Blockchain startups in Africa attracted $135.4 million in venture capital funding in 2023, representing a 72% decline from the previous year [2022].
Overall, the blockchain sector’s share of overall funding received by startups on the continent was just 6.1% of the $2.2 billion raised that year [2023], another decline from 15.1% share in 2022. The continent only accounts for 1.3% of the venture money that found startups in 2023.
On further analysis, the bulk of the funding was raised by blockchain startups in Seychelles and South Africa, representing 95% of the overall amount raised. Remarkably, Seychelles led the investment for the sixth straight year, accounting for over half of the total funding amount raised.
Interestingly, a similar 2022 CV VC Africa report revealed that Seychelles and South Africa had accounted for 81% of all blockchain and crypto startups funding in Africa in 2022.
African Funding for Web3 Startups Increased 5x in 2022 – Seychelles and South Africa Accounted for 81%, Says Latest CV VC Report
$474 million was raised in #Africa across blockchain deals – up 429% with @kucoincom and @Scroll_ZKP becoming unicormshttps://t.co/6SNcbGFiq5
— BitKE (@BitcoinKE) April 22, 2023
According to the 2023 report by CV VC Africa, Seychelles blockchain startups raised $100 million from six deals while South African startups raised $29 million from 4 deals.
Seychelles startups that raised funding in 2023 include:
- Beldex, which raised $3 million
- Crypto exchange Bitget, which raised $10 million, and
- Scroll, which raised $50 million
In South Africa:
- Momint raised $1.25 million, while
- Carry1st secured $27 million
For the rest of the continent, below is a total list of startups that raised in 2023, their country, and deal size:
- Beldex (Seychelles): $3 million
- Scroll (Seychelles): $50 millon
- AlphaBloq (Kenya): $120,000
- Bitget (Seychelles): $10 million
- BoundlessPay (Nigeria): $300,000
- IvoryPay (Nigeria): $135,000
- Kotani Pay (Kenya): $2 million
- Seso Global (Nigeria): $720,000
- Zap Africa (Nigeria): $300,000
- Zone (Nigeria): $8.5 million
- House Africa (Nigeria): $400,000
- Jamit (Nigeria): $235,000
- Momint (South Africa): $1.25 million
- Shamba Records (Kenya): $300,000
- Azuro (Seychelles): $3.5 million
- Canza Finance (Nigeria): $2.3 million
- Elfi (Seychelles): $5 million
- Nftti (South Africa): $6 million
- Quantamm (Seychelles): $1.85 million
- Renq Finance (Seychelles): $2.35 million
- Seedify (Seychelles): $10 million
- Carry1st (South Africa): $27 million
- Cellula (Seychelles): $2 million
- Gamic (Nigeria): $1.8 million
- Giza (Egypt): $3 million
- Halo (Seychelles): $3 million
- Web3 Sanctuary (South Africa): $135,000
Despite the easing of crypto regulations across the continent, crypto is still banned in 12 countries, and 36 more countries have ‘uncertain’ regulatory frameworks, per the CV VC report. The clear regulations in Seychelles and South Africa have led the 2 nations to emerge as Africa’s leading crypto and blockchain funding destinations.
“South Africa and Seychelles are two of the six markets where crypto is legal in Africa and regulatory assuredness is important for investment in [blockchain startups],” noted Brenton Naicker, Principal and Head of Growth at CV VC.
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