Africa Will Have Its First Crypto Unicorn In Next 2-3 Years, VC Firm Estimates

Africa has all the conditions ripe for the emergence of the first cryptocurrency unicorn from the continent in two to three years, according to a report by Crypto Valley Venture Capital (CV VC) and Standard Bank.

The report titled 'African Blockchain Report 2021' stated, "Africa does not yet boast any cryptocurrency unicorns, although we expect to see these begin to emerge within the next 2 to 3 years."

While the number of unicorns, startups valued over $1 billion, has more than doubled to 959 in 2021 worldwide, blockchain unicorns rose from 7 to 47.

The report further noted that Africa, while representing less than 0.5% of global blockchain funding, exhibited a dramatic 1,668% increase in funding in Q1 2022 compared to Q1 2021.

Further, venture funding for African blockchain startups outpaced the growth seen in general African venture funding - 1,668% vs. 149% - showing 11 times the level of growth on a year-on-year basis.

Africa has seen tremendous growth in blockchain technology in recent years. It should also be noted that the Central African Republic recently became only the second country to adopt bitcoin as legal tender after El Salvador.

"We are humbled and honored to work with many of Africa’s leading tech and blockchain ambassadors. Resultantly, together we have opened CV VC Africa. We have already invested in twelve African startups. We feel that there is an urgent need for governments across Africa to embrace blockchain technology and develop regulatory frameworks to regulate crypto and linked emerging industries," said Mathias Ruch, Founder & CEO, CV VC and Gideon Greaves, MD, CV VC Africa in a combined note.