VC funding for African crypto startups to grow 11-fold by 2022, report says

A new report from blockchain investment firm Crypto Valley Venture Capital (CV VC) and Standard Bank South Africa shows that as the African region continues to adopt cryptocurrencies and blockchain, it will be the first quarter of 2022 compared to the first quarter of 2021. More venture capital flowed into the continent in the quarter.

The report, titled Blockchain Africa Report 2021, revealed that blockchain startups raised $91 million in the first quarter of 2022. According to CV VC data, compared with the first quarter of 2021, this year's cash inflow has increased by 1,668% year-on-year, and it has increased by more than 11 times compared with 149% in 2021.

Additionally, the report highlights that while Africa has yet to see a “blockchain super deal,” it is expected that within 2-3 years, as more and more venture capital interest in Africa continues to rise, the region’s cryptocurrencies and regional Unicorn companies may appear in the blockchain field.

African Countries That Have Raised The Most Funding In 2021 Source: Blockchain Africa Report

Gideon Greaves, general manager of CV VC in charge of Africa, told Cointelegraph that blockchain financing in Africa exceeds other forms of startup financing, and the African region has the opportunity to enter the market faster through blockchain. Greaves said:

“We see this development as a key enabler for African businesses, bringing them to market quickly by using blockchain as a catalyst to build new businesses.”

Additionally, Greaves said Africa’s lack of traditional infrastructure offers blockchain startups an advantage as they have the opportunity to fill this gap with fast and innovative technology.

He also said that Africa has the right tools, motivation and enough people to create big companies and serve millions of people. Greaves predicts that within the next five years, the African continent will become the leading region in “using blockchain for commercial profitability.”

Meanwhile, the venture capital firm recently invested $23 million to launch a cryptocurrency trading platform called MARA. The exchange will initially operate in Kenya and Nigeria, offering an easy way to trade cryptocurrencies.

Last month, a report also revealed that the lack of financial services infrastructure in Nigeria has contributed to the growth of cryptocurrency ownership in the country. The study also highlights that Nigerian citizens are starting to use cryptocurrencies as an alternative option to store and transfer assets.