Even though there hasn’t been a blockchain mega-deal in Africa yet, the report infers that big crypto companies could emerge from the region soon.
According to a new report by blockchain investment firm Crypto Valley Venture Capital (CV VC) and Standard Bank, as the African region continues to adopt crypto and blockchain, more venture funding flowed into the continent in the first quarter of 2022 compared to the first quarter of 2021.
According to the report, titled “The African Blockchain Report 2021,” blockchain startups were able to raise $91 million in the first quarter of 2022. According to CV VC, this year’s cash inflow increased by 1,668 percent year on year (YoY) compared to the first quarter of 2021’s YoY of 149 percent, a more than 11-fold increase.
Furthermore, while Africa has yet to witness a “blockchain mega-deal,” the report predicts that unicorns will emerge from the region’s crypto and blockchain scene within the t 2-to 3 years as more venture capitalists show interest in the region.
Gideon Greaves, Managing Director for Africa at CV VC, said that blockchain funding in Africa has surpassed all other forms of startup funding. Working in a venture capital firm that focuses on blockchain projects, the executive stated that blockchain allows the region to enter markets more quickly. Greaves stated:
Furthermore, Greaves stated that the region’s lack of legacy infrastructure gives blockchain startups an advantage because of the opportunity to fill the void with fast and innovative technologies.
According to the CV VC executive, Africa has the right tools, motivation, and population to build large companies that serve millions of people. Greaves believes that within the next five years, Africa will be the leading region for “capitalizing on business using blockchain.”
Meanwhile, venture capital firms recently invested $23 million in the launch of MARA, a cryptocurrency exchange platform. The exchange will initially operate in Kenya and Nigeria to provide a simple way to trade cryptocurrency.
According to a report published last month, the lack of financial services infrastructure in Nigeria has increased crypto ownership in the country. According to the study, citizens of the country have begun to use cryptocurrency as an alternative for storing and transferring assets.