KEY TAKEAWAYS
- Web3 ecosystems in Africa, Southeast Asia, and Latin America are experiencing increased builder activity, but funding has not kept pace.
- The Lisk EMpower Fund aims to bridge the funding gap with a $15 million initiative tailored for emerging markets.
- The fund offers a structured investment pathway, including tokenized funding, to support scalable growth and global capital access.
- It focuses on projects that solve real-world problems using blockchain technology, enhancing transparency and financial access.
Over the past five years, Web3 ecosystems in Africa, Southeast Asia, and Latin America have seen a significant increase in builder activity. This includes more hackathons, incubators, and grassroots protocols. However, the flow of capital has not matched this surge in innovation. In Africa, total startup funding, including equity and debt, declined by 7% in 2024 compared to the previous year. Meanwhile, venture fundraising in Southeast Asia fell to a four-year low. Across these regions, Web3 startups have captured only a small fraction of available capital, despite clear signs of growing adoption and builder activity.
This disparity between innovation and funding is what the Lisk EMpower Fund aims to address. The fund rethinks traditional funding models, which are often designed for Silicon Valley, to better suit high-growth markets. It focuses on structured, accountable funding designed for founders who prioritize resilience over hype.
How the Lisk EMpower Fund Operates
The Lisk EMpower Fund, a $15 million initiative, is designed to bridge the structural funding gap in emerging markets. It offers a structured pathway for startups, providing a transparent progression from incubation to Series A readiness. This includes early validation, seed funding of up to $250,000, follow-on investments up to $500,000, and preparation for Series A funding. Each stage is backed by measurable milestones and investor-grade diligence.
For investors, this structure offers early access to credible founders, reduced risk, and clear visibility on capital efficiency. For founders, it provides a predictable bridge from local proof-of-concept to global capital. This disciplined growth funnel transforms fragmented grant activity into a unified, scalable investment pathway.
Innovative Features of the Fund
The Lisk EMpower Fund distinguishes itself with several innovative features. It includes a hands-on partnership approach, where selected founders work with the Lisk Advisory Program and regional mentors to refine their business models, governance structures, and fundraising narratives. This collaboration ensures that founders are not only funded but also prepared and positioned to scale globally.
Additionally, part of the fund is tokenized, making it one of the first venture initiatives in Web3 to bring real-world venture investing on-chain. This tokenized structure provides transparent, liquid, and accessible participation for both founders and investors. It offers milestone-based funding and increased credibility for founders, while providing investors with verifiable transparency and early liquidity options.
The fund also maintains a Web3-native focus, backing projects that solve tangible problems where blockchain delivers measurable value. This includes sectors such as payments, remittances, supply-chain transparency, digital identity, and financial access. While the fund encourages applications building on Lisk, it also supports the broader Web3 ecosystem.
For more information on the Lisk EMpower Fund, visit here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Lisk EMpower Fund is launching a $15 million initiative to support Web3 startups in emerging markets, addressing the funding gaps in Africa, Southeast Asia, and Latin America. This fund aims to provide structured and accountable funding for startups focusing on practical blockchain applications.
A recent PR Newswire report highlights that Web3 funding trends in Africa and Southeast Asia are increasingly focused on supporting startups that address real-world problems through blockchain technology. This aligns with the Lisk EMpower Fund’s goal to bridge capital gaps and foster practical blockchain solutions in these regions.
As per insights from FreedomX, while large infrastructure deals attract institutional capital, seed and Series A rounds for traditional Web3 applications are increasingly difficult to close. This supports the significance of the Lisk EMpower Fund’s structured approach to funding, which aims to provide a predictable bridge from local proof-of-concept to global capital.
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