In 2021, Africa’s share of global blockchain transactions marginally increased to 1.3%, but the continent’s total funding dropped from 1.6% to 1.3%. Only South America ranks below Africa in blockchain funding participation. The continent reached a historical peak in blockchain funding deal share, accounting for 6.4% of all venture funding and 12.5% of all deals.
Blockchain Funding in Africa Starts Slowly for 2024
According to the CV VC report, Africa’s share of global blockchain transactions (1,306) increased from 1.2% to 1.3% by the end of 2023. However, the continent’s share of total blockchain funding ($10.66 billion) fell from 1.6% in 2022 to 1.3%.
The report reveals that Africa secured only $135.4 million from 17 blockchain deals, representing a 45% decrease in deals and a 72% drop in funding compared to the previous year.
With these funding levels, Africa’s blockchain funding in 2023 ranks among the lowest of all continents.
Only South America had a lower total funding share at 0.6%. However, by the end of the first half of 2024, the difference between Africa and South America’s funding shares had narrowed to a tenth of a percentage point.
The report indicates a significant slowdown in Africa’s blockchain funding activity during the first half of this year.
“In the first quarter of 2023, most of Africa’s blockchain investment activity occurred, with the quarter attracting 78% of the year’s total funding through 59% of all deals. Compared to the same quarter the previous year, only the first quarter saw an increase in funding amount,” the report stated.
Average Blockchain Deal Size in Africa Drops to $2 Million
Meanwhile, the report revealed that the number of blockchain unicorns in Africa grew to three after Scroll joined Kucoin and Bitget as the continent’s giants. Over the past year, the average annual size of blockchain funding deals in Africa, which has always been below the global average, dropped to $2 million. This amount is 39% lower than Africa’s average in 2022 and 29% below the global average for blockchain deal sizes in 2023.
Despite this, Africa’s blockchain funding activity still represents a significant share of the region’s total venture funding and deal count. According to the report, Africa’s blockchain venture funding reached a historic high in deal share, accounting for 6.4% of all venture funding and 12.5% of all deals.
“This higher percentage of blockchain venture activity in Africa suggests a regional focus on blockchain solutions, driven by unique challenges that this technology can address,” the report concluded.