African Blockchain funding took a nosedive in 2024. The first half of the year saw a 74% drop compared to 2023.
However, there’s a silver lining. The number of deals in Africa actually increased by 9%.
This mixed picture shows a changing landscape for blockchain in Africa.
African Blockchain Funding: A Closer Look
Source: CV VC
According to recent data, Africa secured $34.7 million in blockchain funding in the first half of 2024.
This is a big drop from the $135.4 million raised in the same period last year.
However, the number of deals went up. This suggests investors are still interested but are being more cautious with their money.
Africa’s share of global blockchain deals hit an all-time high. It accounted for 12.5% of all blockchain deals worldwide.
This record is impressive, considering the global downturn in blockchain funding.
Globally, blockchain funding fell by 64% in the same period.
Experts say this shows Africa’s unique potential for blockchain solutions.
Moreover, the continent faces challenges that blockchain technology might help solve.
This could explain why deal activity remains robust despite less money being invested.
Rising Startup Activity
While funding decreased, Africa saw a rise in crypto startups. The continent’s share of new crypto startups grew by 5.2%.
Meanwhile, this growth happened even as other regions saw declines.
Notably, only Europe saw stronger growth in new crypto startups.
This increase in startup activity is encouraging. It shows that entrepreneurs in Africa still see opportunities in blockchain.
Consequently, they’re starting new ventures despite the challenging funding environment.
In addition, the growth in startups could lead to more innovation in the African blockchain space.
Over time, this might attract more funding to the continent.
It’s a sign that the blockchain ecosystem in Africa is evolving, not shrinking.
What This Means for Africa’s Blockchain Future
The current situation reflects both challenges and opportunities for Africa.
Less funding means startups might need to be more creative and efficient.
However, the increase in deals and startups shows there’s still strong interest in blockchain solutions.
Additionally, Africa’s unique challenges could drive blockchain adoption.
For instance, the technology might help with issues like financial inclusion and cross-border payments. This could make Africa a leader in practical blockchain applications.
If everything goes well, it could attract more investors back to the African blockchain scene.