In 2021, the African blockchain and cryptocurrency space raised $127 million, a small representation of the 0.5% share of the total global blockchain. 2022 has seen 17 startups in this space raise $213.3 million in funding, a 47.2% increase from the previous year.
Q1 of 2022 saw $91 million raised, indicating a 1,668% YoY increase from Q1 of 2021 with $5.1 million. This saw the fundraising in this space hit the $200 million mark in 2022.
Despite the drop-down in crypto asset prices, blockchain companies still remain resilient in obtaining VC investments.
There is no mega-deal yet in the African crypto and blockchain ecosystem, however South African exchange, Valr secured a $50 million Series B round, the highest on the continent.
The funding in this space is quite insignificant compared to other regions of the globe, nevertheless, they are making giant strides. 2021 saw eight African countries secure funding in the blockchain space, however, 2022 produced seven.
Which blockchain industries raised the most funding in 2022
Exchanges
- Bitmama (Nigeria) – $1.65M
- Ejara (Cameroon) – $8M
- AfriEx (Nigeria) – $10M
- Valr (South Africa) – $50M
- Mara (Nigeria/Kenya) – $23M
- Yellow Card (South Africa) – $40M
Gaming
NFT
- Hashgreed (Nigeria) – $1M
- Ayoken (Nigeria) – $1.4M
Investment
Mining
Fintech
Verification
- Flexid (Zimbabwe) – Undisclosed
DeFi
Software development
The African blockchain space still has a lot to explore, with a lot of untapped potential for the continent’s young talent. Despite regulatory challenges, some of these companies continue to take giant strides in providing blockchain-related solutions.
2022 saw more exchanges raise the most funding, and this indicates that crypto is still the most sought-after use case of blockchain technology. Crypto exchanges may have also received more funding because they offer more financial inclusion, which isn’t flexible with many traditional banks on the continent.
Nevertheless, 2022 has shown that the use case of blockchain is more than cryptocurrencies as there are other tradable digital assets.
The continent of Africa has demonstrated its ability to integrate blockchain technologies into its many sectors. Going into 2023, global investors should look more into the African blockchain talent.
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