In 2023, venture capital funding for blockchain firms in Africa was $135.4 million, a 72% decrease from the previous year [2022]. Ultimately, just 6.1% of the $2.2 billion raised that year [2023] went to businesses on the continent in the blockchain space; this is a further fall from 15.1% of the total in 2022. In 2023, 1.3% of venture capital funds that found businesses were on the continent.

After more investigation, it was discovered that blockchain businesses in South Africa and the Seychelles had raised 95% of the total funds. Surprisingly, Seychelles led the investment for six years running, raising more than half of the total amount of money.

Remarkably, a comparable 2022 CV VC Africa analysis found that 81% of all blockchain and cryptocurrency startup funding in Africa in 2022 went to South Africa and the Seychelles.

In contrast to South African firms, which received $29 million from four agreements, Seychelles blockchain startups raised $100 million from six deals, according to the 2023 report published by CV VC Africa. The following Seychelles startups raised capital in 2023:

• Beldex, which raised $3 million
• Crypto exchange Bitget, which raised $10 million, and
• Scroll, which raised $50 million

Within South Africa:

• Momint raised $1.25 million, while
• Carry1st secured $27 million

Below is a list of all the startups that raised capital in 2023 for the remainder of the continent, along with information about their country and deal size:

• Beldex (Seychelles): $3 million
• Scroll (Seychelles): $50 millon
• AlphaBloq (Kenya): $120,000
• Bitget (Seychelles): $10 million
• BoundlessPay (Nigeria): $300,000
• IvoryPay (Nigeria): $135,000
• Kotani Pay (Kenya): $2 million
• Seso Global (Nigeria): $720,000
• Zap Africa (Nigeria): $300,000
• Zone (Nigeria): $8.5 million
• House Africa (Nigeria): $400,000
• Jamit (Nigeria): $235,000
• Momint (South Africa): $1.25 million
• Shamba Records (Kenya): $300,000
• Azuro (Seychelles): $3.5 million
• Canza Finance (Nigeria): $2.3 million
• Elfi (Seychelles): $5 million
• Nftti (South Africa): $6 million
• Quantamm (Seychelles): $1.85 million
• Renq Finance (Seychelles): $2.35 million
• Seedify (Seychelles): $10 million
• Carry1st (South Africa): $27 million
• Cellula (Seychelles): $2 million
• Gamic (Nigeria): $1.8 million
• Giza (Egypt): $3 million
• Halo (Seychelles): $3 million
• Web3 Sanctuary (South Africa): $135,000

According to the CV VC research, despite the continent-wide loosening of legislation pertaining to cryptocurrencies, 12 nations continue to forbid the industry, and 36 more have “uncertain” regulatory frameworks. Due to their well-defined legal frameworks, South Africa and the Seychelles have become the continent’s top locations for blockchain and cryptocurrency investment.

“Regulatory assurance is important for investment in [blockchain startups], and South Africa and Seychelles are two of the six markets where crypto is legal in Africa,” said Brenton Naicker, Principal and Head of Growth at CV VC.