African Blockchain Ventures Outpace Global Funding Growth: Report

The African continent continues to be a breeding ground for the growth and implementation of blockchain technology.

In the African Blockchain Report 2022 by Crypto Valley VC, it was stated that blockchain deals in Africa raised $474 million, resulting in a 429% increase in African blockchain venture funding. This growth in funding for African blockchain ventures outpaced the global average, which only saw a 4% increase in blockchain funding.

According to the report, African blockchain financing showed a growth rate that was over 12.5 times higher than overall African venture financing on a year-over-year basis. Specifically, African blockchain ventures raised $474 million through 2022, reflecting a 429% increase in funding. In contrast, overall African venture funding saw a 34% increase, with $3.14 billion raised over 570 deals in the same period.

In 2022, African blockchain startups raised a total of $474 million, reflecting a 429% year-over-year increase compared to the $90 million raised in 2021. Africa experienced the highest growth in funding among all regions. Meanwhile, the US held steady at $15.2 billion in funding, while Asia and Europe saw year-over-year increases of 50% and 35%, respectively, with $4.74 billion and $4.88 billion in funding.

African blockchain funding from nations. Source: CV VC African blockchain report 2022

In the past year, Seychelles and South Africa were responsible for 81% of blockchain funding in Africa, having raised $208 million and $177 million respectively. Also, the number of African blockchain deals increased by 12% from 26 to 29 from the previous year.

African blockchain venture funding accounted for 1.77% of global blockchain venture funding, which saw an impressive 407% year-over-year increase, with several countries contributing to the increase. In comparison, the USA entered into 137 agreements, while Asia and Europe had 84 and 78 respectively.

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Nigeria is currently the front runner when it comes to the number of blockchain startups that have received funding, followed by South Africa, Seychelles and Kenya. However, despite having the highest number of deals on the continent in 2022, Nigeria only accounted for 3.4% of all African blockchain funding, with an average deal size of $1.25 million.

When you consider the significant increase in blockchain finance in Africa and the fact that there was a relatively small increase in the number of blockchain deals, it shows that the median deal size has increased significantly. This suggests that companies are securing more substantial funding and investors are becoming more confident in African blockchain ventures.

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