Funding for African Blockchain Startups Rises

Venture capital funding for blockchain startups has increased by a whooping 1,668%, outpacing all other startups by 11 times. This is according to the inaugural African Blockchain Report by Crypto Valley Venture Capital (CV VC), which provides a compelling structural overview of the emerging blockchain sector and rousing insights regarding its funding.

The findings of the report demonstrate how nations and stakeholder capitalists are beginning to step in and embrace Africa’s self-determining participation in the fourth industrial revolution.

This report by CV VC report moves past crypto and looks at the underlying revolutionary blockchain movement, set to enable Africa to transact and interact for the well-being of its people and economies.

This year, blockchain startups raised $91 million in Q1 of 2022, which is the staggering 1,668% Year on Year increase from Q1 of the previous year.

In comparison between Q1 2021 and Q2 2022, venture funding for African blockchain startups far outpaces the growth seen in general African venture funding. The report shows a 1,668% increase which is higher by 11 times in comparison to 149% growth in Q1 2021.

The report also shows that Africa is the fastest adopting crypto continent globally, yet it has only a 0.5% share of total global blockchain venture funding, which stands at $25.2 billion. African blockchain venture funding of $127 million in all of 2021 is similar in size to a single blockchain ‘mega-deal’ of which there were 59 globally.

Blockchain in Africa is unique as it is driving from the bottom up, where essential industries are propelling forward with blockchain tech; agriculture, mining, remittances, inclusion, identity, and property, to name a few.

CV VC intends to lend its renowned expertise to enable Africa, the world’s second-largest continent in both size and population to achieve its true potential. As a blockchain investor and builder of international startup ecosystems, CV VC commits to investing in the broader applicability of blockchain to solving problems and creating new markets beyond crypto.

Crypto Valley Venture Capital (CV VC), as an initiator of Crypto Valley – the world’s most mature blockchain hub, with an enviable regulatory landscape and 14 blockchain Unicorns, intends to lend its renowned expertise to enable Africa, the world’s second-largest continent in both size and population to achieve its true potential. As a blockchain investor and builder of international startup ecosystems, CV VC commits to investing in the broader applicability of blockchain to solving problems and creating new markets beyond crypto.

According to CV VC’s Gideon Greaves, the objective with the African Blockchain Report is to share a data-driven account of blockchain in Africa and begin an annual collation of benchmarkable venture data and solidly referenced African insights.

“We focused the report on a data set of 40 African blockchain companies. This way, we can be sure of the relevance of facts from which we can benchmark forward. We are also very proud to give an assessment of the regulatory landscape and a magnetic introduction to some of the greatest blockchain minds on the continent,” Greaves noted.

Concluding the launch of The African Blockchain Report, Ian Putter, Head, Blockchain CoE&CA Training Office at Standard Bank Group, the largest African bank by assets, said that Africa is a reminder that life matters and that there is a great need for everyone to work together to enable humanity to be well in all ways.

“The immediacy of existential threats as experienced by Africans requires a different pace. Africa’s difficulties are compounded by the pandemic that has disrupted revenues, foreign direct investment, development assistance, remittances, trade, and tourism, and not forgetting the effects of war. African economies are in danger of even further marginalization due to macro trends towards economic deglobalization,” he said.

The silver lining has been the self-fast-tracking of Africa’s digital and tech economy. This has already bolstered resilience as a road map to how and why the world needs to embrace blockchain as a transformative technology. Standard Bank has been a pioneer in leveraging blockchain to bring speed and transparency to our customer base across Africa. We are very excited to work with CV VC as a blockchain ambassador to enable the further emergence of blockchain, as a resource on which Africa can build and outreach globally,” he added.