11x in 2022 – What you should know about Africa’s crypto startup culture

ambcrypto.com:

Crypto-businesses in Africa received more venture capital in the first quarter of 2022 than in the first quarter of 2021. This, according to the African Blockchain Report 2021 by Crypto Valley Venture Capital (CV VC) and Standard Bank.

In comparison to the same period in 2021, blockchain firms on the continent raised $91 million in the first quarter of 2022, a 1,668% increase in cash inflows. While no “blockchain mega-deal” is yet to be announced in Africa, the report anticipates that crypto-unicorns will emerge within the next two to three years.

Nigerian companies account for most funding in 2021, accounting for 39.05% of all funds obtained on the continent. Seychelles is second with 26.06%, followed by Kenya and South Africa with 15.75 and 14.87%, respectively.

Crypto-adoption in Africa has surged in recent years as a result of inflation and limited access to financial institutions. According to a study conducted by cryptocurrency exchange KuCoin, 35% of Nigerians aged 18 to 60 had traded cryptocurrencies in the preceding six months. According to the study, 17.36 million people have invested roughly half of their savings in cryptocurrencies.

While the most populous African country has a high level of crypto-acceptance, so do other African countries. The Central African Republic has made Bitcoin legal tender, and Kenya leads the world in peer-to-peer cryptocurrency trading.

According to another study, crypto-usage on the continent increased by 1,200% from July 2020 to June 2021, making it the world’s fastest-growing region.

The rising interest in the region from venture capital firms predominantly investing in finance-related crypto-startups could lead to an influx of African crypto-unicorns. The majority of venture capital