Africa’s 2024 Blockchain Funding off to a Tepid Start

According to the latest CV VC report, Africa’s portion of global blockchain venture transactions (1,306) incrementally increased from 1.2% to 1.3% by the close of 2023. Conversely, the continent’s share of overall blockchain venture capital ($10.66 billion) diminished from 1.6% in 2022 to 1.3%. The report divulges that Africa garnered a mere $135.4 million from 17 blockchain deals, marking a 45% reduction in transactions and a staggering 72% decline in funding compared to the previous annum.

At these funding strata, Africa’s 2023 blockchain investment ranks among the lowest worldwide. Only South America recorded a lesser share of total funding at 0.6%. However, by the conclusion of the initial half of 2024, the disparity between Africa and South America’s respective shares narrowed to a mere tenth of a percent.

The report’s data underscores a pronounced deceleration in Africa’s blockchain funding endeavors during the first semester of this year.

“In Q1 2023, the majority of African blockchain venture activities transpired, with the quarter amassing 78% of the year’s aggregate funding across 59% of all transactions. In comparison to the equivalent quarter of the preceding year, solely the first quarter witnessed an augmentation in the volume of funding,” the report articulated.

Africa’s Average Blockchain Venture Deal Size Contracts to $2 Million

Concurrently, the report illuminated that Africa’s tally of blockchain unicorns ascended to three following Scroll’s inclusion alongside Kucoin and Bitget as the continent’s behemoths. Over the past year, Africa’s annual median deal size for blockchain venture capital, which has persistently trailed the global median, dwindled to $2 million. This figure is 39% lower than Africa’s 2022 median and 29% below the global median for blockchain deal sizes in 2023.

Nevertheless, Africa’s blockchain venture capital activities still constitute a significant portion of the region’s total venture funding and transaction count. According to the report, the continent’s blockchain venture funding achieved an unprecedented high in deal share, constituting 6.4% of all venture capital and 12.5% of total transactions.