African startups struggle to attract funding, mainly because the market lacks liquidity. Blockchain could help investors to realize exit opportunities, which in turn creates a broader funding market for startups.
African startups raised a record $1.34 billion in venture capital funding last year, compared to just under $200 million in 2015, according to media firm WeeTracker. Despite the impressive growth rate, African startups still struggle to attract funding.
Lack of exit opportunities: Investors hesitate
A major challenge for investors in Africa is the lack of exit opportunities. “It is easy to invest money in Africa right now, but it is hard to make money in investing here. The key is to be exit centric — we only invest in entrepreneurs who are focusing on building sustainable businesses that can exit,” says Ben White, CEO of Venture Capital for Africa (VC4A).
Traditionally, venture capital investors look at three major exit avenues: IPOs, mergers and acquisitions. But each of those requires that a company achieves a reasonable level of growth. In Africa, however, it often takes more time to reach this growth, in particular for tech startups, as the ecosystem is not yet well-developed. Thus, other investments might achieve higher returns – the Central Bank of Nigeria’s Open Markets Operations Bills currently return about 15% per annum.
Both investors and startups need a more liquid equity market. “One of my key thesis is that if we have more secondary markets in Africa that allow early-stage investors to get liquidity, we will be able to recycle funds within the ecosystem,” said Yele Bademosi, Director at Binance Labs and founder of Nigeria-based angel investment firm Microtraction.
You may also like: Blockchain for the Environment: 3 Use Cases
Token-based financing to tackle the liquidity challenge
That’s where blockchain-based financing can help. It can increase market access for early-stage startups and create a secondary market for investors to resell their initial investments. “There is an opportunity to create our own funding infrastructure using blockchain to issue security tokens or hybrid tokens,” says Bademosi.
One example is Malta-based equity crowdfunding company Bloomio, which has built such a blockchain-based infrastructure to help startups raise early-stage capital in exchange for security tokens. After the seed round, investors can trade on blockchain-powered secondary markets. Some African startups have already started using Bloomio.
“Blockchain-powered equity crowdfunding can open up access to emerging tech startup hubs like Nigeria, South Africa and Kenya to a new set of investors,” said Bloomio’s CEO Maxim Lyadvinsky. “Investors who are looking to diversify their expected profit-risk levels can now access vetted startup opportunities.”
Moreover, as most funding in Africa comes from sources outside of Africa, the global reach of token-financing can help to connect international investors and domestic entrepreneurs. With security tokens, it becomes relatively easy to invest everywhere in the world.
The blockchain revolution is yet to come in Africa. Although there were some high-profile ICOs such as Golix, a crypto exchange based in Zimbabwe that raised $23 million in June last year, not that much has happened on a larger scale. However, the potential for token-based financing in Africa is enormous, and the first milestones have been achieved. Way to go!
Thank you ever so for you article post. Really looking forward to read more. Want more. 야설
Im thankful for the blog post.Really looking forward to read more. Fantastic.
Thanks for discussing your ideas on this blog. Likewise, a fable regarding the banks intentions any time talking about home foreclosure is that the financial institution will not getreceive my installments. There is a certain amount of time in which the bank can take payments from time to time. If you are way too deep within the hole, they’re going to commonly require that you pay the payment entirely. However, i am not saying that they will not take any sort of payments at all. If you and the loan company can manage to work a little something out, a foreclosure process may end. However, if you continue to neglect payments beneath new program, the property foreclosure process can just pick up where it was left off.
I am forever thought about this, regards for putting up.Feel free to surf to my blog post: atkins induction
Je m’appelle Charles Migaud et je suis Consultant SEO à Lille depuis plusieurs années en tant que Freelance et chez l’annonceur. Expert du Référencement Naturel, j’accompagne mes clients pour gagner en visibilité sur Google.
Wagering requirements are the amount you need to stake before you can withdraw your winnings. They’re usually low for no deposit bonuses and are typically only applied to the cash that you win from your bonus. For example, if you claim 15 free spins and win $10, and the offer comes with x15 wagering requirements, you’ll need to stake a total of $150 before you can cash out your winnings. All the works are done by the machine, we’re impressed by the low number of complaints they’ve received relative to their size. There is no safer way of depositing money online without revealing personal information than by purchasing a basic card, 4 jacks casino jackpot nevada simply put. Contamination of public water or food for terrorism, other than slot machines. As mentioned before, you can play all kinds of games at the best live casinos online. Furthermore, welcome signup promotions. So, matched deposits and more.
https://japan-lgbtq-alliance.org/ja/community/profile/jerelenehan5516/
When casinos advertise that their slot machines pay out an average of 90 percent, the fine print they don’t want you to read says that you lose 10 cents from each dollar you put into the machines in the long term. (In probability terms, this means that your expected winnings are minus 10 cents on every dollar you spend every time the money goes through the machines.) The Igt S2000 Slot Machine Is Probably The Most Recognizable Slot Machine In The World Due To Its Wide Distribution And The Movie Industry. Most Casinos Today Will Have These On The Game Floor. The Igt S2000 Remains A Favorite Of “Reel Machine” Enthusiast Worldwide. Igt S2000 Slot Machines Are A Must Have For Any Floor And Are Also One Of The Lowest Cost Slots Available Now.
You actually revealed that terrifically!need help in writing an essay essay writings professional cv writing service
Big Win Cat is a relatively simple slot with 3 reels and just 5 paylines, featuring cute symbols that include gold coins, green pouches, turtles, pigs, fancy fans and gold fish. Joker Ra is an Egyptian-style slot machine with a funny pharaoh as a joker. The Joker Ra slot has 5 reels and 10 pay… The player is waited by jokers, standard icons, bonuses in the form of “good luck wheel” and free spins. The advantageous combination is made by three identical icons in a row. They fill one of five active bands. Advantages of the game machine Big Win Cat: simple design; clear gameplay; easy rules; good graphics; the existence of effects; high-quality study of details. Casinoisy is not affiliated or connected with any sports teams, event organizers or players displayed in its websites. Casinoisy is not affiliated or connected with any movie, television or mobile brand.
https://libertadores.com.br/community/profile/eccvincent1000/
Once the player’s and dealer’s hands are decided and locked down, the cards are laid out and compared. For the player to win, he or she must win both hands. Consequently, to lose, he or she must lose both hands. If the player wins one hand and the dealer wins the other, the game is a draw. Due to those rules, players are able to play many hands because it’s very common to get a draw. This page starts by explaining how Pai Gow Poker works. Then Fortune Pai Gow poker, an online variant from SG Digital is reviewed, including details of the side bet action you can place. Our best advice to players in Las Vegas would be to ensure they go with a casino that’s reliable and offers a fair range of odds and betting opportunities on games like Gow Poker. There are so many casinos available that it can be difficult to distinguish one from the next, so be sure to take what we said into consideration when looking for Pai Gow poker Vegas table games.
Whats up very cool blog!! Man .. Excellent .. Amazing .. I will bookmark your blog and take the feeds also?I am satisfied to seek out numerous useful info right here in the publish, we need work out extra techniques in this regard, thank you for sharing. . . . . .
Dan anda bisa bermain kapan saja, terdapat peluang bermain dimana saja melalui smartphone tablet atau pc, bisa menjadikan peluang usaha tambahan setiap harinya hingga ratusan juta. Terdapat banyaknya bonus kami berikan untuk para bettor, membuat Situs Rtp Live menjadi Situs Rtplive Slot Online satu-satunya dengan bonus sangat banyak. Bagi anda pencinta Slot Gacor anda bisa mendapatkan kemenangan sangat besar & bonus sangat banyak jadi anda tidak perlu khawatir soal bonus. Hanya Rtp Slot Gacor memberikan keuntungan banyak. Tentu saja membuat anda pencinta Rtp Slot Live mengantongi untung. Dengan cara ini, player yang bermain game judi slot online akan merasakan kepuasan yang mendalam. Karena itu, jika anda tertarik untuk melakukan taruhan secara online, pastinya banyak hal yang mesti dilakukan termasuk daftar dan gabung ke dalam agen. Daftar dapat dilakukan dimana saja jila dilakukan bersama Hoki99 slot. Karena sebagai website slot deposit pulsa tanpa potongan terbaik dan resmi, kami memberikan pelayanan tanpa henti untuk semua bettor yang bermain. jadi tidak perlu khawatir jika nanti anda tidak bisa dapatkan akun member. Dengan hanya duduk manis di rumah saja, anda sudah bisa akses dan menikmati keseruan yang ada di dalam situs slot kamu.
https://232898.peda.univ-lille.fr/community/profile/cvhjim32487423/
© 2023 Casino-Bonus.Club they have another promoup to €100 no deposit bonus via facebook,check your email or check their facebook page facebook Playbet24 i’m cashout 500 € with 10 free no deposit bonus and don’t have limit withdraw, this casino is very seriousquote. It is false why in playbet is as 100 x 1 ndbonus of maxcashout © 2023 Casino-Bonus.Club We are an independent directory and reviewer of online casinos, a casino forum, and guide to casino bonuses. i’m cashout 500 € with 10 free no deposit bonus and don’t have limit withdraw, this casino is very seriousquote. It is false why in playbet is as 100 x 1 ndbonus of maxcashout they have another promoup to €100 no deposit bonus via facebook,check your email or check their facebook page facebook Playbet24