Finding venture capital was a huge gridlock among blockchain startup founders in Africa before 2019. But thanks to the growing adoption of the technology, backed by the potential it holds in eliminating social-economic barriers in the continent, the funds are now more available than ever.

Challenges such as lack of verifiable digital identity systems, lack of accountability in health, finance, agriculture, mining, law, and education sectors across Africa have inadvertently created the environment for blockchain to thrive.

The Birth of CV VC

The full potential of blockchain in Africa is yet to be tapped. Established in 2016, and originally starting out as Lakeside Partners before its transition, CV VC, a Swiss-based Web3-focussed venture capital has been leading in this front.

The tech startup whose acronym means ‘Crypto Valley Venture Capital’ fashions itself as an early-stage venture capital focusing on startups that work with blockchain and other Web3 technologies.

According to its managing director Gideon Greaves, the venture capital originally started out by organizing tech-focused events that touch on networking, gatherings, competitions, and hackathons. It then saw an opportunity to delve deeper into tech, so its business model pivoted. And that was the birth of CV VC.

“In addition to the venture capital investments, we operate our own incubator and ecosystem business,” Greaves told Nodo News. “This is under a labs brand, consisting of co-working spaces, advisory and events,” he said in an interview in Cape Town, South Africa.

It now works with qualified investors by providing them with resources and comprehensive exposure to blockchain technology and digital assets with the integration of its investment product suite consisting of AMCs (actively managed certificates). These AMCs have the same working mechanisms as legacy venture capital funds.

There’s also an added benefit in that the AMCs are fully-bankable investment certificates with a Swiss International Securities Identification Number (ISIN) that can be booked into any portfolio.

How CV VC Works

(Cape Town, South Africa / Photo by Nodo News)

There are two arms, CV VC and CV VC Labs. The former is the holding company and the investment vehicle of the entire business, and whose main focus is venture capital. The other wing is the ecosystem driving the business of the company.

“Venture capital is the business’ core focus and mandate of CV VC; to invest exclusively in startups that utilize blockchain. We, however, also do token investimization as well. That is, proper token sales,” Greaves says.

The CV Labs project acts as a platform for CV VC’s portfolio companies to get integrated into the global ecosystem. From there, they can aptly position themselves for an opportunity to succeed in blockchain and Web3.

This is as opposed to investing in the startups and then leaving them to move around on their own, while the CV VC just sits on the board and does the startups’ quarterly revisions.

Greaves explains: “We are actively involved in helping startups grow. And we leverage all parts of the ecosystem to do that. We have co-working spaces and in some parts of the world, we own and operate the spaces entirely. In some regions where we’re just launching, we do a partnership. We’re not necessarily focusing on building a commercial property business right now but that is in the pipeline. Our focus is on the funding ecosystem in Africa, not necessarily a commercial property business.”

Bridging Web3 and Web2

The ultimate goal of CV Labs is to create adoption and bridge the knowledge gap between Web3 and Web2 spaces.

To achieve that, it runs a number of different initiatives. They include networking events, small drinks get-togethers, cocktails, evening events, and dinners that advance the its Web3 literacy goals.

It also runs a series of women-focused engagements with an idea to empower women in the blockchain space.

CV VC prepares reports on tech across the globe. The most recent is the Africa Blockchain Report, which according to Greaves, is among the most read such reports. According to the study, 41 African blockchain startups in eight countries raised $127 million in 2021. That is the highest recorded in a single year since blockchain began making in roads into the continent in 2015.

The survey covers topics in the technology, including the regulatory environment, use cases, and funding data. It also shows which regions are most attractive to fintech, and capital flows in African countries.

A Blockchain Accelerator is Coming to Africa

A public-private partnership between CV VC and the Swiss State Secretariat for Economic Affairs (SECO) is expected to see CV VC build the first-ever blockchain-focused accelerator for Africa.

The goal of the accelerator is to invest in 100 startups from the African continent over four years. It will focus on startups that work across supply chain, healthcare, fintech, and government sectors.

“Africa is teaching us about real use cases of blockchain and the opportunity it presents for greater inclusion,” says Greaves.

The company, he notes, has continued to receive more applications from African startups compared to rest of the world.

CV VC continues to sit at the driving seat of Africa’s blockchain financing vehicle, and as more countries adopt the technology, it hopes to make Africa a web3 powerhouse that competes with the rest of the world.