It’s early days in web3, so It’s expected that challenges will emerge as the technology continues to gain ground amidst uncertainties. But like in every change, certain people will have to bear the brunt.

In a continent like Africa faced with payment issues, cryptocurrency was the borderless payment we needed. Few web3 startups were courageous enough to take advantage of this new technology to proffer solutions for Africa, while driving the adoption of crypto.

But these startups were met with a deadlock, which forced them to go defunct.

Defunct web3 Startups in Africa

Here are few Africa web3 startups which are no longer in operations:

Fluidcoins

A Nigeria crypto startup that provided a payment gateway for businesses and individuals was acquired by Blockfinex a Seychelles crypto company.

It’s not uncommon for startups to be acquired, but in this instance, the primary reason was its inability to secure funding.

Would Fluidcoins still be in operation today if funding wasn’t a blocker? Maybe, or maybe not. We will never know.

The upside is that the dream lives on, albeit with another dreamer(Blockfinex).

Lazerpay

A crypto payment gateway that shutdown its operation after its inability to raise funds from its fundraising round.

At this point, If you come across any web3 startup, do well to ask them, ”who is bankrolling you”?

In an interview with Flip, Lazerpay cofounder disclosed that in the early stage of the company, they focused more on product development than sales and business development, which he considered a mistake on his part. He added that they were faced with regulatory issues while trying to scale up.

Bundle

A crypto company that provided exchange services like buying, selling, deposit and withdrawal of crypto ceased operation to focus on its subsidiary company – Cashlink.

On the reason why they were leaving the market, on their website, they stated:

“ As Web3 and the blockchain community continue to grow, there is a need to focus on payment solutions that meet the ecosystem’s needs, which is the plan with Cashlink”

“We will cease operations of its exchange services as part of the Shareholders’ decision to restructure the business to focus on cashlink”

What next?

A deep question is “Is it a funding problem, User acquisition problem or both”?

Do not for a second think that web3 is not strong enough to get the attention of VCs. Because here is a reminder that outside the shores of Africa, web3 startups with the most mundane idea get funded. And right here in Africa few startups has been able to successfully close their funding rounds.
However, not every startup would be lucky enough to get funded, which is understandable. If you are unlucky, what are the options left?
You ought to access your customer base. Is your product acquiring new users? If so, what are the numbers, can the revenue generated sustain the company until the next round?

You could be building the next big thing, but still struggle to acquire users: pick a lesson from Lazerpay.

Are we doing enough to onboard the next one million users? It seems like right now, the major adopters of web3 are the engineers, content creators, and Influencers A.K.A Airdrop promoters. What are you building? How do you intend to onboard the non-crypto savvy users ?

Regardless of the challenges. Bravo to Africa, for taking this leap of faith, quickly adopting this technology amidst uncertainties, regulatory, and security issues. Also on becoming one of the regions leading the charts on the global adoption of web3 survey.

We are getting recognition from more VCs and in coming years, more startups will be funded.

It takes courage to launch a startup, and greater courage to launch one that is based on a technology that is still gaining traction.It is still very early and its not noon yet.

I live you with this quotes:

“Success is not final, failure is not fatal: it is the courage to continue that counts” -Winston Churchill.

“I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games, 26 times, I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed” -Micheal Jordan

Remember, It is still day one in web3!
GM!