An African startup, Nestcoin, said it raised $6.45 million in a pre-seed funding round attended by tennis star, Serena Williams of Serena Ventures. The startup, which launched in November 2021, plans to use the capital raised to educate, build and invest in web 3.0 applications.
Facilitating Crypto Adoption
Nestcoin, a Nigerian startup that plans to mine and invest in web3 applications, recently announced that it has raised $6.45 million in pre-seed. Venture capital firms Distributed Global and Alter Global led the funding round.
American sports personality Serena Williams’ Serena Ventures, Alameda Research, A&T Capital, MSA Capital and 4DX Ventures also participated in the funding round.
According to a report by Forbes, the startup co-founded by Yele Bademosi and Taiwo Orilogbon plans to use the funds raised to facilitate cryptocurrency adoption. Nestcoin also plans to use the capital raised to fund the construction of a platform that allows content creators to earn while educating startup subscribers.
Speaking after the capital raise announcement, Bademosi explained why he thinks Nestcoin will be a better company than Bundle, a fintech he launched in 2019. He said:
The goal was to be present in more than 30 African countries and to have millions of users.
The Changing Crypto Market
While Bundle has become one of the largest locally established crypto exchanges in Africa, it still could not meet Bademosi’s goal of having a presence in multiple countries. In fact, according to a report, at the time Bademosi left Bundle, the startup only existed in two countries, Nigeria and Ghana. It had less than 100,000 active users, the report adds.
Bundle’s apparent inability to achieve some of Bademosi’s goals ultimately convinced the co-founder to launch another startup in November 2021. Meanwhile, the report cites Bademosi as explaining how the crypto market has evolved.
“The first iteration of crypto products were commercial products. The second iteration focused more on decentralized finance and non-custodial trading of funding activities. The current state of crypto, and now more of the apps that ordinary people use and love, whether it’s consumer apps, financial apps, entertainment, games, but these apps now have the potential reach millions of users in frontier markets. And that’s kind of what we’re trying to do with Nestcoin,” Bademosi explained.
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