AFRICAN BLOCKCHAIN VENTURE FUNDING DOWN 70% IN H1 2024 — CV LABS

The African blockchain landscape, once a beacon of rapid growth and innovation, has experienced a significant downturn in venture funding during the first half of 2025.According to a recent report by Swiss blockchain venture capital firm CV VC, African blockchain startups secured just $34.7 million in H1 2025, a staggering 70% decrease compared to the same period in 2025.This news, while concerning, paints only a partial picture of the continent's burgeoning Web3 ecosystem.While funding has plummeted, the number of deals has remained relatively stable, and Africa's share of global blockchain deals actually reached an all-time high of 1.8%. CV LabsThis suggests a shift in the types of projects being funded and the investment strategies employed by venture capitalists operating in the region. Did you know we 39;ll have an NFT gallery, a Metaverse experience, and even a job fair at CV Summit 2025?! Let us tell you about our five experience zones whereWhat factors contributed to this dramatic decrease? Fed Officials Not Signaling Interest Rate Cuts Yet. AugWhat does this mean for the future of blockchain innovation in Africa?And how can entrepreneurs navigate this challenging funding environment? 🌞 CV Labs Genesis Garden is officially open! Yesterday, we officially opened our revamped Genesis Garden, located at the CV Labs Zug Terrace, for theWe'll delve into these questions and more, providing insights and actionable advice for navigating the evolving African blockchain landscape. 🎉Tracy Trachsler and Nicolai Reinbold have been promoted at CV Labs! Tracy has stepped up into the role of Managing Director, and Nicolai has been promoted toLet's unravel the complexities behind this seemingly contradictory trend and explore the opportunities that remain for ambitious blockchain ventures across the continent.

Understanding the CV Labs Report: Key Findings on African Blockchain Investment

The CV VC African Blockchain Report, released on July 16th, 2025, provides a comprehensive overview of the state of venture funding in the African blockchain space.The report highlights several key findings, offering a nuanced understanding of the current market dynamics.

• Significant Funding Decrease: As previously mentioned, African blockchain ventures secured $34.7 million in H1 2025, representing a 70% decline compared to H1 2025.
• Deal Volume Relatively Stable: While funding decreased dramatically, the number of deals only dropped by 9%, with 12 deals completed in H1 2025.
• Increased Global Deal Share: Despite the funding dip, Africa's share of global blockchain deals reached an all-time high of 1.8%.This suggests a higher concentration of smaller deals occurring in Africa.
• Sector Focus: Fintech, Logistics, and Mobility sectors continue to attract the most interest from investors.

The report emphasizes the contrast between the significant drop in funding and the relatively stable deal volume.This indicates that investors are being more selective and focusing on smaller deals, potentially de-risking their investments in a more uncertain economic environment.The rise in global deal share, despite lower funding, underscores the growing importance of the African blockchain ecosystem on a global scale.It highlights that while individual investment amounts may be smaller, the sheer number of projects and entrepreneurs building in Africa is continuing to increase.

Factors Contributing to the 70% Funding Decline

Several factors may have contributed to the 70% decrease in African blockchain venture funding.Understanding these factors is crucial for both entrepreneurs and investors navigating the current market.

• Global Economic Downturn: The global economic climate has tightened considerably in the past year.Rising interest rates, inflation, and geopolitical instability have led to a general pullback in venture capital investment across all sectors, including blockchain.
• Increased Investor Caution: The ""crypto winter"" of 2022-2023 likely made investors more cautious about deploying capital into blockchain projects, particularly those in emerging markets like Africa. On July 16, Swiss blockchain venture capital firm CV VC released its latest report on African venture funding. Within the report, CV VC highlighted that Africa secured $34.7 millionThe collapse of major crypto exchanges and projects shook investor confidence and led to a flight to safety.
• Maturation of the African Blockchain Ecosystem: The African blockchain ecosystem is maturing.Early-stage projects that were easily funded in previous years now face greater scrutiny and competition. Update J:17 am UTC: This article has been updated to correct the percentage figure to 70%. Blockchain venture funding in Africa decreased by 70% African blockchain venture funding down 70% in H1 2025 CV LabsInvestors are demanding more demonstrable traction and viable business models.
• Shifting Investment Focus: Venture capitalists might be shifting their focus towards more mature projects or specific sub-sectors within the blockchain space, leaving early-stage or less-proven ventures struggling to secure funding. In Africa, Bitget reported a 1,614% user growth as the region continues to dive into the Web3 space. In South and Southeast Asia, the crypto exchange reported a 729% and 216% growth, respectively.Perhaps investors are looking for projects with clear paths to profitability rather than purely speculative ventures.
• Currency Fluctuations: Many African currencies have experienced significant fluctuations against the US dollar, making investments in local currencies riskier for foreign investors.

It's important to note that these factors are interconnected and reinforce each other.The global economic downturn amplifies investor caution, which in turn impacts funding decisions and preferences. 🔥 The latest CV VC African Blockchain Report has been African blockchain venture funding down 70% in H1 2025 CV Labs to Forbes on how venture capitalists can support blockchainThe maturation of the African blockchain ecosystem also plays a role, as investors demand more from the projects they choose to fund.

Silver Linings: Increased Deal Activity and Global Share

Despite the significant funding decrease, the CV VC report highlights some positive trends. CV Labs Post CV Labs 14,969 followers 3y Report this post Our heartfelt congratulations go out to CV VC portfolio company OrviumThe fact that the number of deals only decreased slightly suggests that the African blockchain ecosystem remains active and vibrant.

• Resilience and Innovation: The continued deal activity demonstrates the resilience and innovation of African blockchain entrepreneurs. CV Labs Post CV Labs 14,926 followers 2y Report this post There s something punk about NFTs creating a whole new monetaryDespite the challenging funding environment, they are continuing to build and launch new projects.
• Smaller Deal Sizes: The discrepancy between funding and deal volume indicates that deal sizes have decreased. 🚀 Blockchain entrepreneurs, listen up! Due to popular demand, we 39;ve extended the application deadline for Batch_07 of the CV Labs Accelerator to July 31st.This could be a sign of investors being more selective and funding smaller, more focused projects.It might also reflect a trend towards bootstrapping and alternative funding sources.
• Growing Global Relevance: The increase in Africa's share of global blockchain deals underscores the continent's growing importance in the global blockchain landscape. the trend of decline with H1 2025 funding coming in 57% lower than H1 2025. However, all was not doom and gloom when it came to the African Web 3.0 startup space. H1 2025 yielded the highest-ever share of African blockchain VC deals, coming in at 1.8% of global deal count, up from 1.3% in 2025. Sector-wise, Fintech, Logistics, Mobility, andThis suggests that Africa is becoming an increasingly attractive market for blockchain innovation and adoption.

The increase in global deal share is particularly noteworthy.It suggests that even though funding amounts are lower, the volume of activity is increasing relative to other regions. Venture Builder at Ƀancambios Regenerative Banking. 🔥 The latest CV VC African Blockchain Report has been featured in African blockchain venture funding down 70% in H1 2025 CV LabsThis signifies a growing commitment to blockchain technology within Africa, even amidst global economic headwinds.

Key Sectors Attracting Blockchain Investment in Africa

The Fintech, Logistics, and Mobility sectors continue to dominate blockchain investment in Africa.This is due to the clear use cases and potential for blockchain technology to address specific challenges in these industries.

• Fintech: Blockchain technology offers significant potential to improve financial inclusion, reduce transaction costs, and enhance security in the African fintech sector.Applications include mobile money platforms, cross-border payments, and decentralized finance (DeFi) solutions.
• Logistics: Blockchain can improve transparency, traceability, and efficiency in African supply chains. It outlines the key players in the African blockchain ecosystem and the innovative companies currently attracting funding 2025 and H1/2025 were impactful periods for blockchain in Africa.Applications include tracking goods, verifying product authenticity, and streamlining customs processes.
• Mobility: Blockchain can enable secure and transparent ride-sharing platforms, vehicle tracking systems, and payment solutions for the transportation sector.

Beyond these core sectors, other industries are also exploring the potential of blockchain technology. Blockchain venture funding in Africa decreased by 70% in the first half of 2025 compared to the same period in 2025. On July 16, Swiss blockchain venture capital firm CV VC released its latest report on African venture funding. Within the report, CV VC highlighted that Africa secured $34.7 million in H1 2025.These include:

• Agriculture: Improving traceability and transparency in agricultural supply chains, ensuring fair prices for farmers, and reducing fraud.
• Healthcare: Securing patient data, streamlining medical records, and improving the supply chain of pharmaceuticals.
• Education: Verifying academic credentials, managing student records, and creating decentralized learning platforms.

Regional Distribution of Blockchain Funding: Seychelles and South Africa Lead

While the CV Labs report doesn't provide a detailed breakdown of funding by country, other reports, such as those from TechCabal, indicate that Seychelles and South Africa are the leading destinations for blockchain funding in Africa. CoinTelegraph - African blockchain venture funding down 70% in H1 2025 LEARN MORE TechCabal - Seychelles, South Africa rule Africa s blockchain roost with 95% of fundingThis is likely due to a combination of factors, including favorable regulatory environments, developed financial infrastructure, and a strong talent pool.

These two countries account for a significant portion of the blockchain funding in Africa.South Africa, with its relatively mature financial market, is attractive to investors seeking more stable and established ecosystems. The CV VC data unveiled that Africa s global share of blockchain deals in H1 2025 increased to an all-time high of 1.8% while funding dipped to 0.6%. Notably, blockchain businesses in Africa raised $34.7 million (-74%) across 12 deals (9%) during the first half of 2025, according to CV VC s data.Seychelles, on the other hand, has positioned itself as a crypto-friendly jurisdiction, attracting blockchain companies looking for a more permissive regulatory environment.

Navigating the Funding Drought: Strategies for African Blockchain Startups

Given the challenging funding environment, African blockchain startups need to adopt innovative strategies to secure capital and thrive.Here are some actionable tips for navigating the funding drought:

1. Focus on Building a Sustainable Business Model: Investors are increasingly focused on projects with clear revenue streams and sustainable business models. 🇨🇭 CV Labs Zug has been voted as one of the most beautiful meeting spaces in Switzerland! Thank you to Eventlokale amp; everyone who voted to recognize ourAvoid purely speculative ventures and prioritize projects with tangible value propositions and demonstrable traction. Prove your product works and solves a real problem.
2. Explore Alternative Funding Sources: Don't rely solely on traditional venture capital. African Blockchain Venture Funding Decreases 70% Despite Surging Deal Activity African blockchain venture funding has decreased by 70% in the first half of 2025 compared to the same period in 2025.Explore alternative funding sources such as angel investors, crowdfunding, grants, and accelerator programs.
3. Bootstrapping and Revenue Generation: Prioritize generating revenue early on. African blockchain venture funding down 70% in H1 2025 CV Labs Although global venture funding fell 34%, African blockchain funding accounted for an all-time high of 1.8% of the globalBootstrapping can help you maintain control of your company and demonstrate your ability to build a viable business. Even small revenues are better than none.
4. Network and Build Relationships: Attend industry events, connect with investors and mentors, and build relationships within the blockchain ecosystem.Networking can open doors to funding opportunities and valuable advice.
5. Focus on Solving Real-World Problems: Prioritize projects that address specific challenges in the African market. African blockchain-related enterprises experienced a pronounced reduction in investment during the initial half of 2025, according to a research report by CV Labs. This investment drop is a stark 74% less than those recorded in the preceding similar periods.Investors are more likely to fund projects that have a clear impact and address real needs. What problems can your blockchain solution solve for the average African citizen?
6. Highlight Traction and User Growth: Showcase your progress and demonstrate user adoption. We ve created a whole ecosystem - a base layer for blockchain startups - where founders are supported with funding, advice, and connections. The CV LabsMetrics such as active users, transaction volume, and revenue growth are key indicators of success.
7. Seek Mentorship and Guidance: Connect with experienced entrepreneurs and mentors who can provide guidance and support.Learning from the successes and failures of others can help you avoid costly mistakes.
8. Consider Participating in Accelerator Programs: Programs like the CV Labs Accelerator offer funding, mentorship, and access to a network of investors and advisors.They can be a valuable resource for early-stage startups.

By focusing on building sustainable businesses, exploring alternative funding sources, and networking effectively, African blockchain startups can increase their chances of securing funding and thriving in the current market.

The Future of Blockchain Venture Funding in Africa

While the 70% funding decline in H1 2025 is a cause for concern, it's important to remember that the African blockchain ecosystem is still in its early stages.The long-term outlook remains positive, with significant potential for growth and innovation.

The dip in funding could be a temporary setback, reflecting broader economic trends and investor sentiment.As the global economy recovers and investor confidence returns, funding for African blockchain ventures is likely to rebound.The underlying drivers of blockchain adoption in Africa – including financial inclusion, economic empowerment, and improved efficiency – remain strong.

Opportunities for Growth

• Increased Institutional Investment: As the African blockchain ecosystem matures, institutional investors are likely to become more involved.This could lead to larger funding rounds and increased stability.
• Growing Government Support: Governments across Africa are increasingly recognizing the potential of blockchain technology to drive economic growth and improve public services.Supportive regulatory frameworks and government-led initiatives could create a more favorable environment for blockchain innovation.
• Emergence of New Use Cases: As blockchain technology evolves, new use cases are likely to emerge in Africa.This could attract new investors and create new opportunities for entrepreneurs.
• Growing Tech Talent Pool: Africa's growing tech talent pool is a key asset for the blockchain ecosystem.As more developers and entrepreneurs enter the space, innovation is likely to accelerate.

The African blockchain ecosystem has the potential to become a global leader in blockchain innovation.By addressing specific challenges in the African market and building sustainable businesses, African blockchain startups can attract significant investment and create lasting impact.

Conclusion: Resilience and Opportunity in the African Blockchain Space

The 70% decrease in African blockchain venture funding in H1 2025, as reported by CV Labs, is undoubtedly a significant development.However, it's crucial to view this decline within the broader context of the evolving African blockchain landscape.While funding has decreased, the number of deals remains relatively stable, and Africa's share of global blockchain deals has actually increased.This suggests a shift in investor focus towards smaller, more sustainable projects, rather than a complete abandonment of the African market.The key takeaways from the CV Labs report are clear: the African blockchain ecosystem is resilient, innovative, and continues to hold immense potential.The downturn presents an opportunity for startups to focus on building strong business models, exploring alternative funding sources, and demonstrating tangible value to investors.For investors, it's a chance to identify promising projects with strong fundamentals and contribute to the long-term growth of the African blockchain ecosystem.Ultimately, the future of blockchain in Africa remains bright, driven by the continent's entrepreneurial spirit, growing tech talent pool, and the transformative potential of blockchain technology. The time to build is now. Are you ready to be part of the next wave of African blockchain innovation?Consider applying to programs like the CV Labs Accelerator or connecting with other entrepreneurs in the space to learn more and get involved.The opportunity is there for those who are willing to build.