Circle Ventures has become a limited partner in CV VC’s $20 million African Blockchain Fund, dedicated to supporting early-stage African blockchain startups. The partnership aims to foster innovation and growth in the African blockchain space over the next 8-10 years. Brenton Naicker, CV VC’s African principal and head of growth, shared via social media that Circle’s backing will aid in the advancement of Web3 technology across the continent.
“Thrilled to announce that Circle Ventures has backed our CV VC African Blockchain Fund to support Web3 innovation across Africa… As stablecoins and Web3 technology continue to flourish across Africa, we remain committed to supporting pioneering founders driving change,” said Naicker on LinkedIn. The exact contribution of Circle Ventures to the fund has not been disclosed, but its involvement signifies strong support for African blockchain startups.
Circle Ventures partners for blockchain advancement
The fund, which launched in 2022, aims to invest $20 million into early-stage startups, offering them not only capital but also access to a ten-week accelerator program designed to solidify their operations and attract additional investment. CV VC has already supported various African startups, including Nigeria-based cross-border payments company Ivorypay and Kenya’s blockchain credit firm Nyayomat.
These investments are part of its commitment to nurturing the African blockchain ecosystem and helping startups achieve significant milestones. Despite these efforts, CV VC’s annual blockchain funding report for the previous year highlighted the difficulties African blockchain startups faced in securing funds compared to their success in 2022. The report noted that African firms raised $122 million across 30 deals, accounting for just 2.3% of global capital.
It also pointed out that many early-stage African founders are increasingly relying on grants for operational funds amid a cautious funding environment. The collaboration between Circle Ventures and CV VC is a significant step towards boosting blockchain innovation in Africa, providing much-needed financial and developmental support to emerging African tech entrepreneurs.
