African blockchain venture funding drops 74% in H1 2024: CV Labs
Blockchain venture funding in Africa dropped by 74% in the first half of 2024 compared to the same period in 2023.
On July 16, Swiss blockchain venture capitalist CVVC released its latest report on African venture funding. In the report, CV highlighted that VC Africa earned $34.7 million in H1 2024. Compared to 2023, when funding reached $135.4 million, the number represents a 74 percent year-over-year decrease in funds raised.
As Africa's funding continues to decline, CVVC reports a 9 percent increase in the number of deals done in the region.
Part of a wider budget reduction
Overall, blockchain funding around the world has declined significantly. CVV reported that the space raised $10.66 billion in funding in the first half of 2023, but only raised $5.74 billion in the same period in 2024, a 64 percent year-over-year decline.
In terms of deals, 2024 also recorded only 678 deals. In the year Compared to the same period in 2023, which contained 1,306 deals, this represents a 49 percent decrease in blockchain venture capital deals globally.
According to the report, African blockchain venture funds account for 6.4% of all venture funds and 12.5% of regional deals. According to CV VC, the data show a high proportion of agreement. This shows promise, as the data shows that Africa has fared better than its global blockchain VC counterparts.
Globally, blockchain funding represents only 3.5% of all venture funding and 5.9% of total deals. CVV said Africa's top blockchain venture activity “suggests a greater regional focus on blockchain solutions, driven by the unique challenges this technology can solve.”
Related: Internet Computing Protocol Promotes Blockchain Participation in Africa
Africa will see growth in crypto startups.
Despite the decrease in venture funding, the region still has an increasing share of crypto startups. On July 10, blockchain startup accelerator and founding community Alliance Africa highlighted a 5.2% increase in crypto startups.
In addition to Africa, Europe was the top destination for new crypto startups, ahead of the US and Canada. Meanwhile, Asia ranks third with a 26.8 percent share.
Magazine: Digital-Nomads Crypto Hub in South Africa: Cape Town, Crypto City Guide
