An $8 million seed fund dubbed EchoVC Chain has been formed by EchoVC, a Lagos-based early-stage venture capital firm that invests in underrepresented founders and underserved industries.
EchoVC Chain is targeted at blockchain investments in Africa. The business, which has invested in around 40 businesses in a variety of global areas, made its initial blockchain investment in 2021.
The fund is concentrated on investing in founders and startups that fall under EchoVC’s specific areas of interest, which include decentralized finance functionality, unbundling and delivery of crypto/fintech building blocks, and fintech infrastructure leveraging stablecoins to optimize payments, liquidity, and treasury.
Decentralized autonomous organizations, or DAOs, hold great promise for organizing human networks in addition to scaling autonomously, according to EchoVC. The fund intends to investigate cutting-edge blockchain features like digital identity, privacy, edge nodes for decentralized infrastructure, flexible supply chains, and a potential future meeting point between AI/ML and DAOs.
EchoVC also voiced optimism about the introduction of central bank digital currencies (CBDCs), which act as the banking system’s digital equivalent of cash and reduce barriers to accessing financial goods, facilitate international transfers, and enable programmable local currency.