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Accelerator Highlights Increase in Crypto Startups in Asia and Africa This Year

ByDayne Lee

Jul 13, 2024

Accelerator Highlights Increase in Crypto Startups in Asia and Africa This Year

In the rapidly evolving landscape of cryptocurrency startups, the first half of 2024 has marked a significant shift in the geographical distribution of new companies entering the space. Recent data indicates that Africa and Asia have seen their highest levels of startup launches ever, with notable declines in the United States and Canada amidst ongoing regulatory uncertainties.

Regional Shifts in Crypto Startup Launches

According to a July 10th article by Alliance, a blockchain startup accelerator and founder community, there has been a noticeable shift in the distribution of new cryptocurrency startups:

  • Europe: Now leads with a 31.4% share, overtaking North America.
  • Asia: Holds the third position with a 26.8% share of new startups.
  • Africa: Grew to a 5.2% share, closely trailing Latin America.
  • Oceania: Accounted for only 1.8%, with Australia and New Zealand as the primary contributors.

This shift is attributed to regulatory uncertainties in traditional markets like the US and Canada, which have prompted many startups to look towards more favorable environments in emerging markets.

Factors Influencing the Shift

Alliance DAO’s Qiao Wang and “Chloexyg” suggest that the regulatory landscape in the US, characterized by what many describe as a “regulation-by-enforcement” approach by the US Securities and Exchange Commission (SEC), is pushing crypto businesses to establish roots in regions with more welcoming regulatory frameworks. This trend is further supported by the increased adoption of digital asset applications in these emerging markets.

The same regulatory uncertainties have led to significant market exits:

  • Phoenix Wallet and Wasabi Wallet: Both self-custody service providers recently exited the US market.
  • Expansion Elsewhere: Several firms have opted to establish or expand their operations outside of the United States.

Changing Demographics of Startup Founders

Alliance’s analysis of the 3,000 annual applications it receives for its startup accelerator program also revealed changing trends in the backgrounds of startup founders:

  • Decline in Big Tech Backgrounds: The number of startup founders coming from Big Tech firms has dropped by over 15 percentage points since 2021.
  • Educational Background: There has been a similar decrease in founders coming from top 100-ranked universities.

Startup Composition

The composition of these startups also presents interesting insights:

  • Solo Founders: About 39% of startups were launched by a single founder.
  • Small Teams: 51% of startups consisted of teams with 2-5 members.
RegionShare of Startups (%)
Europe31.4
Asia26.8
Africa5.2
Latin AmericaJust above 5.2
Oceania1.8
US & CanadaDecreased significantly

The data from Alliance suggests a continuing trend where regions with less stringent regulatory frameworks or those that are actively fostering a favorable environment for digital assets may continue to attract a growing share of global crypto startups. As the industry matures, these shifts may herald broader changes in the global economic landscape, particularly in how and where new technological innovations are nurtured.

The first half of 2024 has highlighted a pivotal reconfiguration in the global crypto startup ecosystem, driven by regulatory dynamics and market adaptability. As startups navigate through these evolving conditions, the landscape of innovation continues to shift towards regions offering more supportive environments for growth and development in the digital asset space.


Featured image credit: DALL-E by ChatGPT

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Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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