Core Chain has launched a $5 million Africa Innovation Fund with the goal of supporting builders in the Web3 space.

As a layer-1 blockchain dedicated to introducing decentralized applications to the Bitcoin ecosystem, Core Chain intends to assist through grants, technical resources, builder programs, and partnerships with accelerators and institutions.

The Core Africa Innovation Fund aligns with Core Chain’s overarching strategy to empower Web3 developers across Africa.

This fund is structured to adopt a sustainable, long-term approach in supporting startups, while also facilitating connections with venture capitalists and potential investors.

This initiative follows Core Chain’s earlier announcement of a $200 million ecosystem fund, launched in collaboration with Bitget and MEX in April 2023.

Additionally, the company recently participated in the $3.5 million seed round for the liquid re-staking platform, Renzo Protocol.

The introduction of the Core Africa Innovation Fund coincides with a declining trend in funding for Web3 startups.

According to CrunchBase, the sector saw a decrease in fundraising for the eighth consecutive quarter, raising $1.1 billion in the fourth quarter of 2023.

Through this new initiative, the firm aims to capitalize on Africa’s youthful and technologically adept population, as highlighted in a Chainalysis report. The report indicates that the continent accounted for the largest portion of Bitcoin transaction volume from July 2022 to June 2023.