Home News Venture funding for African crypto startups grew 11x in 2022

Venture funding for African crypto startups grew 11x in 2022

1808
0
Venture

According to a new analysis by blockchain-investment firm Crypto Valley Venture Capital (CV VC) and Standard Bank, more venture money poured into Africa in the first quarter of 2022 than in the first quarter of 2021, as the continent continues to embrace crypto and blockchain.

According to “The African Blockchain Report 2021,” blockchain businesses were able to raise $91 million in the first quarter of 2022. According to CV VC, this year’s first quarter saw a 1,668% year-on-year (YoY) growth in cash inflow, compared to 149% in 2021.

In addition, while Africa has yet to see a “blockchain mega-deal,” the report forecasts that unicorns will emerge from the continent’s crypto and blockchain sector within the next 2to 3 years as more venture capitalists show interest in the region.

The Central African Republic reportedly passes a bill to regulate crypto use

African countries that raised the most capital in 2021. Source: African Blockchain Report

Gideon Greaves, the Managing Director of CV VC for Africa, indicated that blockchain finance has exceeded conventional kinds of startup funding in Africa. Working for a venture capital firm that specialises in blockchain initiatives, the executive stated that blockchain allows the region to enter markets more quickly. According to Greaves:

“We see this as a critical enabler for African firms, allowing them to gain speedy access to markets by leveraging blockchain as a catalyst to launch new ventures.”

Furthermore, according to Greaves, the region’s lack of legacy infrastructure gives blockchain entrepreneurs an advantage because they can replace the hole with quick and innovative technology.

The African continent will be the main place for venture funding

According to the CV VC executive, Africa has the proper tools, drive, and population to build enormous businesses that will serve millions of people. Within the next five years, Greaves believes the African continent will be the main place for “capitalising on business using blockchain.”

Meanwhile, venture capital firms have just invested $23 million in the development of MARA, a cryptocurrency exchange platform. To provide an easy way to trade cryptocurrency, the exchange will first begin operations in Kenya and Nigeria.

A survey published last month found that the country’s lack of financial services infrastructure promoted cryptocurrency ownership. According to the report, inhabitants of the country have begun to use cryptocurrency as a means of holding and transferring assets.

Previous articleCommonwealth Bank puts crypto trading trial on ice as regulators dither
Next articleBeeple account got hacked and targeted phishing scam nets $438K in crypto and NFTs from the hack