Lisk’s decision to shut down its blockchain is creating a new funding gap for African Web3 startups at a time when capital for blockchain companies across the continent is already becoming harder to secure.
The Swiss-founded blockchain company announced in August 2026 that the Lisk Chain will close on October 31, while its decentralised autonomous organisation (DAO) is also being wound down. Lisk is moving away from operating blockchain infrastructure and shifting its focus toward a financial operations platform for businesses. Projects building on Lisk have been offered a migration path to Celo.
For Africa’s technology ecosystem, however, the change extends beyond the closure of a blockchain network. Lisk had developed a role as an ecosystem backer, particularly for early-stage founders building blockchain applications in African markets.
Its programmes provided funding, mentorship and connections to developers and entrepreneurs. In March 2024, Lisk partnered with CV Labs to launch a six-month blockchain incubation programme for African startups. The programme admitted 43 startups across two cohorts, with 11 completing the full programme. Lisk also worked with AyaHQ, supporting more than 35 startups across several cohorts, while its backing of Web3Bridge included $80,000 for developer training and ecosystem development in Nigeria.
The Lisk DAO Fund, launched in 2025, was intended to move beyond grants and make strategic investments through structures such as SAFEs and SAFTs. According to Lisk DAO, the fund met more than 40 founders across Africa, Latin America and Southeast Asia and made three investments: LovCash, Cr3dentials and Jamit. The fund subsequently closed as Lisk concentrated its resources on its new business direction, with those investments transferred to Onchain Ventures AG.
The timing matters. African blockchain startups raised about $90.1 million across 28 deals in 2025, a 26.6% decline from the previous year, according to Crypto Valley VC data cited by African technology publications.
That means Lisk’s departure does not remove the continent’s entire Web3 funding ecosystem, but it eliminates one source of early-stage capital and ecosystem support. For founders operating before conventional venture capital becomes available, relatively small grants and accelerator cheques can be important for hiring developers, testing products, paying compliance costs and reaching initial users.
There is also a broader lesson in Lisk’s retreat. Blockchain ecosystems often use grants and incentives to attract developers, applications, users and liquidity, but maintaining that cycle requires sustainable economic activity. Lisk says its blockchain and DAO are now being wound down as the company narrows its focus to its new financial-operations business.
African Web3 founders will therefore need to look across a wider pool of blockchain foundations, venture funds, accelerators and strategic investors. Some alternatives are already emerging; for example, CV Labs has continued supporting blockchain startups through programmes involving other ecosystems, including Stellar.
Lisk’s exit ultimately leaves more than a vacant funding programme. It highlights how dependent early-stage Web3 ecosystems can become on a relatively small number of international backers—and how quickly that capital can disappear when the strategic priorities of those backers change.
Leave a Reply