Africa-Focused Venture Capital Firm Echovc Launches Blockchain Fund
The 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 been on a decline over the past year, Echovc founder Eghosa Omoigui claimed that investing now enables the VC to get in “at lower entry valuations on average than in prior years.” Startups Offering Blockchain-Based Solutions Qualify for Funding
The pan-African venture capital firm, Echovc, recently said it had launched an $8 million fund which is dedicated to Africa’s blockchain startups. According to the company’s blog post, the fund known as the Echovc Chain will be accessible to startups that are attempting to solve the continent’s challenges using the blockchain.
As noted in a report by Techcabal, Echovc’s new fund has been launched at a time when global funding for crypto and blockchain startups has been declining. The drop in funding has already forced some entrepreneurs to sell their startups.
Echovc Targets Underserved African Countries
Yet, despite this plunge in funding, Eghosa Omoigui, the founder and general managing partner at Echovc, is quoted in the report suggesting that now is the ideal time to fund startups because doing so allows the VC “to invest at lower entry valuations on average than in prior years.” The founder added: While this has somewhat reduced VC appetite for crypto investing, we continue to remain excited about the useful applications of crypto and blockchain in Africa, and believe that crypto founders in Africa will continue to build for functionality to solve problems in Africa.
Meanwhile, the Techcabal report also revealed that Echovc has deployed over $41 million across 36 startups globally. In Africa, the VC firm has mainly targeted startups in the so-called underserved markets such as Kenya, Nigeria, South Africa, and Uganda. Startups that leverage blockchain to power foundational fintech infrastructure are among the firms being targeted. Firms 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 increased to between 12 and 20 companies.
Register your email here to get a weekly update on African news sent to your inbox:
Tags in this story Blockchain solutions, Decentralized Autonomous Organizations, Echovc, Echovc Chain Blockchain Fund, Eghosa Omoigui, Venture Capital
What are your thoughts on this story? Let us know what you think in the comments section. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. After Presidential Rebuke, Nigeria"s Central Bank Says Demonetized Naira Banknotes Still Legal Tender AFRICA | 1 day ago South African Rand Plunges to New 2023 Low Versus the US Dollar AFRICA | 6 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitKeep and Bitget Join Forces to Host the Sui Futures Airdrop; Get Ready for the Sui Mainnet Next articleBitcoin, Ethereum Technical Analysis: BTC Hits $27,000, Securing Fresh 9-Month High Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals