In 2023, Africa’s share of worldwide blockchain enterprise offers rose marginally to 1.3%, however the continent’s complete funding dropped from 1.6% to 1.3%. Solely South America’s share of blockchain funding ranks under Africa’s share. The continent achieved an all-time excessive in blockchain enterprise funding deal share, accounting for six.4% of all enterprise funding and 12.5% of complete offers.
Africa’s 2024 Blockchain Funding off to a Sluggish Begin
In accordance with the CV VC report, Africa’s share of worldwide blockchain enterprise offers (1,306) rose from 1.2% to 1.3% by the tip of 2023. Nonetheless, the continent’s share of complete blockchain enterprise funding ($10.66 billion) dropped from 1.6% in 2022 to 1.3%. The report reveals that Africa secured simply $135.4 million from 17 blockchain offers, representing a forty five% lower in offers and a 72% lower in funding in comparison with the earlier yr.
With these funding ranges, Africa’s 2023 blockchain funding ranks among the many lowest throughout all continents. Solely South America had a decrease share of complete funding at 0.6%. Nonetheless, by the tip of the primary half of 2024, the distinction between Africa and South America’s respective shares narrowed to a tenth of a %.
The report’s knowledge signifies a major slowdown in Africa’s blockchain funding exercise in the course of the first half of this yr.
“In Q1 2023, the majority of African blockchain enterprise exercise occurred, with the quarter attracting 78% of the yr’s complete funding throughout 59% of all of the offers. Compared to the identical quarter of the earlier yr, solely the primary quarter noticed a rise within the quantity of funding,” the report acknowledged.
Africa’s Common Blockchain Enterprise Deal Measurement Falls to $2 Million
In the meantime, the report revealed that Africa’s variety of blockchain unicorns grew to a few after Scroll joined Kucoin and Bitget because the continent’s giants. Previously yr, Africa’s annual median deal measurement for blockchain enterprise funding, which has constantly been decrease than the worldwide median, dropped to $2 million. This quantity is 39% decrease than Africa’s 2022 median and 29% decrease than the worldwide median for blockchain deal measurement in 2023.
Nonetheless, Africa’s blockchain enterprise funding exercise nonetheless represents a bigger share of the area’s complete enterprise funding and deal rely. In accordance with the report, the continent’s blockchain enterprise funding achieved an all-time excessive in deal share, accounting for six.4% of all enterprise funding and 12.5% of complete offers.
“This increased share of blockchain enterprise exercise in Africa suggests a larger regional deal with blockchain options, pushed by distinctive challenges that this know-how can handle,” the report concluded.
