Africa is the only region globally to have experienced an explosion in blockchain venture funding in 2022
Image: pixabay.com
CV VC’s second African Blockchain Report 2022 illustrates the transformational impact blockchain has had on the welfare of nations and individuals across the continent and the development of its financial technologies.
Africa has taken a unique position on the global VC stage. Last year, it became the only region where venture funding grew. Whereas the whole world saw funding fall 35% to $415B, VC investors in Africa increased their funding by 34% to reach $3.14B.
Meanwhile, blockchain-specific funding has experienced an enormous surge. Last year, it achieved a 15% share of all venture funds in Africa. Compared to the global blockchain funding growth of 4%, the results shown by African VCs are impressive – the continent’s blockchain venture funding increased by 429% in 2022. The total value of funding deals was $474M.
Moreover, 2022 brought Africa the first two blockchain unicorns – Kucoin and Scroll.io.
Source: cvvc.com
Given the significant growth, Africa increased its share of all global blockchain funding, up from 0.3% to 1.8%. Overall, Blockchain venture funding is on the rise globally, contributing to 6.5% of all VC funding.
The number of blockchain deals also grew by 12%, reflecting the vibrant growth of the African blockchain sector. Not only does it show the increasing maturity of regional startups dealing with the digital assets and distributed ledgers, but also it is an important indicator of the value of blockchain and crypto for the financial inclusion.
The report, published in association with Standard Bank, shows that blockchain technology impacts Africa in an unprecedented way. Due to the lack of proper legacy banking and other infrastructure systems, blockchain here has a real-life utility in social impact, proptech, tokenization and NFTs, energy, government, and education.
