Blockchain venture funding in Africa plummeted by 74% in the first half of 2024 compared to the same period in 2023. According to a report by Swiss blockchain venture capital firm CV VC released on July 16, Africa secured $34.7 million in funding in H1 2024, sharply down from $135.4 million in 2023. Despite the funding decline, CV VC noted a 9% increase in the number of deals made in the region.
Part of a broader decline in funding
Overall, global blockchain funding saw a substantial decline. CV VC reported $10.66 billion in funding for the first half of 2023, which fell to $5.74 billion for the same period in 2024, marking a 64% year-on-year drop.
In terms of deals, 2024 saw only 678 transactions. Compared to the same period in 2023, which recorded 1,306 deals, this marks a 49% decrease in global blockchain venture capital transactions.
According to the report, African blockchain venture funding constituted 6.4% of total venture funding and 12.5% of regional deals, marking an all-time high in deal share. This suggests promising growth compared to global blockchain VC counterparts, where blockchain funding accounted for only 3.5% of all venture funding and 5.9% of total deals. CV VC highlighted Africa’s higher percentage of blockchain venture activity, indicating a strong regional focus on blockchain solutions tailored to address unique challenges.
Africa experiences a surge in cryptocurrency startups
Despite the downturn in venture funding, Africa saw a rise in its proportion of crypto startups. According to Alliance, Africa’s share of crypto startups increased by 5.2% as of July 10. In contrast, Europe emerged as the top region for new crypto startups, surpassing North America, while Asia ranked third with a 26.8% share.
