USDC-issuer Circle backs CV VC’s $20M African Blockchain Fund

Circle Ventures, the venture arm of USDC issuer Circle, has joined as a limited partner (LP) in CV VC’s $20 million African Blockchain Fund, which backs promising blockchain startups across the continent.

The details 

• CV VC’s African principal and head of growth, Brenton Naicker, announced on social media that Circle is backing the fund to support African blockchain innovators.
• Circle Ventures’ exact contribution to the African Blockchain Fund is undisclosed, but the fund aims to invest $20 million in African startups over the next 8–10 years.
• CV VC has already backed several African startups and enrolled others in its global nine-week accelerator, which typically ends with grants for participants. 

Key quote 

• Naicker posted on LinkedIn: 

“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. We look forward to advancing the future of Web3 together with the Circle Ventures team.” 

Before now 

• Launched in 2022, the African Blockchain Fund is CV VC’s early-stage vehicle dedicated to African blockchain startups, with investments starting at $100,000 and a planned lifespan of up to 10 years.
• Startups that receive funding also gain access to a 10-week accelerator designed to strengthen their operations and attract further investment.
• CV VC has invested in multiple African companies, some of which participated in its accelerator. These include Nigeria-based cross-border payments company Ivorypay and Kenyan blockchain credit firm, Nyayomat. 
• CV VC has backed several African startups, including Nigeria’s cross-border payments firm Ivorypay and Kenya’s blockchain credit company Nyayomat, both of which joined its accelerator.

Zoom out 

• According to CV VC’s annual blockchain funding report, African blockchain startups still struggled to raise funds last year compared to the successes they recorded in 2022. 
• This highlighted a cautious funding environment and a slow recovery from the funding dearth induced by the crypto bear market from late 2022 into 2024. 
•  The report said African firms raised $122 million across 30 deals, 2.3% of the global capital. 
• However, the report focused exclusively on venture capital investments and does not include grants to which many early-stage African founders are now turning to for operational funds.