African Blockchain Startups investment to reach $200 million in 2022
In 2021, the African blockchain and cryptocurrency space raised $127 million, a small representation of 0.5% share of the total global blockchain. By 2022, 17 startups in this area have raised $213.3 million in funding, a 47.2% increase from the previous year.
Q1 of 2022 collected $91 million, indicating a 1,668% year-over-year increase from Q1 2021 of $5.1 million. This led to fundraising in this area reaching $200 million by 2022.
Despite the decline in crypto-asset prices, blockchain companies remain resilient when it comes to raising VC investment.
There is no mega deal yet in the African crypto and blockchain ecosystem, but South African exchange Valr secured a $50 million Series B round, the highest on the continent.
The funding in this area is quite insignificant compared to other regions of the globe, but they are making great progress. In 2021, eight African countries secured funding in the blockchain space, but 2022 produced seven.
Which blockchain industries raised the most funding in 2022
Exchanges
- Bitmama (Nigeria) – $1.65 million
- Ejara (Cameroon) – $8 million
- AfriEx (Nigeria) – $10 million
- Valr (South Africa) – $50 million
- Mara (Nigeria/Kenya) – $23 million
- Yellow Card (South Africa) – $40 million
Gaming
NFT
- Hashgreed (Nigeria) – $1 million
- Ayoken (Nigeria) – $1.4 million
Investment
Mining
Fintech
Confirmation
- Flexid (Zimbabwe) – Not disclosed
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 make giant strides in offering blockchain-related solutions.
In 2022, several exchanges raised the most funding, indicating that crypto remains the most sought-after use of blockchain technology. Crypto exchanges may also have received more funding because they offer more financial inclusion, which is not flexible with many traditional banks on the continent.
Nevertheless, 2022 has shown that the use of blockchain is more than cryptocurrencies, as there are other tradable digital assets.
The African continent has demonstrated its ability to integrate blockchain technologies into its many sectors. As we enter 2023, global investors should look more closely at African blockchain talent.
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