As many in Africa continue to adopt crypto and blockchain, more venture funding flowed into the continent in Q1 2022 than in Q1 2021, according to a new report by blockchain investment firm Crypto Valley Venture Capital (CV VC) and Standard Bank.

The report, titled “The African Blockchain Report 2021,” shows that blockchain startups were able to raise $91 million in the first quarter of 2022. Q1 2022 saw a 1,668% year-on-year increase in cash inflow compared with Q1 2021's growth of 149% — a jump of more than 11x, according to CV VC.

While Africa has not yet seen a “blockchain mega-deal,” the report predicts that unicorns may emerge from the region’s crypto and blockchain scene within two to three years as more venture capitalists show interest in the region.

African countries that raised the most capital in 2021. Source: African Blockchain Report

Gideon Greaves, CV VC’s managing director for Africa, told Cointelegraph that blockchain funding in Africa surpassed other forms of startup funding. Working in a venture capital firm that focuses on investing in blockchain projects, Greaves noted that the region has an opportunity to enter markets faster through blockchain. He said that:

“We see this development as a key enabler for African enterprises, giving them rapid entry to markets by using blockchain as the catalyst to build new businesses.”

Additionally, Greaves said that the lack of legacy infrastructure within the region gives blockchain startups an advantage because they have the opportunity to fill in the void with fast, innovative technologies.

According to the CV VC executive, Africa is equipped with the right tools, the motivation and the population to create large companies that serve millions of people. Greaves expects the continent to become the leading region for “capitalizing on business using blockchain” within the next five years.

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Meanwhile, venture capital firms recently invested $23 million to launch crypto exchange platform Mara. The exchange will initially commence its operations within Kenya and Nigeria to provide a simple way to trade crypto.

Another report released in April showed that the lack of financial services infrastructure in Nigeria boosted crypto ownership in the country. The study also highlighted that citizens of the country began to use crypto as their alternative for storing and transferring assets.