Africa-focused venture capital (VC) firm Echovc has launched a fund that seeks to support blockchain startups on the continent. While global blockchain funding has declined over the past year, Echovc founder Eghosa Omoigui claimed that investing now allows VC to enter “with lower entry valuations on average than in previous years.”
Startups offering blockchain-based solutions qualify for funding
Pan-African venture capital firm, Echovc, recently said that it had launched an $8 million fund dedicated to blockchain startups from Africa. According to the company blog postthe fund known as Echovc Chain will be accessible to startups trying to solve the continent’s challenges using the blockchain.
As noted in a Techcabal report, Echovc’s new fund was launched at a time when global funding for cryptocurrency and blockchain startups has dwindled. The funding slump has already forced some entrepreneurs to sell their startups.
Echovc targets underserved African countries
Despite this drop in funding, however, Eghosa Omoigui, founder and managing partner of Echovc, is quoted in the report as suggesting that now is the ideal time to fund startups because doing so allows the VC to “invest at lowest entry ratings on average.” than in previous years.” The founder added:
While this has somewhat dampened VC appetite for cryptocurrency investment, we remain excited about the useful applications of cryptocurrency and blockchain in Africa, and we believe that cryptocurrency founders in Africa will continue to develop the functionality. to solve problems in Africa.
Meanwhile, Techcabal’s report also revealed that Echovc has deployed more than $41 million in 36 startups around the world. In Africa, the venture capital firm has primarily focused on startups in so-called underserved markets, such as Kenya, Nigeria, South Africa and Uganda. Startups leveraging blockchain to power critical fintech infrastructure are among the targeted companies. Businesses focused on blockchain functionality and decentralized autonomous organizations also qualify for funding.
According to Echovc, once the funds are fully deployed, its portfolio of companies will have grown to between 12 and 20 companies.
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