Ditching Web3: How African Blockchain Founders Can Secure Local Investment
Africa’s burgeoning blockchain scene faces a critical challenge: attracting local investment. While the continent’s tech landscape is rapidly evolving, the perceived risk associated with blockchain and “Web3” can deter traditional investors. Savvy African founders are learning that leading with the underlying technology may be counterproductive when pitching to investors. Instead, a focus on tangible problem-solving and practical applications is key to unlocking funding.
Solve the Problem, Not the Tech
At ETHSafari 2025 in Nairobi, industry experts like Gideon Greaves, Head of Investment at Lisk, and Brenton Naicker, Head of Growth at CV VC, emphasized a crucial shift in focus for African blockchain entrepreneurs. Naicker highlighted that successful ventures are not inherently “blockchain businesses.” Rather, they leverage blockchain infrastructure as a more efficient backend for existing sectors like fintech or agritech. The technology itself should be secondary to the core problems being addressed. Investors, particularly those new to the blockchain space, often struggle to grasp the abstract concept of Web3. Focusing on the actual solution, the market opportunity, and the potential impact on users resonates far more effectively. By presenting a clear value proposition and highlighting how the blockchain enhances the user experience without the need for technical jargon, founders can significantly increase their chances of securing investment.
In conclusion, African blockchain founders should prioritize demonstrating the practical benefits of their solutions over simply promoting the Web3 label. This approach is more likely to resonate with local investors who are primarily focused on tangible results and market opportunities. Highlighting the specific problems being solved and the impact on end-users, rather than dwelling on the underlying blockchain technology, is the most effective strategy for attracting investment and fostering growth within Africa’s dynamic tech ecosystem.
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