Blockchain venture funding in Africa decreased by 74% in the first half of 2024 compared to the same period in 2023.
On July 16, Swiss blockchain venture capital firm CV VC released its latest report on African venture funding. Within the report, CV VC highlighted that Africa secured $34.7 million in H1 2024. Compared to 2023, when funding reached $135.4 million, the number marks a 74% year-on-year decline in the amount raised.
While Africa experienced a downturn in funding, CV VC reported a 9% increase in the number of deals made in the region.
Part of a broader funding decline
Overall, blockchain funding worldwide also experienced a significant drop. CV VC reported that the space saw $10.66 billion in funding in the first half of 2023. However, it raised only $5.74 billion in the same period in 2024, representing a 64% drop year-on-year.
In terms of deals, 2024 also recorded only 678 deals. Compared to the same period in 2023, which had 1,306 deals, this shows a 49% decrease in blockchain venture capital deals made worldwide.
According to the report, African blockchain venture funding also accounted for 6.4% of all venture funding and 12.5% of regional deals. According to CV VC, the data shows an all-time high in deal share. This shows promise, as the data shows that Africa performed better than its global blockchain VC counterpart.
Globally, blockchain funding only represented 3.5% of all venture funding and 5.9% of total deals. CV VC noted that the higher percentage of blockchain venture activity in Africa “suggests a greater regional focus on blockchain solutions, driven by unique challenges that this technology can address."
Related: Internet Computer Protocol promotes blockchain engagement in Africa
Africa sees a rise in crypto startups
Despite the decline in venture funding, the region still saw an increase in its share of crypto startups. On July 10, blockchain startup accelerator and founder community Alliance highlighted that Africa saw a 5.2% increase in its share of crypto startups.
Apart from Africa, Europe was the leading place for new crypto startups, overtaking the United States and Canada. Meanwhile, Asia came in third place with a 26.8% share.
Magazine: South Africa’s digital-nomad crypto hub: Cape Town, Crypto City Guide