VC funding for African crypto startups grew 11x in 2022: Report
Africa is yet to grab a 'blockchain mega-deal', but more VC funding continues to flow in Africa in 2022
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As the crypto and blockchain adoption rate continues to rise in Africa, more funds have flowed into in Q1 of 2022 than in Q1 of 2021, a new report by Crypto Valley Venture Capital (CV VC) and Standard Bank revealed.
The report titled ‘The African Blockchain Report 2021’, stated that venture capital funding grew 11x from 2021. Blockchain startups raised a total of $91 million in Q1 of 2022. This marks a 1668 percent year-on-year increase in terms of cash flow compared to the growth of 149 percent recorded in Q1 of 2021. Africa is attracting a lot of funding in 2022, though it is yet to see a ‘blockchain mega-deal’.
The report also predicted that Africa might soon become the home to many blockchain and crypto-based unicorns within the next two to three years. In 2021, Nigeria topped the list of attractive funding destinations for VCs, followed by Seychelles, Kenya, and South Africa.
CV VC’s Managing Director for Africa, Gideon Greaves, who works in a venture capital firm that focuses on investing in blockchain startups, says that blockchain funding is much higher than other forms of startup funding in Africa. Greaves also believes that the African region could enter other markets faster via blockchain adoption.
“We see this development as a key enabler for African enterprises, giving them rapid entry to markets by using blockchain as the catalyst to build new businesses,” Greaves noted. He also said that the African region lacks legacy infrastructure, giving blockchain startups a greater advantage. These startups can deploy innovative technologies like blockchain to fill in the infrastructural gap.
