Nestcoin, a fintech development company focused on modern finance projects, recently secured a substantial investment of $1.9 million in a strategic funding round. The leading investor in this round was Hashed Emergent, a prominent Web2.5 fund that primarily supports emerging market innovators. Notably, Nestcoin attracted participation from both existing investors, such as Alter Global, Magic Fund, CMT Digital, and 4DX Ventures, and new investors, Adaverse and Base Ecosystem Fund.
This funding initiative comes on the heels of a challenging year for Nestcoin, marked by significant setbacks. Following the FTX cryptocurrency exchange’s implosion, which transpired nearly a year ago, Nestcoin faced considerable losses, including cash and stablecoins. Consequently, the company was compelled to reduce its workforce. Initially, Nestcoin had ambitious plans to create and invest in web3 products across various sectors, including decentralized finance (DeFi), media, digital art, and gaming, catering to customers in emerging markets. However, these unforeseen events necessitated a profound shift in strategy. CEO Yele Bademosi acknowledged that Nestcoin transitioned from being a venture studio and investment holding company to focusing solely on the development of Onboard, a critical pivot in their corporate journey.
Why the Investors Invested
The motivations behind this significant investment are multifaceted and rooted in the evolving landscape of blockchain technology and global financial markets. Notably, the investors’ decision to allocate substantial capital to Nestcoin can be attributed to several key factors:
- Strategic Vision: Nestcoin’s refocused mission on the development of Onboard, a noncustodial wallet, aligns with a broader trend in the financial industry. Investors recognize the growing importance of decentralized finance and the shift toward self-custody solutions. Onboard’s emphasis on security, ease of use (with email-based access), and its potential to provide equitable access to financial services in emerging markets make it an attractive proposition.
- Blockchain Market Dynamics: The blockchain and cryptocurrency landscape has matured significantly since the initial fervor of NFTs, DeFi, and web3 projects. Investors now seek more robust, sustainable ventures, and Onboard, integrated into Coinbase’s Base ecosystem of decentralized apps (dApps), presents a compelling long-term opportunity.
- Backing by Established Entities: Nestcoin’s ability to secure funding from prominent industry players like Binance, FTX, and Coinbase through the Base Ecosystem Fund underscores its credibility and potential for growth. The backing of these influential partners enhances investor confidence in the project’s prospects.
- Global Expansion: Onboard’s ambitions extend beyond its initial Nigerian user base, signaling a commitment to global expansion. This aligns with the overarching vision of bringing blockchain technology to a wider audience, appealing to both tech professionals and enthusiasts worldwide.
A Look at Nestcoin:
Nestcoin, founded just two years ago, initially served as a platform for experimenting with new web and crypto products. Some of these ventures included Breach, a media platform; Brunch, a cryptocurrency-based group messaging tool; and Metaverse Magma (MVM), a gaming DAO. However, the company has since evolved into a specialized development firm for Onboard. MVM now operates independently as a separate entity.
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Onboard, which launched in April, offers a noncustodial wallet and competes with established global services like MetaMask and Trust Wallet, as well as domestic services like Ejara. It allows users to securely store and protect cryptocurrencies, digital assets, and tokens. Notably, Onboard distinguishes itself by offering email-based access instead of the traditional seed phrases, enhancing user convenience and security.
Furthermore, Onboard facilitates P2P trading of digital assets for merchants, providing opportunities for profit generation. Additionally, the development of a virtual card product to enable stablecoin spending across 160+ countries is in progress.
In conclusion, Nestcoin’s recent funding round and strategic shift reflect the evolving dynamics of the blockchain industry, with a focus on self-custody solutions and expanding financial access. Onboard, integrated into Coinbase’s ecosystem, aims to drive global adoption, ultimately contributing to the broader vision of democratizing modern finance. The support from prominent investors underscores the project’s potential in an increasingly competitive and cautious investment landscape.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard