ACR #16: New VC Fund for Blockchain Startupsđ°
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Whatâs the news?
A top African venture capital firm EchoVC announced the launch of an $8 million-blockchain seed fund for African startups.
âWe made our first investment in the blockchain segment in 2021, and have continued making further pre-seed and seed investments since then. For African markets, we believe blockchain functionality is more of a need, rather than a want, and our thesis is to leverage these functions to enable new leapfrogs, or unlock novel market opportunities, across the continentâ, the venture capital firm said in the blog post announcing the new fund.
What does this mean?
One of the most interesting news that came out of Africaâs crypto space from a venture perspective this month has been the pilot seed fund from EchoVC, a traditional venture firm that has invested in companies like Gro Intelligence and Migo and is also regarded as the Sequoia Capital for underserved markets.
Though the venture firm announced the new fund in early March 2023, it hasnât gained as much media attention especially since everyoneâs focus is on the cash crisis in Nigeria and the banking collapse happening in the major economies of the world and its effect on local startups.
However, from the cash crunch in Nigeria and the Silicon Valley Bank collapse in the United States, thereâs a greater need for more investment in building blockchain solutions that could provide alternatives. For example, when the Nigerian central bank made it difficult for people and businesses to get foreign currencies, a few blockchain startups launched USD dollar cards backed by stablecoins and bitcoin.
So far, EchoVC has invested in B2B crypto infrastructure like OneLiquidity which provides crypto-as-a-service to other businesses and an interesting B2C product, Fonbnk, that allows you to swap airtime recharge for USDC. In all, it has about 7 blockchain startups in its portfolio right now.
The founder of the VC firm, Eghosa Omoigui, told Techcabal he expects their portfolio will have increased to between 12 to 20 companies at the end of the fund deployment.
In an environment where the regulatory pressure keeps rising for crypto firms, itâs bold and progressive to see a local VC firm dedicating a fund to the space.
If you are building an interesting blockchain solution for the African market and looking to raise a pre-seed or seed round, you can reach out directly to the firm. The link will be provided at the end of the newsletter.
What else?
African Fintech Startup Financed by FTX, SVB Said to Weigh Sale
Days after disclosing the extent of its exposure as a customer and portfolio company of Silicon Valley Bank, pan-African fintech startup Chipper Cash is said to be considering a sale.
Bitcoin and Stablecoins Will Bring Crypto Mass Adoption to Africa
Several speakers at last weekâs Blockchain Africa Conference in Johannesburg, South Africa picked bitcoin and stablecoins as the top two levers of crypto mass adoption on the continent.
Multinational consumer goods company, Reckitt, has announced the public launch of its non-profit Women in Innovation Fund (WiNFUND) NFT Africa collection.
Product of the week
Sportsbet.io
Sportsbet.io is a betting platform currently making waves among Africans that âlike to take risksâ. It has gained prominence among sports bettors because betting with crypto like BTC, ETH and USDT is easier than ever.
Personality SpotlightÂ
Ruth Isalema
Ruth Iselema got scammed of âŠ250,000 (~ $1200 at the time) trying to sell bitcoin in 2016. That made her see an opportunity to solve the problem of crypto trading in Africa. Six years down the line, Ruth Isalema is the founder and CEO of Bitmama, one of the leading crypto exchanges in Africa.
Whatâs the meme?
What we are reading
How Africans Are Using Bitcoin Without Internet AccessÂ
Thatâs all for now. See you next week Monday!
PS: Link to EchoVC.