Significant Decline in African Blockchain Investments

In the initial half of 2024, Africa witnessed a dramatic 74% reduction in blockchain venture capital, a sharp contrast to the same timeframe in 2023. On July 16, CV VC, a Swiss blockchain venture capital enterprise, disseminated its contemporary analysis on African venture funding. The report disclosed that Africa garnered a mere $34.7 million in H1 2024, a stark decline from the $135.4 million accumulated in the corresponding period of the previous year.

Despite the financial downturn, CV VC noted a 9% uptick in the quantity of deals consummated within the region.

Part of a Global Downtrend

This regional dip aligns with a broader global contraction in blockchain investments. CV VC’s findings illustrated a precipitous drop in worldwide blockchain funding, plunging from $10.66 billion in the first half of 2023 to a modest $5.74 billion in the same period of 2024—an alarming 64% decrease.

Moreover, the total number of deals fell drastically, with only 678 deals recorded in 2024, compared to 1,306 deals during the equivalent span in 2023, marking a 49% reduction in blockchain venture capital transactions globally.

Read more: The Rise of the Blockchain Unicorn: How Seed Funding Fuels Innovation

Africa’s Relative Performance

Despite these global headwinds, African blockchain ventures demonstrated a notable resilience. The continent’s blockchain funding represented 6.4% of all venture capital, and its deal share stood at 12.5% of regional transactions. This data reflects an unprecedented high in deal share for Africa, suggesting a relatively better performance compared to global blockchain VC activities.

Globally, blockchain investments constituted merely 3.5% of total venture funding and 5.9% of overall deals. CV VC inferred that Africa’s elevated percentage of blockchain activity indicates a heightened regional emphasis on blockchain innovations, propelled by distinctive challenges that the technology aims to address.

Surge in Crypto Startups Amidst Funding Decline

Interestingly, despite the funding shortfall, Africa witnessed a rise in the proportion of crypto startups. On July 10, Alliance, a blockchain startup accelerator and founder community, highlighted that Africa’s share of crypto startups escalated by 5.2%.

In parallel, Europe emerged as the frontrunner for new crypto startups, surpassing both the United States and Canada. Asia secured the third position with a 26.8% share.