Crypto Valley VC (CV VC)’s Africa Blockchain Fund has invested in 13 startups across five countries—Nigeria, South Africa, Kenya, Egypt, and Ghana—since it began deploying capital in 2022. The $20 million fund, managed by the Swiss blockchain-focused VC firm but deploying capital in Africa, is one of the few investors writing early-stage cheques into Web3 companies on the continent.
The fund started with a commitment of $125,000 for a 7% convertible note. After seeing the realities of building in African markets, CV VC adjusted its model to $150,000 for a 6% note. African early-stage founders often face high costs from poor internet access, unreliable electricity, and limited developer resources, according to Brenton Naicker, CV VC Principal and Head of Growth.
The revised approach was designed to give teams more room to grow while keeping the terms attractive to both sides. Naicker said the progress so far has been encouraging.
“We are in a very privileged position to have had approximately 50% of the startups in our portfolio go on to raise further funding,” said Naicker. “Beyond that, our companies are serving tier-one clients across the continent, such as Standard Bank and Visa, and their work has been recognised globally.”
A fintech-heavy portfolio
More than half of the fund’s Web3 investments are in fintech, with the rest spread across agritech, travel, and other sectors. Naicker said the weight of activity in fintech is consistent with where venture money flows more broadly across Africa.
“In the traditional space, roughly half of all venture dollars on the continent go to fintech, and we see the same in blockchain,” said Naicker. “It is the most mature vertical, with startups that show the strongest traction and scalability.”
The firm’s portfolio includes companies like Ivorypay, a Nigerian startup which helps small businesses accept crypto payments. The startup has processed more than $100 million in total payment volume (TPV) and raised follow-on capital. In South Africa, Altify, an alternative investment platform, has attracted over 70,000 users and manages over $20 million in assets. In July, CV VC added TurnStay, a South African tourism and travel payments company, which closed a $2 million seed round, in the latest disclosed addition to its portfolio.
CV VC has also backed Shamba Records, a regenerative agritech startup in Kenya already recognised in the media for its impact work.
Though exits remain rare in Africa’s Web3 ecosystem, Naicker said CV VC expects most deals to come through acquisitions by global firms seeking licences, payments infrastructure and local expertise, especially as more markets move toward regulatory clarity.
A signal of confidence
In September, Circle Ventures, the venture arm of the world’s second-largest stablecoin issuer, joined the Africa Blockchain Fund as an investor in its first exposure to African early-stage Web3 companies. The NASDAQ-listed company oversees $74.22 billion USDC stablecoins in circulation. Circle’s investment in the fund was not disclosed.
“Africa’s founders are building real-world blockchain solutions on utility, not hype,” said Naicker. “Circle’s involvement is a strong signal that the world is waking up to this momentum.”
Circle’s entry signals more than confidence in African startups. It also represents a positioning play for wider distribution of company-backed blockchains. Tether, issuer of the world’s most-used stablecoin USDT, has made a similar commitment in recent months after backing Shiga Digital.
Both stablecoin firms are competing to anchor their tokens in everyday financial activity across Africa, from remittances and payroll, to treasury and cross-border payments. By backing local funds and ventures, they place themselves closer to the companies that will drive adoption on the ground.
Naicker said CV VC plans to raise another Africa-focused fund once the current investment vehicle is fully deployed, but declined to disclose how much of the Africa Blockchain Fund remains unallocated.
“As soon as this fund is done deploying, we will then have another fund that will be deploying on the African continent,” said Naicker. “We intend to stay here.”
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