Africa's Blockchain Funding Drops to 1.3% in 2023, Deal Share Rises - Report

In 2023, Africa’s share of global blockchain venture deals rose marginally to 1.3%, but the continent’s total funding dropped from 1.6% to 1.3%. Only South America’s share of blockchain funding ranks below Africa’s share. The continent achieved an all-time high in blockchain venture funding deal share, accounting for 6.4% of all venture funding and 12.5% of total deals.

Africa’s 2024 Blockchain Funding off to a Slow Start

According to the CV VC report, Africa’s share of global blockchain venture deals (1,306) rose from 1.2% to 1.3% by the end of 2023. However, the continent’s share of total blockchain venture funding ($10.66 billion) dropped from 1.6% in 2022 to 1.3%. The report reveals that Africa secured just $135.4 million from 17 blockchain deals, representing a 45% decrease in deals and a 72% decrease in funding compared to the previous year.

With these funding levels, Africa’s 2023 blockchain funding ranks among the lowest across all continents. Only South America had a lower share of total funding at 0.6%. However, by the end of the first half of 2024, the difference between Africa and South America’s respective shares narrowed to a tenth of a percent.

The report’s data indicates a significant slowdown in Africa’s blockchain funding activity during the first half of this year.

“In Q1 2023, the bulk of African blockchain venture activity occurred, with the quarter attracting 78% of the year’s total funding across 59% of all the deals. In comparison to the same quarter of the previous year, only the first quarter saw an increase in the amount of funding,” the report stated.

Africa’s Average Blockchain Venture Deal Size Falls to $2 Million

Meanwhile, the report revealed that Africa’s number of blockchain unicorns grew to three after Scroll joined Kucoin and Bitget as the continent’s giants. In the past year, Africa’s annual median deal size for blockchain venture funding, which has consistently been lower than the global median, dropped to $2 million. This amount is 39% lower than Africa’s 2022 median and 29% lower than the global median for blockchain deal size in 2023.

Nevertheless, Africa’s blockchain venture funding activity still represents a larger share of the region’s total venture funding and deal count. According to the report, the continent’s blockchain venture funding achieved an all-time high in deal share, accounting for 6.4% of all venture funding and 12.5% of total deals.

“This 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,” the report concluded.