Venture Funding for African Crypto Startups to Grow 11x in 2022: Report

According to a new report from blockchain investment firm Crypto Valley Venture Capital (CV VC) and Standard, more venture capital will rise in Q1 2022 compared to Q1 2021 as Africa continues to adopt cryptocurrencies and blockchains brought to the continent. Bank.

The report titled “Africa Blockchain Report 2021” show The blockchain startup was able to raise $91 million in Q1 2022. Compared to the first quarter of 2021, cash inflow this year increased by 1,668% to 149%, an 11-fold increase according to CV VC.

The report also highlighted that while Africa has not yet seen a “blockchain mega deal”, it predicts that unicorns will emerge from the crypto and blockchain scene in the region within 2-3 years as more venture capitalists show interest in the region. .

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

Gideon Greaves, managing director of CV VC Africa, told Cointelegraph that blockchain funding in Africa has outperformed other forms of startup funding. While working at a venture capital firm that focuses on investing in blockchain projects, executives noted that the region has opportunities to enter the market faster with blockchain. Greaves said:

“We see this development as a key enabler for African companies, and by building new businesses using blockchain as a catalyst, they can get to market quickly.”

Greaves also said that the lack of legacy infrastructure in the region gives blockchain startups an advantage because there is an opportunity to fill the void with fast and innovative technology.

According to CV VC executives, Africa has the right tools, motivation and population to create large enterprises that will serve millions of people. Greaves predicts that the continent of Africa will be a leading region for “capitalizing businesses using blockchain” within the next five years.

Relevant: From smart insurance to on-chain document validation: Here’s how NEAR aims to improve Kenya.

Meanwhile, the venture capital firm recently invested $23 million to launch a cryptocurrency exchange platform called MARA. The exchange will initially start operating within Kenya and Nigeria, providing a simple way to trade cryptocurrencies.

Last month’s report showed that Nigeria’s lack of financial services infrastructure has led to increased ownership of cryptocurrencies in Nigeria. The study also highlighted that citizens of the country are starting to use cryptocurrencies as an alternative to storing and transferring their assets.

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