crypto Valley, which includes Switzerland and Liechtenstein. You can download the full report from here.
Text: SCCIJ based on material of CV VC, Photo: Wikipedia CC BY-SA 3.0
