African startups operating in the crypto industry attracted $474 million in venture funding in 2022. The amount is up 429% compared to 2021, according to a recent report published by Swizerland-based venture capital firm, Crypto Valley Venture Capital (CV VC) and South African banking group Standard Bank.

Entitled “The African Blockchain Report 2022,” the report reveals that in Africa, blockchain-related venture capital investments have grown much more strongly than the global average of 4% despite the turmoil that hit the crypto market last year. 

According to the report, this is the highest year-on-year growth globally, with KuCoin and Scroll hitting the coveted unicorn status. KuCoin, the global exchange headquartered in Seychelles, raised $150 million last May at a $10 billion valuation. Scroll, also based in Seychelles, hit the unicorn level this year after raising $50 million at a $1.8 billion valuation. 

The report also revealed that African blockchain ventures recorded 29 funding deals across 2022, a 12% year-on-year rise from 2021. Nigeria led in the number of deals, followed by South Africa, Seychelles, and Kenya. Venture deals dominated the funding at 91%, with custody and exchanges accounting for 52%. Fintech and infrastructure trailed at 24% and 15%.

According to CoinGeek, globally, blockchain companies raised $27 billion across 1,822 deals in 2022, a new all-time high. This was despite a market downturn caused by the collapse of some of the industry’s biggest projects, from Terra and Celsius Network to Core Scientific and FTX. A total of 22 new blockchain unicorns were born last year, taking the total number to 79.
While blockchain funding in Africa hit record highs in 2022, the year also saw several leading startups collapse or be forced into a quick sale due to a lack of funding. The most recent casualty was Lazerpay, a Nigerian stablecoin payments company that announced a week ago that it was shutting down.