African Crypto Startups Venture Funding Grows By Over 1000% In 2022

According to the African Blockchain Report 2021 by Crypto Valley Venture Capital (CV VC) and Standard Bank, crypto businesses in Africa received more venture capital in the first quarter of 2022 than in the first quarter of 2021. Blockchain firms on the continent raised $91 million in the first quarter of 2022, a 1,668% increase over the same time in the previous year.

According to the research, African unicorns could debut in the continent’s crypto industry within two to three years.

The rising interest in the region from venture capital firms predominantly investing finance-related crypto startups may lead to an increase in the number of African crypto unicorns. According to the research, the majority of venture capital funding has gone to fintech startups and cryptocurrency exchanges.

According to Gideon Greaves, CV VC’s managing director for Africa, blockchain is the continent’s most well-funded sector.

“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.”

The executive also stated that the continent’s lack of legacy infrastructure provides an opportunity for blockchain firms. They can close the gaps using new technology. He believes that the region has all it needs to launch large-scale cryptocurrency businesses.

Nigerian startups will receive the most money in 2021, with 18 businesses raising 39.05% of the funds raised across the continent. Seychelles is second with 26.06%, followed by Kenya and South Africa with 15.75 and 14.87%, respectively.

Due to inflation and limited access to financial institutions, crypto usage in Africa has increased in recent years.

According to a research by cryptocurrency exchange KuCoin, 35% of Nigerians aged 18 to 60 had exchanged cryptocurrency in the previous six months. According to the research, 17.36 million people have put roughly half of their money in cryptocurrencies.

While this demonstrates great adoption in Africa’s most populous country, other countries on the continent also exhibit substantial crypto adoption. Kenya is the world leader in peer-to-peer crypto trades, while the Central African Republic has made Bitcoin legal tender.

According to another report, crypto use on the continent increased 1,200% between July 2020 and June 2021, making it the world’s fastest-growing region.

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