- African venture funding experienced remarkable growth in 2022, increasing by 34% to reach $3.14 billion
- Global blockchain industry made history in 2022 by reaching a total of 1,828 deals
- Global funding for blockchain ventures reaching $26.8 billion
Harare- The increasing popularity of blockchain-based startups is turning Africa into a key investment destination, as global funding for blockchain ventures continues to rise. The latest African Blockchain Report by CV VC reveals that African blockchain funding accounted for a record-breaking 15% of all sector-agnostic venture funds raised in the continent, which is more than twice the global average. This highlights the growing interest in blockchain technology in Africa and the potential for innovative solutions to emerge in various industries. As investors continue to recognize the opportunities presented by blockchain in Africa, we can expect to see further growth and development in this space.
Amidst global economic challenges, African venture funding experienced remarkable growth in 2022, increasing by 34% to reach $3.14 billion, while global funding dropped by 35% to $415 billion. Notably, blockchain deals bucked this trend, with global funding for blockchain ventures reaching $26.8 billion, up 4%, and African blockchain deals raising $474 million, up an impressive 429%. This growth far surpassed the growth rate of general African venture funding, with blockchain funding growing over 12.5 times faster on a year-on-year basis. Consequently, Africa's share of global blockchain funding has risen from 0.3% to 1.8%. The Custody & Exchanges category emerged as the highest-funded in Africa, accounting for 52% of all blockchain investments. This data highlights the growing importance of blockchain technology in Africa and the significant opportunities it presents for investors and entrepreneurs alike.
Africa stands out as the only global region to witness a surge in both general venture funding and blockchain-specific funding. The number of African blockchain deals grew by 12%, with a particular interest in infrastructure, personal identification, record-keeping, and access to financial independence. Despite economic and socio-political hurdles, the global blockchain industry made history in 2022 by reaching a total of 1,828 deals, marking an impressive 30% increase from the previous year. Among all global regions, Africa emerged as the most dynamic, with blockchain companies achieving the highest growth rate in funding, as per the report's global assessment. This data underscores the enormous potential of blockchain technology to drive innovation and growth in Africa, particularly in sectors such as finance, agriculture, and health, and highlights the continent's growing importance as a hub for blockchain-based startups and investments.
Africa's future with blockchain technology is highly promising, as it holds the potential to transform various sectors, including finance, agriculture, health, and governance. With its decentralized and transparent nature, blockchain can play a crucial role in tackling issues such as corruption, fraud, and lack of accountability that plague many African countries. Moreover, blockchain-based solutions can boost efficiency, lower costs, and enhance access to financial services for the unbanked population. As more African nations adopt blockchain technology and create a conducive regulatory environment, we can expect to witness further innovation and growth in this field. The future of blockchain in Africa is bright, and it has the potential to fuel economic development and improve the lives of millions of people on the continent.
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